TREATMENT OF TRANSPORTATION COSTS OF INDEPENDENT REFINERS.

SEC. 305. TREATMENT OF TRANSPORTATION COSTS OF INDEPENDENT REFINERS. (a) [26 U.S.C. 199] In general.—Paragraph (3) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: “(C) Transportation costs of independent refiners.— “(i) In general.—In the case of any taxpayer who is in the trade or business of refining crude oil and who is not a major integrated oil company (as defined in section 167(h)(5)(B), determined without regard to clause (iii) thereof) for the taxable year, in computing oil related qualified production activities income under subsection (d)(9)(B), the amount allocated to domestic production gross receipts under paragraph (1)(B) for costs related to the transportation of oil shall be 25 percent of the amount properly allocable under such paragraph (determined without regard to this subparagraph). “(ii) Termination.—Clause (i) shall not apply to any taxable year beginning after December 31, 2021.” . (b) [26 U.S.C. 199 note] Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2015.