Oil Industry Tax Reform Act of 1979

Oil Industry Tax Reform Act of 1979 - Amends the Internal Revenue Code to repeal the percentage depletion allowance for independent oil and gas producers and royalty owners.

Repeals the tax treatment of intangible drilling and development costs for oil and gas wells (except nonproductive wells) as currently deductible expenses. Requires such costs to be capitalized and amortized over a 168 month period.

Disallows an income tax credit for foreign taxes paid by domestic corporations on foreign oil related income. Treats such taxes as royalties for which a deduction or exclusion from foreign source income would be allowed.

Requires the payment of income taxes at the corporate level on the foreign oil-related income of domestic corporations.