• Energy Tax Facts
  • 9 Apr 13

Welcome to Energy Tax Facts

Welcome to the Energy Tax Facts website, brought to you by the Independent Petroleum Association of America (IPAA). This website is part of a broader education and outreach campaign to help people understand the facts about US energy taxes. Energy Tax Facts will focus on the various tax issues facing America’s independent oil and natural gas producers — men and women who develop 95 percent of America’s wells, and produce 68 percent of domestic oil and 82 percent of domestic natural gas.

Despite misplaced rhetoric of “tax-breaks” and “giveaways,” America’s oil and natural gas producers do not receive a single dollar in government subsidies. In fact, deductions provided to independent oil and natural gas producers are no different than those provided to technology companies for research and development, farmers for fertilizer, and manufacturers for steel and pipe. Unfortunately, this reality gets lost in the political rhetoric and finger-pointing that is all too common in the US conversation about energy taxes. This website is here to set the record straight.

These historic and vital provisions – like those provided to almost every American manufacturer – are crucial to the continued operation of America’s independent producers, businesses with an average of just twelve employees each. Things like intangible drilling costs, percentage depletion, and passive loss exception have been a part of the U.S. tax code for decades. In different ways, these provisions help to reduce the risk of investing in American energy production – a capitally intensive process with no guaranteed success from drilling.

Just take it from David R. Hill, a second generation oil and natural gas producer in Southeast, Ohio. Or Jerry James of Artex Oil, a small independent that has grown and created jobs thanks to investment into American energy development. Without the appropriate tax code, these companies and the jobs, tax revenues, and secure domestic energy they provide would disappear.

We encourage you to look around the site and return often, sign up for campaign updates, and follow us on Facebook. After all, these are the real energy tax facts, and we look forward to keeping the nation informed about the important benefits these provisions help to provide for the American people.