Text: H.R.5912 — 101st Congress (1989-1990)All Information (Except Text)

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HR 5912 IH
101st CONGRESS
2d Session
 H. R. 5912
To amend the Internal Revenue Code of 1986 to reinstate the windfall profit
tax on domestic crude oil, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
October 24, 1990
Mr. LEVINE introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to reinstate the windfall profit
tax on domestic crude oil, 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. SHORT TITLE.
  This Act may be cited as the `Windfall Oil Profits Tax Act of 1990'.
SEC. 2. REINSTATEMENT OF WINDFALL PROFIT TAX ON DOMESTIC CRUDE OIL.
  (a) IN GENERAL- Subtitle D of the Internal Revenue Code of 1986 (relating
  to excise taxes) is amended by inserting after chapter 44 the chapter
  45 of such Code (relating to windfall profit tax on domestic crude oil)
  as in effect on the day before the date of the enactment of the Omnibus
  Trade and Competitiveness Act of 1988 (Public Law 100-418).
  (b) AMOUNT OF TAX- Subsection (b) of section 4987 of such Code (as added
  by subsection (a) of this section) is amended to read as follows:
  `(b) APPLICABLE PERCENTAGE- For purposes of subsection (a)--
  `(1) GENERAL RULE- The applicable percentage for taxable crude oil which
  is not independent producer oil is--
  `(A) in the case of tier 1 oil, 80 percent,
  `(B) in the case of tier 2 oil, 75 percent, and
  `(C) in the case of tier 3 oil, 60 percent.
  `(2) INDEPENDENT PRODUCER OIL- The applicable percentage for taxable crude
  oil which is independent producer oil is--
  `(A) in the case of tier 1 oil, 70 percent,
  `(B) in the case of tier 2 oil, 40 percent, and
  `(C) in the case of tier 3 oil, 30 percent.'
  (c) BASE PRICE-
  (1) IN GENERAL- Section 4989 of such Code (as added by subsection (a) of
  this section) is amended by striking subsections (c) and (d) and inserting
  the following new subsection:
  `(c) BASE PRICE- For purposes of this chapter, the base price shall be the
  average price per barrel of taxable crude oil during the 6-month period
  ending on July 31, 1990, as determined by the Secretary.'
  (2) INFLATION ADJUSTMENT- Subsection (b) of such section 4989 is amended--
  (A) in paragraph (1)(B) by striking `June 30, 1979' and inserting `June 30,
  1990', and
  (B) in paragraph (2), by striking `September 1979' and inserting `September
  1990'.
  (d) DURATION OF TAX-
  (1) IN GENERAL- Subchapter A of chapter 45 of such Code (as added by
  subsection (a) of this section) is amended by striking section 4990
  (relating to phaseout of tax).
  (2) CLERICAL AMENDMENT- The table of sections for such subchapter A is
  amended by striking the item relating to section 4990.
  (e) MODIFICATION OF CATEGORY OF NEWLY DISCOVERED OIL- Paragraph (2) of
  section 4991(e) of such Code (as added by subsection (a) of this section)
  is amended by adding at the end the following new sentence: `Such term
  shall not include any oil produced from a well drilled before the date of
  the enactment of the Windfall Oil Profits Tax Act of 1990 and shall not
  include any oil produced from a well drilled on or after such date on any
  proven oil or gas property (within the meaning of section 613A(c)(9)(A)).'
  (f) CONFORMING AMENDMENTS- Each provision of law amended by section 1941(b)
  of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-418)
  is amended to read as if the amendments made by such section had not
  been enacted.
  (g) EFFECTIVE DATE- The amendments made by this section shall apply to
  oil removed from the premises in calendar months beginning more than 90
  days after the date of the enactment of this Act.
SEC. 3. ALTERNATIVE ENERGY TECHNOLOGY AND ENERGY CONSERVATION TRUST FUND.
  (a) IN GENERAL- Subchapter A of chapter 98 of the Internal Revenue Code
  of 1986 (relating to trust fund code) is amended by adding at the end the
  following new section:
`SEC. 9511. ALTERNATIVE ENERGY TECHNOLOGY AND ENERGY CONSERVATION TRUST FUND.
  `(a) CREATION OF TRUST FUND- There is established in the Treasury of the
  United States a trust fund to be known as the `Alternative Energy Technology
  and Energy Conservation Trust Fund', consisting of any amount appropriated
  or credited to the Trust Fund as provided in this section or section 9602(b).
  `(b) TRANSFERS TO TRUST FUND- There are hereby appropriated to the
  Alternative Energy Technology and Energy Conservation Trust Fund amounts
  equivalent to      percent of the taxes received in the Treasury under
  chapter 45 (relating to windfall profit tax on domestic crude oil).
  `(c) EXPENDITURES FROM TRUST FUND-
  `(1) IN GENERAL- Amounts in the Alternative Energy Technology and Energy
  Conservation Trust Fund shall be available, as provided in appropriation
  Acts, to the Secretary of Energy to carry out programs to develop--
  `(A) alternative energy sources and technologies that do not adversely
  affect the environment, and
  `(B) methods of energy conservation that are cost-effective for the general
  public  to employ.
  `(2) TREATMENT OF FUNDS AS SUPPLEMENTAL- Any amount made available under
  paragraph (1) shall be used to supplement, and not supplant, funds otherwise
  available for the programs described in such paragraph.'
  (b) CLERICAL AMENDMENT- The table of sections for such subchapter is
  amended by adding at the end the following new item:
`Sec. 9511. Alternative Energy Technology and Energy Conservation Trust Fund'.