summary
Introduced
01/23/2025
01/23/2025
In Committee
01/23/2025
01/23/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To amend the Internal Revenue Code of 1986 to allow intangible drilling and development costs to be taken into account when computing adjusted financial statement income.
AI Summary
This bill amends the Internal Revenue Code to modify how intangible drilling and development costs (IDDCs) are calculated for tax purposes, specifically when computing adjusted financial statement income. Currently, certain expenses related to oil and gas exploration and development are treated differently for financial reporting and tax calculations. The bill allows companies to more closely align their tax deductions for depreciation and intangible drilling expenses with how these costs are reported on their financial statements. Specifically, the bill permits taxpayers to reduce their adjusted financial statement income by depreciation deductions and expenses related to drilling and development, to the extent these amounts are already deducted in computing taxable income. This change would apply to taxable years beginning after December 31, 2025, giving businesses time to prepare for the new accounting method. The goal appears to be providing more consistent tax treatment for domestic energy production companies and potentially incentivizing continued investment in oil and gas exploration by simplifying the tax accounting process.
Committee Categories
Budget and Finance
Sponsors (44)
Mike Carey (R)*,
Mark Amodei (R),
Brian Babin (R),
Troy Balderson (R),
Stephanie Bice (R),
John Carter (R),
Tom Cole (R),
Dan Crenshaw (R),
Henry Cuellar (D),
Warren Davidson (R),
Jake Ellzey (R),
Ron Estes (R),
Gabe Evans (R),
Pat Fallon (R),
Craig Goldman (R),
Vicente Gonzalez (D),
Kevin Hern (R),
Wesley Hunt (R),
Darin LaHood (R),
Nick Langworthy (R),
Bob Latta (R),
Mike Lawler (R),
Nicole Malliotakis (R),
Tracey Mann (R),
Addison McDowell (R),
Dan Meuser (R),
Carol Miller (R),
Mary Miller (R),
Max Miller (R),
Cory Mills (R),
Nathaniel Moran (R),
Greg Murphy (R),
Dan Newhouse (R),
August Pfluger (R),
Michael Rulli (R),
Greg Steube (R),
David Taylor (R),
Claudia Tenney (R),
G.T. Thompson (R),
Beth Van Duyne (R),
Marc Veasey (D),
Randy Weber (R),
Roger Williams (R),
Ryan Zinke (R),
Last Action
Referred to the House Committee on Ways and Means. (on 01/23/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/662/all-info |
BillText | https://www.congress.gov/119/bills/hr662/BILLS-119hr662ih.pdf |
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