; and (3) periodically update such best practices, as appropriate. . IV Repeal Certain Tax Preferences for Energy and Natural Resource-Based Industries 4001. No expensing for intangible drilling and development costs for oil and gas wells (a) In general Section 263(c) of the Internal Revenue Code of 1986 is amended— (1) in the second sentence, by striking are deductible and inserting would, but for the last sentence of this subsection, be deductible , and (2) by adding at the end the following new sentence: In the case of any taxable year beginning after December 31, 2017, this subsection shall not apply with respect to any oil or gas well. . (b) Conforming amendment (1) In general Section 263(i) of such Code is amended by striking an oil, gas, or geothermal and inserting a geothermal . (2) Effective date The amendment made by this section shall apply with respect to taxable years beginning after December 31, 2017. 4002. Repeal of percentage depletion (a) In general Part I of subchapter I of chapter 1 of the Internal Revenue Code of 1986 is amended by striking sections 613 and 613A (and by striking the items relating to such sections in the table of sections for such part). (b) Conforming amendments (1) (A) Such part is amended by redesignating section 614 as section 613 (and, in the table of sections for such part, by redesignating the item relating to section 614 as an item relating to section 613). (B) Clauses (iv) and (v) of section 465(c)(2)(A) are each amended by striking section 614 and inserting section 613 . (C) Section 1016(e) is amended by striking section 614 and inserting section 613 . (D) Section 1254(a)(3) is amended by striking section 614 and inserting section 613 . (2) Section 45(c)(4) is amended to read as follows: (4) Geothermal energy (A) In general The term geothermal energy means energy derived from a geothermal deposit. (B) Geothermal deposit The term geothermal deposit means a geothermal reservoir consisting of natural heat which is stored in rocks or in an aqueous liquid or vapor