Page:United States Statutes at Large Volume 104 Part 2.djvu/896

 104 STAT. 1388-488 PUBLIC LAW 101-508—NOV. 5, 1990 PART IV—MINIMUM TAX TREATMENT SEC. 11531. SPECIAL ENERGY DEDUCTION FOR MINIMUM TAX. (a) IN GENERAL.— Section 56 (relating to adjustments in computing alternative minimum taxable income) is amended by adding at the end thereof the following new subsection: "(h) ADJUSTMENT BASED ON ENERGY PREFERENCES. — "(1) IN GENERAL. — In computing the alternative minimum taxable income of any taxpayer other than an integrated oil company for any taxable year beginning after 1990, there shall be allowed as a deduction an amount equal to the lesser of— "(A) the alternative tax energy preference deduction, or "(B) 40 percent of alternative minimum taxable income. " (2) PHASE-OUT OF DEDUCTION AS OIL PRICES INCREASE. — The amount of the deduction under paragraph (1) (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such amount as— "(A) the excess of the reference price of crude oil for the calendar year preceding the calendar year in which the taxable year begins over $28, bears to "(B) $6. For purposes of this paragraph, the reference price for any calendar year shall be determined under section 29(d)(2)(C) and the $28 £unount under subparagraph (A) shall be adjusted at the same time and in the same manner as under section 43(b)(3). "(3) ALTERNATIVE TAX ENERGY PREFERENCE DEDUCTION. —For purposes of paragraph (1), the term 'alternative tax energy preference deduction' means an amount equal to the sum of— "(A) in the case of the intangible drilling cost preference, an amount equal to the sum of^ "(i) 75 percent of the portion of the intangible drilling cost preference attributable to qualified exploratory costs, plus "(ii) 15 percent of the excess (if any) of— "(I) the intangible drilling cost preference, over "(II) the portion of the intangible drilling cost preference attributable to qualified exploratory costs, plus "(B) 50 percent of the marginal production depletion preference. " (4) INTANGIBLE DRILLING COST PREFERENCE. —For purposes of this subsection— "(A) IN GENERAL.— The term 'intangible drilling cost pref- erence' means the amount by which alternative minimum taxable income would be reduced if it were computed without regard to section 57(a)(2) and subsection (g)(4)(D)(i)- " (B) PORTION ATTRIBUTABLE TO QUALIFIED EXPLORATORY COSTS.— For purposes of subparagraph (A), the portion of the intangible drilling cost preference attributable to qualified exploratory costs is an amount which bears the same ratio to the intangible drilling cost preference as— "(i) the qualified exploratory costs of the taxpayer for the taxable year, bear to

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