Energy Tax and Individual Relief Act

Energy Tax and Individual Relief Act - Title I: Oil And Gas Energy Tax Act - Imposes, under the Internal Revenue Code, an excise tax on the windfall profits from domestic crude oil removed from the premises. Prescribes the procedure for calculating the amount of such tax, allowing a plowback credit against such tax. Defines the terms used, including "windfall profit," and sets forth special rules governing this Act. Provides an exemption from the tax where a tax-exempt organization is prohibited from plowing back.

Requires each person liable for the tax, each partnership, trust, or estate producing domestic crude oil, each purchaser of domestic crude oil, and each operator of a well producing domestic crude oil to keep records and returns with respect to such oil. Prescribes the time for filing a return of the windfall profits tax. Requires the purchaser of domestic crude oil to furnish to the person liable for the tax a monthly statement of specified costs, amounts, and prices.

Imposes criminal penalties on persons willfully failing to furnish information required under this Act. Requires that specified information be furnished to partners and beneficiaries of estates and trusts.

Provides for a phase-out of the percentage depletion for domestic oil and gas production. Permits a taxpayer to elect: (1) the 3,000 barrel-a-day exemption; (2) the stripper well exemption; or (3) the Arctic Circle exemption. Provides an exemption for regulated natural gas and natural gas sold under fixed contract. Prescribes special rules governing geothermal energy.

Provides that, in the case of oil and gas wells, the tax treatment which applies to the taxpayer's intangible drilling and development costs shall also apply to his domestic geological and geophysical costs.

Outlines the rules governing the treatment, for purposes of the investment tax credit, of specified property used in international or territorial waters.

Repeals the percentage depletion for foreign oil and gas wells.

Sets limits on the foreign taxes attributable to foreign oil and gas extraction income. Provides for the separate computation of foreign tax credit for oil and gas related income. Provides for the denial of Domestic International Sales Corporation benefits with respect to energy resources.

Title II: Increase In Low Income Allowance; Certain Other Adjustments In the Tax Laws - Increases the low-income allowance for (1) married individuals filing jointly and for surviving spouses to $1900, (2) single individuals to $1600, and (3) married individuals filing separate returns to $950.

Increases the percentage standard deduction to 16 percent up to a maximum of $2300 ($1,150 in the case of a separate return by a married individual).

Changes the withholding tables to reflect the increases in the low-income allowance and the percentage standard deduction.

Authorize individuals to carry back a net capital loss in excess of $30,000 to each of the three taxable years preceding the loss year.

Increases the investment credit to seven percent for public utilities. Increases the limitation relating to the investment credit from 50 percent to specified percentages for the years 1974 through 1979.

Extends for one year the period during which pollution control facilities, railroad rolling stock, rehabilitation, housing, and coal mine safety equipment may qualify for the 5-year amortization deduction under the Internal Revenue Code.

Provides a tax deduction to taxpayers on the accrual method of accounting for accrued vacation pay for which they become liable during the taxable year.

Allows application of the class life system to real property in order to determine the useful life of such property for purposes of taking the depreciation deduction for such property.

Provides a tax deduction for deficiency dividends with respect to a determination of adjustment for a real estate investment trust.

Provides a civil penalty in addition to any other penalty imposed by law with respect to liability for interest for any period by reason of a determination that a deduction for deficiency dividends is allowable.

States that, instead of disqualifying a real estate investment trust where the income tests are not met, specified taxes shall be imposed on non-qualifying income or in the case of failure to meet requirements.

Imposes a tax on the net income from foreclosure property and property subject to capital gain or loss treatment on every real estate investment trust.

Raises the percentage income requirements with respect to specified types of property necessary for treatment as a real estate investment trust for income tax purposes.

Redefines the term "independent contractor" for the purposes of taxing real estate investment trusts.

Imposes an excise tax based on real estate investment trust taxable income not distributed during the taxable year.

Places a tax on the political organization taxable income of every political organization. Provides an alternative tax in the case of capital gains. Defines the taxable income of a political organization. Extends existing tax credit and tax deduction provisions for political contributions to contributions for newsletters. Provides that, upon the transfer of appreciated property to a political organization, the transferor shall be treated as having realized an amount equal to the fair market value of such property on the date of transfer. Provides that the gift tax shall not be applicable to contributions to political organizations.

Increases the interest charged for nonpayment, underpayment, overpayment or extensions of time for payment of income tax from 6 to 9 percent.

Title III: Changes In The Treatment of Foreign Income - Repeals the earned income exclusion for United States citizens who are bonafide residents of foreign countries, and, in lieu thereof, provides for a phaseout of such exclusion to be completed by the end of taxable year 1977.

Provides a tax deduction of up to $100 per month for tuition expenses of dependents of taxpayers employed outside the United States.

States that gross income shall not include any item furnished a taxpayer by his employer where such item is not provided on a discriminatory basis in favor of officers or highly compensated employees.

Provides that income from foreign trusts having one or more United States beneficiaries shall be taxed currently to the grantor.

Provides, in addition to the partial tax on the undistributed income of foreign trusts, a special interest charge on such undistributed income.

Places a 35 percent excise tax on the difference between the fair market value of property transferred by a citizen or resident of the United States to foreign corporations, trusts, or partnerships and the adjusted basis plus the amount of gain to the transferor at the time of the transfer.

Repeals the minimum distribution exception to the requirement of current taxation of income to a controlled foreign corporation. Excludes sales income from foreign manufacturing from foreign base company sales income.

Repeals the exception to the requirement of current taxation of income to foreign controlled corporations for reinvestment in less developed countries.

Redefines the term "United States property" for purposes of investment in such property by controlled foreign corporations.

Repeals the exclusion for earnings of less developed country corporations for purposes or recognizing gain from certain sales or exchanges of stock in certain foreign corporations.

Provides that shipping profits of controlled foreign corporations shall be taxed currently except to the extent that such profits are reinvested in shipping operations.

Authorizes the President to terminate Domestic International Sales Corporation provisions when he determines that it is necessary or appropriate to carry out any trade agreement to reduce barriers to international trade, provided that neither the House of Representatives nor the Senate adopts a resolution of disapproval within 90 days.

Provides that the total amount of any foreign tax credit shall not exceed the same proportion of the tax against which such credit is taken which the taxpayer's income from sources outside of the United States bears to his entire taxable income for the same year. Provides for a 2-year carryback and 5-year carry forward of excess tax paid to foreign countries.

Provides a formula for the recapture of overall foreign loss sustained by a taxpayer in any taxable year.

Provides that dividends from less developed country corporations must be grossed up for purposes of determining United States income and foreign tax credit against that income.

Sets forth a formula for the treatment of capital gains for purposes of the foreign tax credit.

States the conditions under which interest received by a nonresident alien from portfolio debt investments shall be excluded from gross income.

Removes the exclusion from gross income whenever the Secretary of the Treasury determines that the exchange of necessary information between the United States and a foreign country is inadequate to identify the beneficial recipients of interest payments from sources within the United States.

Provides for the exclusion from taxable income of specified items by electing contiguous country branches of domestic mutual life insurance companies.

Changes the rules applicable to determining the tax credit allowable to corporations conducting trade or business in Puerto Rico and possessions of the United States.

Provides for a phaseout of the special deduction for Western Hemisphere trade corporations.