A bill to amend the Internal Revenue Code of 1986 to provide incentives for the removal of crude oil and natural gas through enhanced oil recovery techniques so as to add as much as 10 billion barrels to the United States reserve base, to extend the production of certain stripper oil and gas wells, and for other purposes.
Enhanced Oil and Gas Recovery Tax Act of 1989 - Amends the Internal Revenue Code to set a depletion allowance of 27.5 percent in connection with domestic oil and natural gas recovered through enhanced recovery techniques. Reduces this percentage (but not below 15 percent) as the average annual removal price during the calendar year exceeds $30 (indexed for inflation). Terminates this provision with respect to production after 2009.
Increases from 50 percent to 100 percent the net income limitation on percentage depletion in connection with incremental tertiary oil or natural gas.
Makes the alternative minimum tax preferences for percentage depletion and intangible drilling costs in connection with oil and gas removed through enhanced recovery methods inapplicable whenever the average annual removal price for the year is less than $30 (indexed for inflation). Terminates this provision with respect to production or costs after 2009.
Permits a ten percent income tax credit for research to discover or improve tertiary recovery methods for domestic crude oil or natural gas.
Referred to the House Committee on Ways and Means.
Referred to the House Committee on Ways and Means.
Introduced in Senate
Read twice and referred to the Committee on Finance.
Subcommittee on Energy and Agricultural Taxation. Hearings held. Hearings printed: S.Hrg. 101-620.
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