A bill to amend the Internal Revenue Code of 1954 to provide an investment credit for oil and gas drilling expenditures.

Allows a 10 percent investment tax credit under the Internal Revenue Code to drillers of new domestic exploratory wells, or reworked wells resulting in additional production, intangible drilling costs, lease acquisition costs, secondary and tertiary recovery costs, and well work-over costs.

Allows a 5 percent supplementary credit of the intangible drilling costs if such exploratory well strikes oil or natural gas in commercial quantities, to be taken against the first tax payable on net income production.