Lets Companies Subtract Well Drilling Costs
S224-119 · Introduced Jan 23, 2025
Why it matters
Large companies that drill wells could owe less under the 15% corporate minimum tax. The bill would not change regular corporate tax rates.
What it does
- Lets companies subtract certain well drilling and development costs when figuring the corporate minimum tax
- Also lets companies subtract related depletion expenses from that same income figure
- Applies to oil, gas, and geothermal wells in the United States
In committee
Next: a committee vote
- Introduceddone
- Committeecurrent step
- Senatenot yet
- Housenot yet
- Presidentnot yet
About this bill
Would let corporations subtract certain drilling and development costs for oil, gas, and geothermal wells when calculating the 15% corporate minimum tax.
Promoting Domestic Energy Production Act
Perspectives
💬 The case for
Energy producers would likely say the change treats drilling costs fairly. It would help companies keep investing in domestic wells.
💬 The case against
Tax fairness groups would likely say the change lets big companies pay less tax. They may argue it works against the minimum tax's purpose.
Sponsored by
Sponsor details for this federal bill are at the source link.
News
Loading coverage…