Page:United States Statutes at Large Volume 89.djvu/113

 PUBLIC LAW 94-12—MAR. 29, 1975

89 STAT. 53

preceding sentence, the term 'significant ownership interest' "Significant ownership means— " (A) with respect to any corporation, 5 percent or more in interest." value of the outstanding stock of such corporation, " (B) with respect to a partnership, 5 percent or more interest in the profits or capital of such partnership, and " (C) with respect to an estate or trust, 5 percent or more of the beneficial interests in such estate or trust. " (4) CERTAIN REFINERS EXCLUDED.—If the tax p a y e r or a related

person engages in the refining of crude oil, subsection (c) shall not apply to such tax p a y e r if on any d a y during the taxable year the refinery runs of the taxpayer and such person exceed 50,000 barrels. " (e) DEFINITIONS. — For purposes of this section— " (1) CRUDE OIL.—The term 'crude oil' includes a n a t u r a l gas liquid recovered from a gas well in lease separators or field facilities. " (2) NATURAL GAS.—The term 'natural gas' means any product (other than crude oil) of an oil or gas well if a deduction for depletion is allowable under section 611 with respect to such 26 USC 611. product. " (3) DOMESTIC.—The term 'domestic' refers to production from an oil or gas well located in the United States or in a possession of the United States. " (4) BARREL.—The term 'barrel' means 42 United States gallons." (b) T E C H N I C A L AMENDMENTS. —

(1) Section 613(d) (relating to percentage depletion) amended to read as follows:

is 26 USC 613.

" (d) D E N I A L OF PERCENTAGE DEPLETION I N CASE OF O I L AND G A S

W E L L S. — E x c e p t as provided in section 613A, in the case of any oil or Ante, p. 47. gas well, the allowance for depletion shall be computed without reference to this section." (2) Section 613_(b) is amended— (A) by striking out subparagraph (A) of paragraph (1) and redesignating subparagraph s (B) and (C) as subparagraph s (A) and (B), respectively, (B) by striking out " (1)(C) " each place it appears in paragraph s (3), (4), and (7) and inserting in lieu thereof " (1)(B) ", and (C) by amending the last sentence of paragraph (7) — (i) by striking out " o r " at the end of clause (A), (ii) by striking out the period at the end of clause (B) and inserting in lieu thereof "; or", and (iii) by adding a t the end thereof the following new clause: " (C) oil and gas wells." (3) Section 703(a)(2) (relating to deductions not allowable 26 USC 703,. to a partnership) is amended by striking out " and " a t the end of subparagraph (E), by striking out the period at the end of subparagraph (F) and inserting in lieu ", and ", and by a d d i n g at the end thereof the following new subparagraph: " (G) the deduction for depletion under section 611 with respect to oil and gas production subject to the provisions of section 6 1 3 A (c). " ^ (c) EFFECTIVE DATES.—The amendments made by this section shall 26 USC 613A take effect on January 1, 1975, and shall apply to taxable years ending note. after December 31, 1974.

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