EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCE.

SEC. 11501. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCE. (a) Extension.— Section 29(f)(1) of the Internal Revenue Code of 1986 (relating to application of section) is amended— (1) by striking “1991” in clauses (i) and (ii) of subparagraph (A) and inserting “1993”, and (2) by striking “2001” in subparagraph (B) and inserting “2003”. (b) Modification With Respect to Gas From Tight Formations.— (1) In general.— Subparagraph (B) of section 29(c)(2) of such Code is amended to read as follows: “(B) Special rules for gas from tight formations.— The term ‘gas produced from a tight formation’ shall only include gas from a tight formation— “(i) which, as of April 20, 1977, was committed or dedicated to interstate commerce (as defined in section 2(18) of the Natural Gas Policy Act of 1978, as in effect on the date of the enactment of this clause), or “(ii) which is produced from a well drilled after such date of enactment.” (2) Effective date.— The amendment made by paragraph (1) shall apply to gas produced after December 31, 1990. (c) Coordination With Enhanced Oil Recovery Credit.— (1) In general.— Section 29(b) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: “(5) Credit reduced for enhanced oil recovery credit.— The amount allowable as a credit under subsection (a) with respect to any project for any taxable year (determined after application of paragraphs (1), (2), (3), and (4)) shall be reduced by the excess (if any) of— “(A) the aggregate amount allowed under section 38 for the taxable year and any prior taxable year by reason of 104 STAT. 1388–480any enhanced oil recovery credit determined under section 43 with respect to such project, over “(B) the aggregate amount recaptured with respect to the amount described in subparagraph (A) under this paragraph for any prior taxable year.” (2) Effective date.— The amendment made by paragraph (1) shall apply to taxable years beginning after December 31, 1990.