LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.

SEC. 401. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.(a) In General.—Section 199(d) is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph:“(9) Special rule for taxpayers with oil related qualified production activities income.—“(A) In general.—If a taxpayer has oil related qualified production activities income for any taxable year beginning after 2009, the amount otherwise allowable as a deduction under subsection (a) shall be reduced by 3 percent of the least of—“(i) the oil related qualified production activities income of the taxpayer for the taxable year,“(ii) the qualified production activities income of the taxpayer for the taxable year, or“(iii) taxable income (determined without regard to this section).“(B) Oil related qualified production activities income.—For purposes of this paragraph, the term ‘oil related qualified production activities income’ means for any taxable year the qualified production activities income which is attributable to the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof during such taxable year.“(C) Primary product.—For purposes of this paragraph, the term ‘primary product’ has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.”.(b) Conforming Amendment.—Section 199(d)(2) (relating to application to individuals) is amended by striking “subsection (a)(1)(B)” and inserting “subsections (a)(1)(B) and (d)(9)(A)(iii)”.(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2008.122 STAT. 3852