A bill to amend the Internal Revenue Code of 1954 relating to the application of the foreign tax credit to taxpayers engaged in the extraction, production, or refining of oil or gas in foreign countries.

Provides, under provisions of the Internal Revenue Code relating to foreign credit for taxes in lieu of income by oil and gas corporations, that royalties and other fixed charges will no longer be creditable.

Provides that a tax on petroleum companies will be creditable only if it is imposed as a part of a general income tax of the country. States that charges made in addition to the general income tax will not be creditable.