- Energy Tax Facts
- 15 Apr 13
IPAA Submits Comments to Energy Tax Working Group
On Friday, the Independent Petroleum Association of America (IPAA) submitted comments to Congressmen Kevin Brady (R-TX) and Mike Thompson (D-CA), members of the House Ways & Means Energy Tax Reform Working Group, noting the important role of the tax code in affecting the future exploration and production of America’s oil and natural gas resources.
From IPAA’s comments:
“The federal government can enhance or impede the development of American oil and natural gas. Changes to oil and natural gas tax provisions would have an immediate impact. If Congress eliminates provisions such as the immediate expensing of intangible drilling costs, independent producers would drill 25 to 40 percent fewer wells. Congress has a simple choice, it can promote American oil and natural gas production or Congress can harm oil and natural gas production – treatment of oil and natural gas tax provisions are central to determining which path America follows.”
“As Congress contemplates these questions, it should recognize that to date, there have been no proposed changes to oil and natural gas tax provisions – from the administration or Congress — that would not result in a tax increase for America’s independent natural gas and oil producers. Simply put, increased taxes on America’s independent producers will decrease production of oil and natural gas, as well as investment, in the United States.”
“The Obama administration’s budget request – and recurring advocacy statements on an almost daily basis – would strip essential capital from new American natural gas and oil investment by radically raising taxes on American production. American natural gas and oil production would be reduced. It runs counter to the administration’s clean energy and energy security objectives.”
“As the Committee considers policies related to America’s oil and natural gas resources, it must recognize that federal actions can dramatically affect the future of the nation’s energy security and the nation’s ability to meet the potential for its economic growth. IPAA urges the Committee to support those actions that enhance that future and reject the ill-advised calls for adverse restrictions to capital.”
Read IPAA’s full comments on the importance of these vital tax provisions and how they support American energy development HERE.