Page:United States Statutes at Large Volume 104 Part 2.djvu/894

 104 STAT. 1388-486 PUBLIC LAW 101-508—NOV. 5, 1990 amended by striking paragraphs (9) and (10) and by redesignating paragraphs (11), (12), and (13) as paragraphs (9), (10), and (11), respectively. (b) TECHNICAL AMENDMENT.— Paragraph (11) of section 613A(c), as redesignated by subsection (a), is amended by striking subparagraphs (C) and (D). 26 USC 613A (c) EFFECTIVE DATE.—The amendments made by this section shall °o**- apply to transfers after October 11, 1990. SEC. 11522. NET INCOME LIMITATION ON PERCENTAGE DEPLETION IN- CREASED FROM 50 PERCENT TO 100 PERCENT OF PROPERTY NET INCOME FOR OIL AND GAS PROPERTIES. (a) IN GENERAL.— The second sentence of subsection (a) of section 613 (relating to percentage depletion) is amended by inserting "(100 percent in the case of oil and gas properties)" after "50 percent". (b) CONFORMING AMENDMENTS.— (1) Subparagraph (C) of section 613A(c)(7) is amended by striking "50-percent" and inserting "taxable income". (2) Section 614(d) is amended by striking "50 percent" and inserting "taxable income". 26 USC 613 note. (c) EFFECTIVE DATE. —The amendments made by this section shall apply to taxable years beginning after December 31, 1990. SEC. 11523. INCREASE IN PERCENTAGE DEPLETION ALLOWANCE FOR MARGINAL PRODUCTION. (a) IN GENERAL. — Paragraph (6) of section 613A(c) is amended to read as follows: "(6) OIL AND NATURAL GAS PRODUCED FROM MARGINAL PROP- ERTIES. — "(A) IN GENERAL.—Except as provided in subsection (d) and subparagraph (B), the allowance for depletion under section 611 shall be computed in accordance with section 613 with respect to— "(i) so much of the taxpayer's average daily marginal production of domestic crude oil as does not exceed the taxpayer's depletable oil quantity (determined without regard to paragraph (3)(A)(ii)), and "(ii) so much of the taxpayer's average daily marginal production of domestic natural gas as does not exceed the taxpayer's depletable natural gas quantity (determined without regard to paragraph (3)(A)(ii)), and the applicable percentage shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section. "(B) ELECTION TO HAVE PARAGRAPH APPLY TO PRO RATA PORTION OF MARGINAL PRODUCTION. —I f the taxpayer elects to have this subparagraph apply for any taxable year, the rules of subparagraph (A) shall apply to the average daily marginal production of domestic crude oil or domestic natural gas of the taxpayer to which paragraph (1) would have applied without regard to this paragraph. " (C) APPLICABLE PERCENTAGE. — For purposes of subparagraph (A), the term 'applicable percentage' means the percentage (not greater than 25 percent) equal to the sum of— "(i) 15 percent, plus

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