Shale Oil Production Tax Incentive Act of 1979

Shale Oil Production Tax Incentive Act of 1979 - Amends the Internal Revenue Code to allow a nonrefundable income tax credit equal to $3 for each barrel of shale oil produced by the taxpayer during the taxable year, plus the production credit carryovers and carrybacks for that year.

Reduces the standard $3 per barrel credit proportionately by: (1) the amount of Federal grant funds, if any, used by the taxpayer in the production of shale oil; and (2) the amount by which the adjusted reference price (average refiner acquisition cost of a barrel of imported crude oil during the calendar year immediately preceding the calendar year in which the credit is claimed) exceeds $25. Authorizes the President to adjust the amount of the credit when such action is in the national interest.

Requires, as a condition of eligibility for the credit, that the shale oil be produced within the United States or its possessions. Provides for a cost of living adjustment to the basic $3 credit amount. Requires the Secretary of Energy to publish the adjusted reference price, and an explanation of the method and data used in computing it.