A bill to amend the Internal Revenue Code of 1954 to provide that the option to deduct as expenses intangible drilling and development costs shall not apply to oil wells drilled on proven properties.

Amends the Internal Revenue Code to disallow the option to deduct as expenses in the current taxable year intangible drilling and development costs with respect to an oil well commenced on or after July 13, 1979, on any property the principal value of which, at the time such well is commenced, has been demonstrated by prospecting or exploration or discovery work.