• Energy Tax Facts
  • 21 Apr 21

Senate Finance Committee Bill Would Eliminate Expensing of IDCs, Percentage Depletion, EOR credits and more

Today, Senate Finance Committee Chair Ron Wyden, D-Ore., and 24 colleagues introduced the Clean Energy for America Act, legislation “to overhaul the federal energy tax code, create jobs and combat climate change.”
According the Senators, “the current system of energy incentives is overly complex and far less effective than it should be, with more than 40 different energy tax incentives, including permanent subsidies for Big Oil… The Clean Energy for America Act moves in a different direction, making the climate crisis and reducing carbon emissions the lodestar of America’s energy tax policy.”
From the section-by-section summary: “The bill repeals preferential incentives for fossil fuel companies, including expensing of intangible drilling costs, percentage depletion, deductions for tertiary injectants, and credits for enhanced oil recovery, marginal oil wells, coal gasification, and advanced coal projects.
“The bill also reinstates the current taxation of multinational oil companies’ non-extraction income and ensures multinational oil companies are not specially exempted from the 2017 tax law’s global minimum tax. It also repeals the special treatment of fossil fuels under the publicly traded partnership rules, putting them on equal footing with other energy companies and closing down the “Lone Star Loophole.”
Linked to here are the bill textsection-by-section summary, and one page summary.