Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill modifies the rules for percentage depletion for oil and gas wells, aiming to provide greater tax benefits to small oil and gas producers and those operating in rural areas. Specifically, it adjusts the percentage depletion rate based on the price of crude oil and includes an inflation adjustment. The bill also changes how oil quantity is calculated and removes a limitation on taxable income for these wells.
Key provisions
- Increases the percentage depletion rate for marginal oil and gas properties.
- Adjusts the percentage depletion rate based on the price of crude oil, increasing the rate when oil prices exceed $70 per barrel.
- Includes an inflation adjustment to the $70 price threshold, increasing it annually based on the Producer Price Index (PPI).
- Changes the calculation of the amount of oil considered depletable from 1,000 to 2,000 barrels.
- Removes a limitation on taxable income for depletion allowances.
- Applies these changes starting December 31, 2026.
Who is affected
- Oil and gas producers
- Small oil and gas companies
- Rural communities
- Taxpayers involved in oil and gas extraction
Notable changes
- Increases the percentage depletion rate for marginal oil and gas wells.
- Introduces an inflation adjustment to the reference price for crude oil.
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
8 on record
Primary sponsor
Cosponsors
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours