A bill to amend the Internal Revenue Code of 1986 to encourage the continued exploration for and production of domestic oil and natural gas resources.
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 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.
Referred to the House Committee on Ways and Means.
Introduced in Senate
Read twice and referred to the Committee on Finance.
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