TABLE OF CONTENTS:
Title I: Tax Incentives for Oil and Gas Production
Subtitle A: Production Credit
Subtitle B: Modifications to Percentage Depletion
Title II: Percentage Depletion Rate for Marginal Production
Title III: Other Provisions
Title IV: 6-Year Period of Limitation for Collection of Oil
and Gas Royalties
Energy Independence Act of 1996 - Title I: Tax Incentives for Oil and Gas Production - Subtitle A: Production Credit - Amends the Internal Revenue Code to allow a business tax credit for producing crude oil and natural gas from new wells and marginal wells.
Provides: (1) a formula for reducing such credit in years in which oil and gas prices increase; and (2) an inflation adjustment for such formula. Allows such credit against the regular and minimum tax.
Subtitle B: Modifications to Percentage Depletion - Repeals the net income limitation on percentage depletion for oil and gas properties.
(Sec. 112) Makes all marginal production of domestic crude oil or domestic natural gas eligible for percentage depletion.
Title II: Percentage Depletion Rate for Marginal Production - Revises the percentage depletion rate for such marginal production.
Title III: Other Provisions - Allows the election to treat geological and geophysical expenses incurred in connection with the exploration for, or development of, domestic oil or gas as expenses which are not chargeable to capital account.
(Sec. 302) Makes the enhanced oil recovery credit applicable to secondary recovery methods. Allows such credit against the minimum tax.
Title IV: 6-Year Period of Limitation for Collection of Oil and Gas Royalties - Establishes a six-year statute of limitations on actions commenced by the United States for recovery of royalties due under an oil and gas lease on Federal lands unless a lessee has made a false or fraudulent statement with the intent to evade the royalties due.
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy and Mineral Resources.
Executive Comment Requested from Interior.
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