Full Title: The Future of Energy Tax Policy
Author(s): Jonathan Barry Forman and Roberta F. Mann
Publisher(s): American Bar Association
Publication Date: 01/2015

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Description (excerpt):

Energy policy is always a major concern for Congress. Over the years, Congress has enacted lots of legislation related to energy production (including oil and gas and renewables) and conservation. Energy tax policy involves using taxes and tax expenditures to alter the allocation or configuration of energy resources and their use. Of course, decisions about energy
tax policy in the United States are political decisions that embody compromises between economic and political goals. This paper offers some background on some of the most important energy tax policy issues that the 114th Congress will consider.

Oil and Gas Tax Preferences. The Internal Revenue Code includes a number of tax provisions that provide favorable treatment to investment in oil and gas production projects, including expensing of intangible drilling costs, percentage depletion, and accelerated amortization for geological and geophysical expenses. The Obama Administration has repeatedly indicated that it would like to repeal many of the tax expenditures that benefit the oil and natural gas industries, but, of course, many in the oil and gas industry would like to protect these benefits.