Tax Reform Act

[AI summary unavailable — showing source text] Tax Reform Act - Terminates the special tax treatment accorded Domestic International Sales Corporations under the Internal Revenue Code for any taxable year after December 31, 1974. Repeals the allowance for percentage depletion in the case of foreign oil and gas wells. Authorizes a taxpayer to revoke his election to deduct as expenses intangible drilling and development costs in the case of foreign oil and gas wells for taxable years after December 31, 1973. Provides a formula for the reduction of the allowable credit for foreign taxes attributable to foreign oil and gas extraction income. Defines the terms "foreign oil and gas extraction income" and "foreign oil related income" for the purposes of this Act. Revises the formula for the recapture of foreign oil-related loss. Provides for the phasing out of the percentage depletion allowance by reducing the present 22 percent rate to 8 percent for taxable year 1975 and to 0 percent for the taxable years thereafter, except that the taxpayer may elect a 15 percent depletion allowance with respect to that part of his average daily production of domestic crude oil as does not exceed 3,000 barrels. Provides that only one such allowance …