• Energy Tax Facts
  • 4 Dec 13

Oil and Gas Journal: Baucus Circulates Proposal To Change Federal Oil, Gas Taxes

US Senate Finance Committee Chairman Max Baucus (D-Mont.) released a federal tax reform discussion draft that would make intangible drilling costs, tertiary injectant expenses, and geological and geophysical expenses “qualified extraction expenses” similar to research and experiment outlays. It also would repeal the percentage depletion allowance, another federal tax provision that independent producers consider essential to operations. The proposed oil and gas tax treatment changes are part of a broader document of suggested cost recovery and tax accounting reforms that Baucus released on Nov. 21.