A bill to provide tax incentives to encourage production of oil and gas within the United States, and for other purposes.
TABLE OF CONTENTS:
Title I: Production Credit
Title II: Modifications To Percentage Depletion
Title III: Other Provisions
Domestic Oil and Gas Production Tax Incentive Act - Title I: Production Credit - Amends the Internal Revenue Code to allow a business tax credit for producing crude oil and natural gas from new wells and marginal wells.
Provides: (1) a formula for reducing such credit in years in which oil and gas prices increase; and (2) an inflation adjustment for such formula. Allows such credit against the regular and minimum tax.
Title II: Modifications to Percentage Depletion - Repeals the net income limitation on percentage depletion for oil and gas properties.
Makes all marginal production of domestic crude oil or domestic natural gas eligible for percentage depletion.
Revises the percentage depletion rate for such marginal production.
Title III: Other Provisions - Allows the election to treat geological and geophysical expenses incurred in connection with the exploration for, or development of, domestic oil or gas as expenses which are not chargeable to capital account.
Makes the enhanced oil recovery credit applicable to secondary recovery methods. Allows such credit against the minimum tax.
Allows the election of an optional five-year writeoff of intangible drilling costs for minimum tax purposes.
Referred to the House Committee on Ways and Means.
Introduced in Senate
Sponsor introductory remarks on measure. (CR S2844)
Read twice and referred to the Committee on Finance.
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