• Energy Tax Facts
  • 29 May 21

Biden Budget Proposal Repeals Industry Tax Provisions

President Biden issued his first full budget proposal today, a 1,700-page plan detailing a dramatically increase the size and scope of the federal government with more than $6 trillion in spending over the coming fiscal year.

Vast new spending would be paired with significant tax increases on corporations and the wealthy. The budget includes the same changes to oil and natural gas industry tax provisions that were discussed in last week’s Senate Committee on Finance hearing on the Clean Energy for America ActAmong the provisions repealed are expensing of intangible drilling costs, percentage depletion for oil and natural gas wells and the enhanced oil recovery credit.

Like most presidential budgets, the documents will be largely aspirational. Congress controls the government’s purse strings, and with Republicans almost uniformly opposed to most of Biden’s spending and all of his tax increases, he and allied Democrats face difficulty enacting any of it into law. Lawmakers from both sides have made clear they’re unlikely to adopt Biden’s proposals in full.