HR 6 EAS1S/PP
‘‘(i) I
N GENERAL
.—Except as provided
1
in clause (ii), the applicable percentage is
2
75 percent.
3
‘‘(ii) R
EDUCED PERCENTAGE
.—In the
4
case of a small business refiner with average
5
daily refinery runs for the period described
6
in subsection (b)(2) in excess of 155,000
7
barrels, the percentage described in clause
8
(i) shall be reduced (not below zero) by the
9
product of such percentage (before the appli-
10
cation of this clause) and the ratio of such
11
excess to 50,000 barrels.
12
‘‘(b) D
EFINITIONS
.—For purposes of this section—
13
‘‘(1) Q
UALIFIED
CAPITAL
COSTS
.—The term
14
‘qualified capital costs’ means any costs which—
15
‘‘(A) are otherwise chargeable to capital ac-
16
count, and
17
‘‘(B) are paid or incurred for the purpose
18
of complying with the Highway Diesel Fuel Sul-
19
fur Control Requirement of the Environmental
20
Protection Agency, as in effect on the date of the
21
enactment of this section, with respect to a facil-
22
ity placed in service by the taxpayer before such
23
date.
24
†
919
HR 6 EAS1S/PP
‘‘(2) S
MALL
BUSINESS
REFINER
.—The term
1
‘small business refiner’ means, with respect to any
2
taxable year, a refiner of crude oil, which, within the
3
refinery operations of the business, employs not more
4
than 1,500 employees on any day during such taxable
5
year and whose average daily refinery run for the 1-
6
year period ending on the date of the enactment of
7
this section did not exceed 205,000 barrels.
8
‘‘(c) C
OORDINATION
W
ITH
O
THER
P
ROVISIONS
.—Sec-
9
tion 280B shall not apply to amounts which are treated
10
as expenses under this section.
11
‘‘(d) B
ASIS
R
EDUCTION
.—For purposes of this title,
12
the basis of any property shall be reduced by the portion
13
of the cost of such property taken into account under sub-
14
section (a).
15
‘‘(e) C
ONTROLLED
G
ROUPS
.—For purposes of this sec-
16
tion, all persons treated as a single employer under sub-
17
section (b), (c), (m), or (o) of section 414 shall be treated
18
as a single employer.’’.
19
(b) C
ONFORMING
A
MENDMENTS
.—
20
(1) Section 263(a)(1), as amended by this Act, is
21
amended by striking ‘‘or’’ at the end of subparagraph
22
(I), by striking the period at the end of subparagraph
23
(J) and inserting ‘‘, or’’, and by inserting after sub-
24
paragraph (J) the following new subparagraph:
25
†
920
HR 6 EAS1S/PP
‘‘(K) expenditures for which a deduction is
1
allowed under section 179D.’’.
2
(2) Section 263A(c)(3) is amended by inserting
3
‘‘179C,’’ after ‘‘section’’.
4
(3) Section 312(k)(3)(B), as amended by this
5
Act, is amended by striking ‘‘or 179C’’ each place it
6
appears in the heading and text and inserting ‘‘,
7
179C, or 179D’’.
8
(4) Section 1016(a), as amended by this Act, is
9
amended by striking ‘‘and’’ at the end of paragraph
10
(33), by striking the period at the end of paragraph
11
(34) and inserting ‘‘, and’’, and by adding at the end
12
the following new paragraph:
13
‘‘(35) to the extent provided in section
14
179D(d).’’.
15
(5) Section 1245(a), as amended by this Act, is
16
amended by inserting ‘‘179D,’’ after ‘‘179C,’’ both
17
places it appears in paragraphs (2)(C) and (3)(C).
18
(6) The table of sections for part VI of sub-
19
chapter B of chapter 1, as amended by this Act, is
20
amended by inserting after section 179C the following
21
new item:
22
‘‘Sec. 179D. Deduction for capital costs incurred in complying with Environ-
mental Protection Agency sulfur regulations.’’.
(c) E
FFECTIVE
D
ATE
.—The amendment made by this
23
section shall apply to expenses paid or incurred after the
24
†
921
HR 6 EAS1S/PP
date of the enactment of this Act, in taxable years ending
1
after such date.
2
SEC. 2304. ENVIRONMENTAL TAX CREDIT.
3
(a) I
N
G
ENERAL
.—Subpart D of part IV of subchapter
4
A of chapter 1 (relating to business-related credits), as
5
amended by this Act, is amended by adding at the end the
6
following new section:
7
‘‘SEC. 45L. ENVIRONMENTAL TAX CREDIT.
8
‘‘(a) I
N
G
ENERAL
.—For purposes of section 38, the
9
amount of the environmental tax credit determined under
10
this section with respect to any small business refiner for
11
any taxable year is an amount equal to 5 cents for every
12
gallon of 15 parts per million or less sulfur diesel produced
13
at a facility by such small business refiner during such tax-
14
able year.
15
‘‘(b) M
AXIMUM
C
REDIT
.—
16
‘‘(1) I
N GENERAL
.—For any small business re-
17
finer, the aggregate amount determined under sub-
18
section (a) for any taxable year with respect to any
19
facility shall not exceed the applicable percentage of
20
the qualified capital costs paid or incurred by such
21
small business refiner with respect to such facility
22
during the applicable period, reduced by the credit al-
23
lowed under subsection (a) for any preceding year.
24
†
922
HR 6 EAS1S/PP
‘‘(2) A
PPLICABLE PERCENTAGE
.—For purposes
1
of paragraph (1)—
2
‘‘(A) I
N GENERAL
.—Except as provided in
3
subparagraph (B), the applicable percentage is
4
25 percent.
5
‘‘(B) R
EDUCED PERCENTAGE
.—The percent-
6
age described in subparagraph (A) shall be re-
7
duced in the same manner as under section
8
179D(a)(2)(B)(ii).
9
‘‘(c) D
EFINITIONS
.—For purposes of this section—
10
‘‘(1) I
N GENERAL
.—The terms ‘small business re-
11
finer’ and ‘qualified capital costs’ have the same
12
meaning as given in section 179D.
13
‘‘(2) A
PPLICABLE PERIOD
.—The term ‘applicable
14
period’ means, with respect to any facility, the period
15
beginning on the day after the date which is 1 year
16
after the date of the enactment of this section and
17
ending with the date which is 1 year after the date
18
on which the taxpayer must comply with the applica-
19
ble EPA regulations with respect to such facility.
20
‘‘(3) A
PPLICABLE EPA REGULATIONS
.—The term
21
‘applicable EPA regulations’ means the Highway
22
Diesel Fuel Sulfur Control Requirements of the Envi-
23
ronmental Protection Agency, as in effect on the date
24
of the enactment of this section.
25
†
923
HR 6 EAS1S/PP
‘‘(d) C
ERTIFICATION
.—
1
‘‘(1) R
EQUIRED
.—Not later than the date which
2
is 30 months after the first day of the first taxable
3
year in which the environmental tax credit is allowed
4
with respect to qualified capital costs paid or in-
5
curred with respect to a facility, the small business
6
refiner shall obtain a certification from the Secretary,
7
in consultation with the Administrator of the Envi-
8
ronmental Protection Agency, that the taxpayer’s
9
qualified capital costs with respect to such facility
10
will result in compliance with the applicable EPA
11
regulations.
12
‘‘(2) C
ONTENTS OF APPLICATION
.—An applica-
13
tion for certification shall include relevant informa-
14
tion regarding unit capacities and operating charac-
15
teristics sufficient for the Secretary, in consultation
16
with the Administrator of the Environmental Protec-
17
tion Agency, to determine that such qualified capital
18
costs are necessary for compliance with the applicable
19
EPA regulations.
20
‘‘(3) R
EVIEW PERIOD
.—Any application shall be
21
reviewed and notice of certification, if applicable,
22
shall be made within 60 days of receipt of such appli-
23
cation. In the event the Secretary does not notify the
24
taxpayer of the results of such certification within
25
†
924
HR 6 EAS1S/PP
such period, the taxpayer may presume the certifi-
1
cation to be issued until so notified.
2
‘‘(4) S
TATUTE OF LIMITATIONS
.—With respect to
3
the credit allowed under this section—
4
‘‘(A) the statutory period for the assessment
5
of any deficiency attributable to such credit shall
6
not expire before the end of the 3-year period
7
ending on the date that the review period de-
8
scribed in paragraph (3) ends, and
9
‘‘(B) such deficiency may be assessed before
10
the expiration of such 3-year period notwith-
11
standing the provisions of any other law or rule
12
of law which would otherwise prevent such as-
13
sessment.
14
‘‘(e) C
ONTROLLED
G
ROUPS
.—For purposes of this sec-
15
tion, all persons treated as a single employer under sub-
16
section (b), (c), (m), or (o) of section 414 shall be treated
17
as a single employer.
18
‘‘(f) C
OOPERATIVE
O
RGANIZATIONS
.—
19
‘‘(1) A
PPORTIONMENT OF CREDIT
.—In the case
20
of a cooperative organization described in section
21
1381(a), any portion of the credit determined under
22
subsection (a) of this section, for the taxable year
23
may, at the election of the organization, be appor-
24
tioned among patrons eligible to share in patronage
25
†
925
HR 6 EAS1S/PP
dividends on the basis of the quantity or value of
1
business done with or for such patrons for the taxable
2
year. Such an election shall be irrevocable for such
3
taxable year.
4
‘‘(2) T
REATMENT OF ORGANIZATIONS AND PA
-
5
TRONS
.—
6
‘‘(A) O
RGANIZATIONS
.—The amount of the
7
credit not apportioned to patrons pursuant to
8
paragraph (1) shall be included in the amount
9
determined under subsection (a) for the taxable
10
year of the organization.
11
‘‘(B) P
ATRONS
.—The amount of the credit
12
apportioned to patrons pursuant to paragraph
13
(1) shall be included in the amount determined
14
under subsection (a) for the first taxable year of
15
each patron ending on or after the last day of
16
the payment period (as defined in section
17
1382(d)) for the taxable year of the organization
18
or, if earlier, for the taxable year of each patron
19
ending on or after the date on which the patron
20
receives notice from the cooperative of the appor-
21
tionment.’’.
22
(b) C
REDIT
M
ADE
P
ART
OF
G
ENERAL
B
USINESS
23
C
REDIT
.—Subsection (b) of section 38 (relating to general
24
business credit), as amended by this Act, is amended by
25
†
926
HR 6 EAS1S/PP
striking ‘‘plus’’ at the end of paragraph (21), by striking
1
the period at the end of paragraph (22) and inserting ‘‘,
2
plus’’, and by adding at the end the following new para-
3
graph:
4
‘‘(23) in the case of a small business refiner, the
5
environmental tax credit determined under section
6
45L(a).’’.
7
(c) D
ENIAL OF
D
OUBLE
B
ENEFIT
.—Section 280C (re-
8
lating to certain expenses for which credits are allowable),
9
as amended by this Act, is amended by adding after sub-
10
section (d) the following new subsection:
11
‘‘(e) E
NVIRONMENTAL
T
AX
C
REDIT
.—No deduction
12
shall be allowed for that portion of the expenses otherwise
13
allowable as a deduction for the taxable year which is equal
14
to the amount of the credit determined for the taxable year
15
under section 45L(a).’’.
16
(d) C
LERICAL
A
MENDMENT
.—The table of sections for
17
subpart D of part IV of subchapter A of chapter 1, as
18
amended by this Act, is amended by adding at the end the
19
following new item:
20
‘‘Sec. 45L. Environmental tax credit.’’.
(e) E
FFECTIVE
D
ATE
.—The amendments made by this
21
section shall apply to expenses paid or incurred after the
22
date of the enactment of this Act, in taxable years ending
23
after such date.
24
†
927
HR 6 EAS1S/PP
SEC. 2305. DETERMINATION OF SMALL REFINER EXCEP-
1
TION TO OIL DEPLETION DEDUCTION.
2
(a) I
N
G
ENERAL
.—Paragraph (4) of section 613A(d)
3
(relating to certain refiners excluded) is amended to read
4
as follows:
5
‘‘(4) C
ERTAIN REFINERS EXCLUDED
.—If the tax-
6
payer or 1 or more related persons engages in the re-
7
fining of crude oil, subsection (c) shall not apply to
8
the taxpayer for a taxable year if the average daily
9
refinery runs of the taxpayer and such persons for the
10
taxable year exceed 60,000 barrels. For purposes of
11
this paragraph, the average daily refinery runs for
12
any taxable year shall be determined by dividing the
13
aggregate refinery runs for the taxable year by the
14
number of days in the taxable year.’’.
15
(b) E
FFECTIVE
D
ATE
.—The amendment made by this
16
section shall apply to taxable years beginning after Decem-
17
ber 31, 2002.
18
SEC. 2306. MARGINAL PRODUCTION INCOME LIMIT EXTEN-
19
SION.
20
Section 613A(c)(6)(H) (relating to temporary suspen-
21
sion of taxable income limit with respect to marginal pro-
22
duction), as amended by section 607(a) of the Job Creation
23
and Worker Assistance Act of 2002, is amended by striking
24
‘‘2004’’ and inserting ‘‘2007’’.
25
†
928
HR 6 EAS1S/PP
SEC. 2307. AMORTIZATION OF GEOLOGICAL AND GEO-
1
PHYSICAL EXPENDITURES.
2
(a) I
N
G
ENERAL
.—Part VI of subchapter B of chapter
3
1, as amended by this Act, is amended by adding at the
4
end the following new section:
5
‘‘SEC. 199. AMORTIZATION OF GEOLOGICAL AND GEO-
6
PHYSICAL EXPENDITURES FOR DOMESTIC
7
OIL AND GAS WELLS.
8
‘‘A taxpayer shall be entitled to an amortization de-
9
duction with respect to any geological and geophysical ex-
10
penses incurred in connection with the exploration for, or
11
development of, oil or gas within the United States (as de-
12
fined in section 638) based on a period of 24 months begin-
13
ning with the month in which such expenses were in-
14
curred.’’.
15
(b) C
LERICAL
A
MENDMENT
.—The table of sections for
16
part VI of subchapter B of chapter 1, as amended by this
17
Act, is amended by adding at the end the following new
18
item:
19
‘‘Sec. 199. Amortization of geological and geophysical expenditures for domestic
oil and gas wells.’’.
(c) E
FFECTIVE
D
ATE
.—The amendments made by this
20
section shall apply to costs paid or incurred in taxable
21
years beginning after December 31, 2002.
22
†
929
Do'stlaringiz bilan baham: | 
