• Energy Tax Facts
  • 13 May 21

More than 50 Lawmakers Urge Pelosi to Consider Impacts When Targeting Tax Treatment of O&G Industry

Today Rep. Jodey Arrington (R-TX)Whip Steve Scalise and more than 50 other lawmakers wrote to Speaker Pelosi on tax treatment of the oil and natural gas industry.
“It’s one thing for policies to accelerate investment activity or production of certain products, but it is an entirely different matter to write laws that would punish a particular industry, especially one that is so fundamental to our economic growth and national security,” reads the letter. 
The letter authors discuss the effort to remove essential provisions like Intangible Drilling Costs (IDCs) and Percentage Depletion. “IDCs are not credits, loopholes, or subsidies. They are ordinary and necessary deductions…  the independent oil and gas industry, which accounts for 80 percent of our nation’s oil production and 90 percent of its natural gas production, would be hit hardest by the elimination of this provision. IDCs often represent 60 to 80 percent of total production costs and repealing them could result in the loss of over a quarter million jobs by 2023.” 
Read the full letter here