Bill > HR383

This bill aims to eliminate various tax subsidies and benefits for oil and gas companies by amending the Internal Revenue Code. Specifically, the bill would make several key changes: extend the amortization period for geological and geophysical expenditures from 24 months to 7 years, repeal tax credits for marginal wells and enhanced oil recovery, eliminate the ability to deduct intangible drilling and development costs, remove percentage depletion allowances for oil and gas wells, repeal the deduction for tertiary injectants, end the special passive loss limitation exception for oil and gas working interests, exclude oil and gas activities from qualified business income deductions, prohibit major integrated oil companies from using last-in, first-out (LIFO) accounting methods, and modify foreign tax credit rules for dual capacity taxpayers. Additionally, the bill clarifies the definition of crude oil for excise tax purposes to explicitly include tar sands, bitumen, and oil derived from kerogen-bearing sources. Most provisions would take effect for taxable years beginning after December 31, 2024, with the aim of reducing tax benefits that have traditionally supported the fossil fuel industry.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/383/all-info