A bill to amend the Internal Revenue Code of 1954 to eliminate, in the case of any oil or gas well located outside the United States, the percentage depletion allowance and the option to deduct intangible drilling and development costs and to reduce the foreign tax credit allowed with respect to the income derived from any such well.

Disallows, under the Internal Revenue Code, deductions on foreign oil and gas wells, tax deductions for intangible drilling and development costs for foreign oil or gas wells, and fifty percent of the tax credit for income, war profits or excess profits tax paid or accrued which is attributable to income from foreign oil or gas wells.

Allows a tax deduction for excess profits taxes imposed by foreign countries to the extent a credit is denied for such taxes.