American Energy Independence and Tax Fairness Act

The American Energy Independence and Tax Fairness Act amends the Internal Revenue Code to broaden the definition of foreign oil and gas extraction income to explicitly include revenues from oil shale and tar sands. It requires that this expanded category of income be included in the net tested income of controlled foreign corporations, which affects how U.S. shareholders calculate their tax liabilities on these earnings. Additionally, the bill introduces specific rules for "dual capacity taxpayers" - entities that both pay taxes to a foreign government and receive economic benefits from it - by limiting the foreign tax credit for payments made to countries without generally applicable income taxes or for amounts exceeding standard tax rates. These provisions apply to taxable years beginning after the date of enactment, with the dual capacity taxpayer rules taking effect for years starting after December 31, 2026.