Domestic Energy Improvement Act of 1990

Domestic Energy Improvement Act of 1990 - Title I: Percentage Depletion and Intangible Drilling Costs - Amends the Internal Revenue Code to increase to 27.5 percent the depletion allowance for oil and gas wells. Permits the use of such allowance after the transfer of proven oil or gas property. Allows the use of percentage depletion for stripper well production of retailers and certain refiners. Provides that the net income limitation on such allowance does not apply to oil or gas wells. States that intangible drilling costs include geological, geophysical, and surface casing costs. Removes intangible drilling costs from the required 30-percent capitalization of certain exploration and development costs under special rules relating to corporate preference items (thus permitting 100 percent deduction of such costs). Removes intangible drilling costs as an item of tax preference.

Title II: Domestic Energy Improvement Tax Credits - Establishes a tax credit of ten percent of the cost of each barrel of crude oil produced from economically unproductive wells. Places limitations on the amount of such credit and provides for the carryback of unused credit. Establishes a formula for determining when such credit will not be allowed for any calendar year based upon the sale price of domestic crude oil.

Reduces the deduction for oil-related expenses by the amount of the crude oil production credit.

Establishes a tax credit for exploratory domestic oil or gas wells equal to 15-percent of the deduction allowed for intangible drilling and development costs. Places limitations on the amount of such credit and provides for the carryback of unused credit.

Allows an investment tax credit for qualified clean-burning motor vehicle fuel property. Includes the air quality percentage as a factor in determining such credit. Establishes credit-equivalent payments for such property owned by State and local governments. Provides for recapturing such credit if the property ceases to be qualified.

Establishes an investment tax credit for businesses that convert to natural gas equipment. Includes natural gas conversion equipment under the residential energy credit for individuals.

Establishes tax credits for: (1) research relating to clean fuel alternatives and applications; and (2) research to discover or improve one or more tertiary recovery methods for domestic crude oil or natural gas.