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  • Energy Tax Facts
  • 22 Jul 13

Oil and Gas Journal: Study details impacts of repealing IDC deduction

Repealing the federal tax provision allowing oil and gas producers to deduct certain intangible drilling costs (IDCs) effective Jan. 1, 2014, would cost 190,000 US jobs in the first year and would cut drilling investments in the US by $407 billion over 10 years, a new study commissioned by the American Petroleum Institute found. “The effects of repealing the IDC deduction would be significant and immediate,” Stephen Comstock, API’s tax and accounting policy director, told reporters July 11 in a teleconference. “The industry would be forced to make fewer investments, drill fewer wells, employ fewer Americans, and produce less of the energy that fuels our economy.”