Old Oil Adjustment Tax and New Oil Deregulation Act of 1979

Old Oil Adjustment Tax and New Oil Deregulation Act of 1979 - Amends the Internal Revenue Code to impose an excise tax upon the windfall profits of producers of taxable crude oil which is extracted during each taxable period. Exempts producers from such tax whose production during any taxable period does not exceed the product of 3,000 barrels multiplied by the number of days during such period.

Establishes the amount of such tax at 100 percent of the windfall profit on tier one and tier two oil, and 60 percent of the windfall profit on tier three oil. Provides for a 50 percent tax rate in the case of Sadlerochit oil which is tier three oil.

Defines "taxable crude oil" as all domestic crude oil other than: (1) qualified Alaskan oil (crude oil produced from a well north of the Arctic Circle other than Sadlerochit oil); (2) newly discovered oil and incremental tertiary oil; and (3) stripper oil (as defined by the June 1979 energy regulations). Defines "tier one oil" as domestic crude oil which is lower tier oil (oil subject to the lower tier ceiling price rule of the June 1979 energy regulations), or would be lower tier oil if the base production control level for such oil were reduced for January 1980 and each month thereafter by one and one-half percent. Defines "tier two oil" as upper tier oil (oil subject to the upper tier ceiling price rule of the June 1979 energy regulations) other than tier one oil subject to base production control level reductions and Sadlerochit oil. Defines "tier three oil" as oil other than tier one and tier two oil.

Defines "windfall profit" as the excess of the removal price (price per barrel) over the sum of the adjusted base price of a barrel (base price adjusted for inflation), plus the amount of the severance tax adjustment with respect to such barrel. Provides that the windfall profit on any barrel of crude oil shall not exceed the net income attributable to such barrel. Provides that the net income attributable to a barrel shall be determined for the taxable year by dividing the taxable income from the property which is attributable to taxable crude oil by the number of barrels of that oil produced from the property during the taxable year. Determines taxable income from the property attributable to taxable crude oil without regard to deductions for depletion, intangible drilling and development costs, and the windfall profit tax. Provides that taxable income shall be reduced by the deduction for cost depletion which would have been allowable if all intangible drilling costs had been capitalized and taken into account in computing cost depletion for the property for all periods. Prescribes a special rule for determining the taxable income limit in the case of certain transfers of proven oil or gas properties after 1978.

Sets forth the base prices for the three tiers of crude oil subject to the March 1979 energy regulations. Provides for monthly increments beginning on November 1, 1986, for tier two oil of any grade for purposes of eliminating after December 31, 1990, the gap between the tier two base price and the tier three base price for such oil.

Defines and sets forth base prices for newly discovered oil, Sadlerochit oil, and incremental tertiary oil.

Exempts income from interests in oil production owned by State or local governments, or by public educational institutions from the windfall profits tax if such income is dedicated to public education.

Requires oil producers to maintain such records with respect to oil production as the Secretary of the Treasury may require. Specifies that windfall profit tax returns must be filed not later than the last day of the second month following the close of the taxable period. Requires the purchaser of taxable crude oil to furnish to the individual responsible for the payment of the windfall profits tax a monthly statement containing information with respect to: (1) the amount of taxable crude oil purchased during such month; (2) the removal price of such oil; (3) the base price and the adjusted base price of such oil; (4) the amount of such taxpayer's liability for tax; and (5) other information which the Secretary may require. Imposes fines and criminal penalties for willful failure to provide such information.

Requires each partnership, estate, and trust producing domestic crude oil for any taxable period to furnish to each partner or beneficiary a written statement showing: (1) the name of such partner or beneficiary; (2) information received by the partnership, trust, or estate from the purchaser of crude oil; and (3) each partner's or beneficiary's share from the sale of crude oil.

Directs the President to submit to the Congress a report on the effect of decontrol of oil prices and the windfall profit tax on: (1) domestic oil production; (2) oil imports; (3) oil industry profits; (4) inflation; (5) employment; (6) economic growth; (7) Federal revenues; and (8) national security.