Transit Commuter Credit Act of 1998

TABLE OF CONTENTS:

Title I: Credit for Public Transportation Commuting Expenses

Title II: Modification to Treatment of Foreign Oil and Gas

Income

Title III: Limitations on Payments Under Defense Contracts

Title IV: Repeal of Certain Incentives for Oil and Gas

Exploration and Development and for Mining

Title V: Repeal of Exclusion for Citizens or Residents of

United States Living Abroad

Transit Commuter Credit Act of 1998 - Title I: Credit for Public Transportation Commuting Expenses - Amends the Internal Revenue Code to provide a credit for 20 percent ($150 maximum) of an individual's employment or education related public transportation commuting expenses.

Title II: Modifications to Treatment of Foreign Oil and Gas Income - Treats certain taxes paid or accrued to a foreign country with respect to foreign oil and gas income as not creditable for purposes of the foreign tax credit.

Treats foreign oil and gas extraction income, and foreign oil related income as separate income categories. Eliminates such categories' exclusion from income for specified purposes. (Changes references to foreign base company oil related income to foreign oil and gas income.)

Title III: Limitations on Payments Under Defense Contracts - Prohibits use of Department of Defense funds to pay restructuring costs associated with the merger or acquisition of a Department contractor.

Amends the National Defense Authorization Act for Fiscal Year 1995 to extend a specified annual contractor restructuring reporting requirement. Sets forth additional information requirements for such report and a related report by the Comptroller General.

Amends Federal law to set forth specified compensation limitations for Department contracts.

Title IV: Repeal of Certain Incentives for Oil and Gas Exploration and Development and for Mining - Amends the Internal Revenue Code to repeal: (1) expensing of intangible drilling and development costs for oil and gas wells and geothermal wells; (2) expensing of mine development and exploration costs; (3) percentage depletion for mines and wells, including oil and gas wells; and (4) the enhanced oil recovery credit.

Title V: Repeal of Exclusion for Citizens or Residents of United States Living Abroad - Amends the Internal Revenue Code to repeal the foreign earned income and housing allowance gross income exclusion for U.S. citizens and residents abroad.