A bill to provide a tax credit for expenditures made in the exploration and development of new reserves of oil and gas in the United States.

Provides a tax credit under the Internal Revenue Code equal to 12-1/2 percent of expenditures made in the exploration, development, and development on a secondary recovery basis of new reserves of oil and gas in the United States. Limits the duration of the availability of this tax credit to 10 years after the adoption of this Act. Provides that this tax credit may not have the effect of causing the amount of a taxpayer's credit to exceed his tax. Provides for a 3 year carryback and a 7 year carryover of the unused credit.