Orrin Hatch: “The bill we are considering today contains a provision in section 305 providing for some tax relief for refiners whose…”

“The bill we are considering today contains a provision in section 305 providing for some tax relief for refiners whose costs will increase as a result of the repeal of the ban on oil exports. This provision permits refiners to modify the calculation of production activities income to lessen the impact of high transportation costs in bringing crude oil to their refineries. The provision permits adjusting such activities income for properly allocable transportation costs. Many times transportation costs are embedded within an invoice and not broken out as a separate line item, such as included in the delivered price of crude. These are clearly transportation costs intended to be taken into account for purposes of this section.”