Search bills, members, committees and pages...
(k) Payment of interest
Interest shall not be paid on any overpayment.
(5) for any onshore facility transporting diluted bitumen, bituminous mixtures, or any oil manufactured from bitumen, the liability of the responsible party under section 1002.
(iii) Ineligible lenders
The exclusions under clauses (i) and (ii) shall not apply to a person that is a lender that is—(I) an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.), an investment adviser (as defined in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a))), or a broker or dealer (as those terms are defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) with $250,000,000,000 or more in assets under management; or(II) a bank holding company (as defined in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841)) with $10,000,000,000 or more in total consolidated assets.
7875. Termination of certain provisions relating to fossil-fuel incentives
(a) In general
The following provisions shall not apply to taxable years beginning after the date of the enactment of the End Polluter Welfare Act of 2025:(1) Section 43 (relating to enhanced oil recovery credit).(2) Section 45I (relating to credit for producing oil and natural gas from marginal wells).(3) Section 461(i)(2) (relating to special rule for spudding of oil or natural gas wells).(4) Section 469(c)(3)(A) (relating to working interests in oil and natural gas property).(5) Section 613A (relating to limitations on percentage depletion in case of oil and natural gas wells).(b) Provisions relating to property
The following provisions shall not apply to property placed in service after the date of the enactment of the End Polluter Welfare Act of 2025:(1) Section 168(e)(3)(C)(iii) (relating to classification of certain property).(2) Section 169 (relating to amortization of pollution control facilities) with respect to any atmospheric pollution control facility.(c) Provisions relating to costs and expenses
The following provisions shall not apply to costs or expenses paid or incurred after the date of the enactment of the End Polluter Welfare Act of 2025:(1) Section 179B (relating to deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations).(2) Section 468 (relating to special rules for mining and solid waste reclamation and closing costs).(d) Allocated credits
No new credits shall be certified under section 48A (relating to qualifying advanced coal project credit) after the date of the enactment of the End Polluter Welfare Act of 2025.(e) Arbitrage bonds
Section 148(b)(4) (relating to safe harbor for prepaid natural gas) shall not apply to obligations issued after the date of the enactment of the End Polluter Welfare Act of 2025.
Sec. 7875. Termination of certain provisions relating to fossil-fuel incentives.
(11) Fossil fuel property
(A) In general
This subsection shall not apply with respect to any property which is primarily used for fossil fuel activities and is placed in service during any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025.(B) Fossil fuel activities
For purposes of this paragraph, the term fossil fuel activities means the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), distribution, or marketing of coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel.(C) Exception
The property described in subparagraph (A) shall not include any motor vehicle service station or convenience store which does not qualify as a retail motor fuels outlet under subsection (e)(3)(E)(iii).
(viii) Any item of gain or loss derived from fossil fuel activities (as defined in section 168(k)(11)(B)) during any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025.
(I) Fossil fuel activities
Any research related to fossil fuel activities (as defined in section 168(k)(11)(B)) which is conducted after the date of the enactment of the End Polluter Welfare Act of 2025.
(V) any income derived from fossil fuel activities (as defined in section 168(k)(11)(B)) during any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025, and
(2) Exceptions
This subsection shall not apply to—(A) any exchange of real property held primarily for sale, or(B) any exchange of real property which—(i) is used for fossil fuel activities (as defined in section 168(k)(11)(B)), and(ii) occurs after the date of the enactment of the End Polluter Welfare Act of 2025.
(2) Mid-month convention
For purposes of paragraph (1), any payment paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.
(viii) any natural gas gathering line the original use of which commences with the taxpayer after the date of the enactment of this clause.
(E)(viii)22
(h) Termination for oil, natural gas, and coal companies
Subsection (a) shall not apply to any taxpayer that is in the trade or business of the production, refining, processing, transportation, or distribution of oil, natural gas, or coal for any taxable year beginning after the date of enactment of the End Polluter Welfare Act of 2025.
(h) Termination for oil, natural gas, and coal companies
This section shall not apply to any taxpayer that is in the trade or business of the production, refining, processing, transportation, or distribution of oil, natural gas, or coal for any taxable year beginning after the date of enactment of the End Polluter Welfare Act of 2025.
(f) Termination with respect to coal and hard mineral fossil fuels
In the case of coal, lignite, and oil shale (other than oil shale described in subsection (b)(5)), the allowance for depletion shall be computed without reference to this section for any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025.
(2) 15 percent
If, from deposits in the United States, gold, silver, copper, and iron ore.
(n) Special rules relating to dual capacity taxpayers
(1) General rule
Notwithstanding any other provision of this chapter, any amount paid or accrued to a foreign country or possession of the United States for any period by a dual capacity taxpayer which is in the trade or business of the production, refining, processing, transportation, or distribution of fossil fuel shall not be considered a tax—(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or(B) to the extent such amount exceeds the amount (determined in accordance with regulations) which—(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or(ii) would be paid if no amount other than the amount required to be paid by such taxpayer under the generally applicable income tax imposed by the country or possession were paid or accrued by such dual capacity taxpayer.Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).(2) Dual capacity taxpayer
For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who—(A) is subject to a levy of such country or possession, and(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.(3) Generally applicable income tax
For purposes of this subsection—(A) In general
The term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.(B) Exceptions
Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—(i) persons who are not dual capacity taxpayers, and(ii) persons who are—(I) citizens or residents of the foreign country or possession, or(II) organized or incorporated under the laws of the foreign country or possession.(4) Fossil fuel
For purposes of this subsection, the term fossil fuel means coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel.
(iii) in the case of crude oil received or petroleum products entered after December 31, 2025, 10 cents a barrel.
(f) Application of Oil Spill Liability Trust Fund financing rate
The Oil Spill Liability Trust Fund financing rate under subsection (c) shall apply on and after April 1, 2006, or if later, the date which is 30 days after the last day of any calendar quarter for which the Secretary estimates that, as of the close of that quarter, the unobligated balance in the Oil Spill Liability Trust Fund is less than $2,000,000,000.
(1) Crude oil
(A) In general
The term crude oil includes crude oil condensates, natural gasoline, and synthetic crude oil.(B) Synthetic crude oil
For purposes of subparagraph (A), the term synthetic crude oil means—(i) any bitumen and bituminous mixtures,(ii) any oil derived from bitumen and bituminous mixtures (including oil derived from tar sands),(iii) any liquid fuel derived from coal, and(iv) any oil derived from kerogen-bearing sources (including oil derived from oil shale).
(10) Regulatory authority to address other types of crude oil and petroleum products
Under such regulations as the Secretary may prescribe, the Secretary may include as crude oil or as a petroleum product subject to tax under section 4611, any fuel feedstock or finished fuel product customarily transported by pipeline, vessel, railcar, or tanker truck if the Secretary determines that—(A) the classification of such fuel feedstock or finished fuel product is consistent with the definition of oil under the Oil Pollution Act of 1990, and(B) such fuel feedstock or finished fuel product is produced in sufficient commercial quantities as to pose a significant risk of hazard in the event of a discharge.
(5) Expenses for removal costs and damages relating to certain oil spill liability
Notwithstanding paragraphs (2) and (3), no deduction shall be allowed under this chapter for any costs or damages for which the taxpayer is liable under section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702)
56 Tax on severance of crude oil and natural gas from the outer Continental Shelf in the Gulf of Mexico
Sec. 5901. Imposition of tax.Sec. 5902. Taxable crude oil or natural gas and removal price.Sec. 5903. Special rules and definitions.5901. Imposition of tax
(a) In general
In addition to any other tax imposed under this title, there is hereby imposed a tax equal to 13 percent of the removal price of any taxable crude oil or natural gas removed from the premises during any taxable period.(b) Credit for Federal royalties paid
(1) In general
There shall be allowed as a credit against the tax imposed by subsection (a) with respect to the production of any taxable crude oil or natural gas an amount equal to the aggregate amount of royalties paid under Federal law with respect to such production.(2) Limitation
The aggregate amount of credits allowed under paragraph (1) to any taxpayer for any taxable period shall not exceed the amount of tax imposed by subsection (a) for such taxable period.(c) Tax paid by producer
The tax imposed by this section shall be paid by the producer of the taxable crude oil or natural gas.5902. Taxable crude oil or natural gas and removal price
(a) Taxable crude oil or natural gas
For purposes of this chapter, the term taxable crude oil or natural gas means crude oil or natural gas which is produced from Federal submerged lands on the outer Continental Shelf in the Gulf of Mexico pursuant to a lease entered into with the United States which authorizes the production.(b) Removal price
For purposes of this chapter—(1) In general
Except as otherwise provided in this subsection, the term removal price means—(A) in the case of taxable crude oil, the amount for which a barrel of such crude oil is sold, and(B) in the case of taxable natural gas, the amount per 1,000 cubic feet for which such natural gas is sold.(2) Sales between related persons
In the case of a sale between related persons, the removal price shall not be less than the constructive sales price for purposes of determining gross income from the property under section 613.(3) Oil or natural gas removed from property before sale
If crude oil or natural gas is removed from the property before it is sold, the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613.(4) Refining begun on property
If the manufacture or conversion of crude oil into refined products begins before such oil is removed from the property—(A) such oil shall be treated as removed on the day such manufacture or conversion begins, and(B) the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613.(5) Property
The term property has the meaning given such term by section 614.5903. Special rules and definitions
(a) Administrative requirements
(1) Withholding and deposit of tax
The Secretary shall provide for the withholding and deposit of the tax imposed under section 5901 on a quarterly basis.(2) Records and information
Each taxpayer liable for tax under section 5901 shall keep such records, make such returns, and furnish such information (to the Secretary and to other persons having an interest in the taxable crude oil or natural gas) with respect to such oil as the Secretary may by regulations prescribe.(3) Taxable periods; return of tax
(A) Taxable period
Except as provided by the Secretary, each calendar year shall constitute a taxable period.(B) Returns
The Secretary shall provide for the filing, and the time for filing, of the return of the tax imposed under section 5901.(b) Definitions
For purposes of this chapter—(1) Producer
The term producer means the holder of the economic interest with respect to the crude oil or natural gas.(2) Crude oil
The term crude oil includes crude oil condensates and natural gasoline.(3) Premises and crude oil product
The terms premises and crude oil product have the same meanings as when used for purposes of determining gross income from the property under section 613.(c) Adjustment of removal price
In determining the removal price of oil or natural gas from a property in the case of any transaction, the Secretary may adjust the removal price to reflect clearly the fair market value of oil or natural gas removed.(d) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.
(5) The tax imposed by section 5901(a) (after application of section 5901(b)) on the severance of crude oil or natural gas from the outer Continental Shelf in the Gulf of Mexico.
Chapter 56. Tax on severance of crude oil and natural gas from the outer Continental Shelf in the Gulf of Mexico.
(a) Amortization of qualified tertiary injectant expenses
(1) In general
Any qualified tertiary injectant expenses paid or incurred by the taxpayer shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred.(2) Mid-month convention
For purposes of paragraph (1), any expenses paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.
(c) Exclusive method
Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to qualified tertiary injectant expenses.
616. Amortization of development expenditures
(a) In general
Any expenditures paid or incurred for the development of a mine or other natural deposit (other than an oil or gas well) if paid or incurred after the existence of ores or minerals in commercially marketable quantities has been disclosed shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expenditure was paid or incurred.(b) Mid-Month convention
For purposes of subsection (a), any expenditures paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.(c) Exclusive method
Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to expenditures described in subsection (a).(d) Treatment upon abandonment
If any property with respect to which expenditures described in subsection (a) are paid or incurred is retired or abandoned during the 84-month period described in such subsection, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this section shall continue with respect to such payment.
Sec. 616. Amortization of development expenditures.
617. Amortization of certain mining exploration expenditures
(a) In general
Any expenditures paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development stage of the mine, shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred.(b) Mid-Month convention
For purposes of subsection (a), any expenditures paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.(c) Exclusive method
Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to expenditures described in subsection (a).(d) Treatment upon abandonment
If any property with respect to which expenditures described in subsection (a) are paid or incurred is retired or abandoned during the 84-month period described in such subsection, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this section shall continue with respect to such payment.
Sec. 617. Amortization of certain mining exploration expenditures.
(5) Dispositions
In the case of any disposition of property to which section 1254 applies (determined without regard to this section), any deduction under paragraph (1) with respect to amounts which are allocable to such property shall, for purposes of section 1254, be treated as a deduction allowable under section 263(c).
(1) In general
In the case of an integrated oil company, the amount allowable as a deduction for any taxable year (determined without regard to this section) under section 263(c) shall be reduced by 30 percent.
(2) Intangible drilling costs
Any amount allowable as a deduction under section 263(c) in determining taxable income (other than costs incurred in connection with a nonproductive well)—(A) shall be capitalized, and(B) shall be allowed as a deduction ratably over the 60-month period beginning with the month in which such amount was paid or incurred.
(2) Exception
In the case of an S corporation, elections under section 901 (relating to taxes of foreign countries and possessions of the United States) shall be made by each shareholder separately.
(c) Intangible drilling and development costs in the case of oil and gas wells and geothermal wells
(1) Geothermal wells
Notwithstanding subsection (a), and except as provided in subsection (i), a taxpayer may elect to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit (as defined in section 613(e)(2)) in such manner as the Secretary provides. This subsection shall not apply with respect to any costs to which any deduction is allowed under section 59(e).(2) Oil and gas wells
Notwithstanding subsection (a), and except as provided in subsection (i), in the case of any expenses paid or incurred in taxable years beginning after the date of the enactment of End Polluter Welfare Act of 2025 in connection with intangible drilling and development costs related to oil and gas wells—(A) such expenses shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred,(B) any such expenses paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month,(C) except as provided in this paragraph, no depreciation or amortization deduction shall be allowed with respect to such expenses, and(D) if any property with respect to which such intangible drilling and development costs are paid or incurred is retired or abandoned during such 84-month period, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this paragraph shall continue with respect to such payment.
(2) Intangible drilling costs
(A) In general
With respect to all geothermal properties of the taxpayer, the amount (if any) by which the amount of the excess intangible drilling costs arising in the taxable year is greater than 65 percent of the net income of the taxpayer from geothermal properties for the taxable year.(B) Excess intangible drilling costs
For purposes of subparagraph (A), the amount of the excess intangible drilling costs arising in the taxable year is the excess of—(i) the intangible drilling and development costs paid or incurred in connection with geothermal wells (other than costs incurred in drilling a nonproductive well) allowable under section 263(c)(1) for the taxable year, over(ii) the amount which would have been allowable for the taxable year if such costs had been capitalized and straight line recovery of intangibles (as defined in subsection (b)) had been used with respect to such costs.(C) Net income from geothermal properties
For purposes of subparagraph (A), the amount of the net income of the taxpayer from geothermal properties for the taxable year is the excess of—(i) the aggregate amount of gross income (within the meaning of section 613(a)) from all geothermal properties of the taxpayer received or accrued by the taxpayer during the taxable year, over(ii) the amount of any deductions allocable to such properties reduced by the excess described in subparagraph (B) for such taxable year.
(9) Coordination with credit for producing fuel from a nonconventional source
The term “qualified facility” shall not include any facility which produces electricity from gas derived from the biodegradation of municipal solid waste if such biodegradation occurred in a facility (within the meaning of section 45K) the production from which is allowed as a credit under section 45K for the taxable year or any prior taxable year.
(4) the foreign base company oil related income for the taxable year (determined under subsection (f) and reduced as provided in subsection (b)(5)).
(f) Foreign base company oil related income
For purposes of this section—(1) In general
Except as otherwise provided in this subsection, the term foreign base company oil related income means foreign oil related income (within the meaning of paragraphs (2) and (3) of section 907(c)) other than income derived from a source within a foreign country in connection with—(A) oil or gas which was extracted from an oil or gas well located in such foreign country, or(B) oil, gas, or a primary product of oil or gas which is sold by the foreign corporation or a related person for use or consumption within such country or is loaded in such country on a vessel or aircraft as fuel for such vessel or aircraft.Such term shall not include any foreign personal holding company income (as defined in subsection (c)).(2) Paragraph (1) applies only where corporation has produced 1,000 barrels per day or more
(A) In general
The term foreign base company oil related income shall not include any income of a foreign corporation if such corporation is not a large oil producer for the taxable year.(B) Large oil producer
For purposes of subparagraph (A), the term large oil producer means any corporation if, for the taxable year or for the preceding taxable year, the average daily production of foreign crude oil and natural gas of the related group which includes such corporation equaled or exceeded 1,000 barrels.(C) Related group
The term related group means a group consisting of the foreign corporation and any other person who is a related person with respect to such corporation.(D) Average daily production of foreign crude oil and natural gas
For purposes of this paragraph, the average daily production of foreign crude oil or natural gas of any related group for any taxable year (and the conversion of cubic feet of natural gas into barrels) shall be determined under rules similar to the rules of section 613A (as in effect on the day before the date of enactment of the End Polluter Welfare Act of 2025) except that only crude oil or natural gas from a well located outside the United States shall be taken into account.
(I) foreign base company oil related income,
(6) Foreign base company oil related income not treated as another kind of base company income
Income of a corporation which is foreign base company oil related income shall not be considered foreign base company income of such corporation under paragraph (2) or (3) of subsection (a).
(j) Termination
This section shall not apply with respect to any qualified carbon oxide captured after the date of enactment of the End Polluter Welfare Act of 2025.
(23) Disclosure of return information for public report on carbon oxide sequestration credit
The Secretary may disclose taxpayer identity information and return information to the extent the Secretary deems necessary for purposes of the report issued pursuant to section 222 of the End Polluter Welfare Act of 2025.
(7) No amount of any tax imposed on any merchandise pursuant to section 4611 of the Internal Revenue Code of 1986 shall be eligible to be refunded as drawback under this subsection.
(2) $0.60.
(b) Inflation adjustment
The $0.60 amount in subsection (a)(2) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting “2024” for “1992” in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.
(A) Definition
(i) In general
The term qualified clean hydrogen means hydrogen produced using an electrolyzer for which the electricity used is—(I) produced at a facility which—(aa) uses qualified renewable energy resources to produce such electricity,(bb) was placed in service not greater than 36 months prior to the date on which the facility which produces such hydrogen was placed in service, and(cc) is in the same region (as defined in the National Transmission Needs Study of the Department of Energy, dated October 30, 2023) as the facility which produces such hydrogen, and(II) produced at the facility described in subclause (I) not less than 1 hour prior to use by the electrolyzer.(ii) Qualified renewable energy resources
The term qualified renewable energy resources means—(I) wind,(II) solar energy,(III) geothermal energy (as defined in section 45(c)(4)),(IV) marine and hydrokinetic renewable energy (as defined in section 45(c)(10)), and(V) hydropower.
(ii) the energy percentage with respect to such property is 6 percent.
(i) the environmental impact of the proposed action;(ii) any adverse environmental effects that cannot be avoided if the proposed action is implemented;(iii) alternatives to the proposed action;(iv) the relationship between local short-term uses of the human environment and the maintenance and enhancement of long-term productivity; and(v) any irreversible and irretrievable commitments of resources that would be involved in the proposed action if the proposed action is implemented.