S. 5350 — American Energy Independence and Tax Fairness Act

This section includes foreign oil and gas extraction income in a United States shareholder’s net CFC tested income for purposes of calculating global intangible low-taxed income (GILTI) under section 951A. The change applies to taxable years of foreign corporations beginning after the date of enactment, and to taxable years of United States shareholders in which or with which such years end.

This section expands the definitions of foreign oil and gas extraction income and foreign oil related income under section 907 of the Internal Revenue Code to include income derived from the extraction or processing of minerals from oil shale or tar sands. The change applies to taxable years beginning after the date of enactment.

This section denies foreign tax credits for amounts paid or accrued by dual capacity taxpayers on combined foreign oil and gas income if the foreign country or possession lacks a generally applicable income tax or if the payment exceeds the amount that would be due under such a tax. The rule applies to taxable years of foreign corporations beginning after December 31, 2026.