Emergency Bill - Part 2
As I mentioned before, the bill is full of new Tax Credits (i.e. Tax Breaks) except for a few places where there are Negative Tax Credits (i.e. Tax Increases):
(Pg 234)
 7             TITLE IV—REVENUE PROVISIONS
 8
 9 SEC. 401. LIMITATION OF DEDUCTION FOR INCOME AT-
10               TRIBUTABLE TO DOMESTIC PRODUCTION OF
11               OIL, GAS, OR PRIMARY PRODUCTS THEREOF.
12      (a) IN GENERAL.—Section 199(d) is amended by re-
13 designating paragraph (9) as paragraph (10) and by in-
14 serting after paragraph (8) the following new paragraph:
15           ‘‘(9) SPECIAL   RULE FOR TAXPAYERS WITH OIL
16      RELATED QUALIFIED PRODUCTION ACTIVITIES IN-
17      COME.—
18                 ‘‘(A) IN GENERAL. - If a taxpayer has oil
19           related qualified production activities income for
20           any taxable year beginning after 2009, the
21           amount otherwise allowable as a deduction
22           under subsection (a) shall be reduced by 3 per-
23           cent of the least of—
(Pg 235)
 1                       ‘‘(i) the oil related qualified produc-
 2                  tion activities income of the taxpayer for
 3                  the taxable year,
 4                       ‘‘(ii) the qualified production activities
 5                  income of the taxpayer for the taxable
 6                  year, or
 7                       ‘‘(iii)   taxable   income   (determined
 8                  without regard to this section).
 9                  ‘‘(B) OIL     RELATED QUALIFIED PRODUC-
10                  TION    ACTIVITIES    INCOME.—For purposes of
11             this paragraph, the term ‘oil related qualified
12             production activities income’ means for any tax-
13             able year the qualified production activities in-
14             come which is attributable to the production,
15             refining, processing, transportation, or distribu-
16             tion of oil, gas, or any primary product thereof
17             during such taxable year.
18                  ‘‘(C) PRIMARY PRODUCT.—For purposes of
19             this paragraph, the term ‘primary product’ has
20             the same meaning as when used in section
21             927(a)(2)(C), as in effect before its repeal.’’.
So any company in 'oil related qualified production activities' are the lucky recipients of a 3% tax increase, courtesy of Senator Dodd. Note that this affects every level of the supply chain - production, refining, processing, transportation AND distribution. Higher taxes for corporations get passed onto who? I guess it was just two months ago that energy was the hot issue on the hill...obviously the impetus to lower energy costs has been greatly reduced.
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