HR 8034
Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill 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.
Fiscal impact
null
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yoursRead the latest version inline or switch to a previous version.
119th CONGRESS — 2d Session
H. R. 8034
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to modify certain percentage depletion rules with respect to oil and gas wells.
This Act may be cited as the Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
.
15 percent, plus
1 percentage point for each whole dollar by which $70 exceeds the reference price for crude oil for the calendar year preceding the calendar year in which the taxable year begins.
In the case of any taxable year beginning in a calendar year after 2027, the $70 amount in clause (i)(II) shall be increased by an amount equal to—
such dollar amount, multiplied by
the PPI adjustment factor for such calendar year.
the PPI for the preceding calendar year, exceeds
the PPI for calendar year 2026.
For purposes of this paragraph, the term reference price means, with respect to any calendar year, the reference price determined for such calendar year under section 45K(d)(2)(C).
Section 613A(c)(6) of such Code is amended by adding at the end the following new subparagraph:
subsection (d)(1) shall not apply, and
the second sentence of subsection (a) of section 613 shall not apply.
Section 613A(c)(3)(B) of such Code is amended by striking 1,000 barrels
and inserting 2,000 barrels
.
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.