Bill > HR8034

This bill, titled the "Protecting America’s Small Oil and Gas Producers and Rural Jobs Act," modifies certain rules related to percentage depletion for oil and gas wells, which is a tax deduction that allows producers to recover the cost of extracting natural resources. Specifically, it adjusts how the "applicable percentage" for marginal properties (less productive wells) is calculated, basing it on a $70 reference price for crude oil, with adjustments for inflation after 2027 using the Producer Price Index (PPI) for Drilling Oil and Gas Wells. The bill also removes the taxable income limitation for depletion allowances on these marginal properties and doubles the depletable oil quantity from 1,000 barrels to 2,000 barrels, all of which will take effect for taxable years beginning after December 31, 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/8034/all-info