A bill to establish tax treatment for the sale of domestic corporations incomes of which derives substantially from foreign oil or gas operations.

Treats the sale of foreign oil-related corporate stock or assets, for purposes of taxation, as income from a source within the United States if 80 percent of the gross income of such corporation for the preceding three taxable years was foreign oil-related income as defined in the Internal Revenue Code.

Defines foreign tax credit treatment for any foreign taxes relating to the sale of such a corporation, but provides for allowance of a deduction with respect to such a sale.