Protecting America’s Small Oil and Gas Producers and Rural Jobs 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 the rules for how oil and gas producers can deduct expenses related to the depletion of oil and gas wells. Specifically, it adjusts the percentage depletion rate based on the price of crude oil, potentially increasing the amount that can be deducted for marginal properties. It also modifies the calculation of the quantity of oil considered depletable and removes a limitation on the amount of depletion that can be claimed.
Key provisions
- Increases the maximum percentage depletion rate for oil and gas wells, tied to the price of crude oil.
- Introduces a PPI adjustment to further increase the potential depletion rate.
- Changes the minimum depletable oil quantity from 1,000 to 2,000 barrels.
- Removes a limitation on the amount of depletion that can be deducted.
- Applies these changes beginning in 2027.
Who is affected
- Oil and gas producers
- Small oil and gas companies
- Rural communities with oil and gas industries
Notable changes
- Adjusts the percentage depletion rate based on crude oil prices.
- Includes a PPI adjustment to further increase depletion deductions.
- Increases the minimum quantity of oil considered depletable.
Bill text
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Sponsors
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13 on record
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Cosponsors
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