Promoting Domestic Energy Production Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill changes how corporations calculate their minimum tax liability. It allows companies involved in domestic oil, gas, and geothermal energy production to reduce their adjusted financial statement income by certain intangible costs associated with drilling and development. These reductions can include depreciation and depletion expenses, which are currently deductible for regular tax purposes. The changes will take effect starting in 2026.
Key provisions
- Allows corporations to deduct intangible drilling and development costs.
- Reduces adjusted financial statement income by depreciation deductions.
- Reduces adjusted financial statement income by depletion expenses.
- Specifically applies to oil, gas, and geothermal well drilling and development.
- The changes will apply to taxable years beginning after December 31, 2025.
Who is affected
- Corporations
- Oil and gas industry
- Geothermal energy industry
- Taxpayers
Notable changes
- Expands the types of costs that can be deducted to calculate the alternative minimum tax.
- Introduces a specific provision for intangible drilling and development costs.
Bill text
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Sponsors
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44 on record
Primary sponsor
Cosponsors
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