A bill entitled: "The Energy Tax Reform Act of 1985".

Amends the Internal Revenue Code to repeal the option to expense intangible drilling and development costs in the case of oil, gas, and geothermal wells. Repeals the percentage depletion allowance for such wells.

Repeals provisions of the windfall profit tax which: (1) exempt royalty oil for 1982 and thereafter; (2) reduce the tax imposed on newly discovered oil; and (3) exempt independent producer stripper well oil.