Marginal Energy Producers Incentives Act of 1989

Marginal Energy Producers Incentives Act of 1989 - Amends the Internal Revenue Code with respect to the oil and natural gas allowance to allow a tax deduction to the transferee in the case of a transfer of proven oil or gas property.

Increases from 50 percent to 100 percent (thus removing) the net income limitations on the use of such depletion allowances.

Sets a percentage depletion allowance of 15 percent for the marginal production of domestic crude oil or natural gas by independent producers.

Makes the alternative minimum tax preference for percentage depletion inapplicable to such marginal production.