[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 844 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 844
To repeal the medical device excise tax, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
March 24, 2015
Mr. Markey introduced the following bill; which was read twice and
referred to the Committee on Finance
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A BILL
To repeal the medical device excise tax, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REPEAL OF THE MEDICAL DEVICE EXCISE TAX.
(a) In General.--Chapter 32 of the Internal Revenue Code of 1986 is
amended by striking subchapter E.
(b) Conforming Amendments.--
(1) Subsection (a) of section 4221 of such Code is amended
by striking the last sentence.
(2) Paragraph (2) of section 6416(b) of such Code is
amended by striking the last sentence.
(c) Clerical Amendment.--The table of subchapters for chapter 32 of
such Code is amended by striking the item related to subchapter E.
(d) Effective Date.--The amendments made by this section shall
apply to sales after December 31, 2014.
SEC. 2. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING FOR MAJOR
INTEGRATED OIL COMPANIES.
(a) In General.--Section 472 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(h) Major Integrated Oil Companies.--Notwithstanding any other
provision of this section, a major integrated oil company (as defined
in section 167(h)) may not use the method provided in subsection (b) in
inventorying of any goods.''.
(b) Effective Date and Special Rule.--
(1) In general.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2014.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendment made by this section to
change its method of accounting for its first taxable year
beginning after the date of the enactment of this Act--
(A) such change shall be treated as initiated by
the taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to
be taken into account by the taxpayer under section 481
of the Internal Revenue Code of 1986 shall be taken
into account ratably over a period (not greater than 8
taxable years) beginning with such first taxable year.
SEC. 3. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.
(a) Definitions.--In this section:
(1) Covered lease.--The term ``covered lease'' means a
lease for oil or gas production in the Gulf of Mexico that is--
(A) in existence on the date of enactment of this
Act;
(B) issued by the Department of the Interior under
section 304 of the Outer Continental Shelf Deep Water
Royalty Relief Act (43 U.S.C. 1337 note; Public Law
104-58); and
(C) not subject to limitations on royalty relief
based on market price that are equal to or less than
the price thresholds described in clauses (v) through
(vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) Lessee.--The term ``lessee'' includes any person or
other entity that controls, is controlled by, or is in or under
common control with, a lessee.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Issuance of New Leases.--
(1) In general.--The Secretary shall not issue any new
lease that authorizes the production of oil or natural gas
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) to a person described in paragraph (2) unless the person
has renegotiated each covered lease with respect to which the
person is a lessee to modify the payment responsibilities of
the person to require the payment of royalties if the price of
oil and natural gas is greater than or equal to the price
thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).
(2) Persons described.--A person referred to in paragraph
(1) is a person that--
(A) is a lessee that--
(i) holds a covered lease on the date on
which the Secretary considers the issuance of
the new lease; or
(ii) was issued a covered lease before the
date of enactment of this Act, but transferred
the covered lease to another person or entity
(including a subsidiary or affiliate of the
lessee) after the date of enactment of this
Act; or
(B) any other person that has any direct or
indirect interest in, or that derives any benefit from,
a covered lease.
(3) Multiple lessees.--
(A) In general.--For purposes of paragraph (1), if
there are multiple lessees that own a share of a
covered lease, the Secretary may implement separate
agreements with any lessee with a share of the covered
lease that modifies the payment responsibilities with
respect to the share of the lessee to include price
thresholds that are equal to or less than the price
thresholds described in clauses (v) through (vii) of
section 8(a)(3)(C) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)).
(B) Treatment of share as covered lease.--Beginning
on the effective date of an agreement under
subparagraph (A), any share subject to the agreement
shall not constitute a covered lease with respect to
any lessees that entered into the agreement.
(c) Transfers.--A lessee or any other person who has any direct or
indirect interest in, or who derives a benefit from, a lease shall not
be eligible to obtain by sale or other transfer (including through a
swap, spinoff, servicing, or other agreement) any covered lease, the
economic benefit of any covered lease, or any other lease for the
production of oil or natural gas in the Gulf of Mexico under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless the lessee
or other person has--
(1) renegotiated each covered lease with respect to which
the lessee or person is a lessee, to modify the payment
responsibilities of the lessee or person to include price
thresholds that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C) of
the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)); or
(2) entered into an agreement with the Secretary to modify
the terms of all covered leases of the lessee or other person
to include limitations on royalty relief based on market prices
that are equal to or less than the price thresholds described
in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(d) Price Thresholds for Royalty Suspension Provisions.--
(1) In general.--The Secretary shall agree to a request by
any lessee to amend any lease issued for any Central and
Western Gulf of Mexico tract during the period of January 1,
1996, through November 28, 2000, to incorporate price
thresholds applicable to royalty suspension provisions, that
are equal to or less than the price thresholds described in
clauses (v) through (vii) of section 8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) Requirement.--
(A) In general.--A lease amended under paragraph
(1) shall impose the new or revised price thresholds
effective January 1, 2015.
(B) Existing lease provisions.--Existing lease
provisions for a lease amended under paragraph (1)
shall prevail through December 31, 2014.
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