The U.S. oil and natural gas industry does not receive “subsidized†payments from the government to produce oil and gas. However, there are many provisions in the tax code that allow companies to recover their costs. The oil and gas industry are eligible for these deductions, which are similar to, if not the same as, deductions available to many other industries. U.S. oil and natural gas companies pay considerably more of its profits in taxes than the average manufacturing company. Tax deductions should in no way be confused with subsidies. A fundamental pillar of the U.S. income tax system is that businesses are taxed only on net income. This means that there needs to be some practical and fair method for businesses to recover costs. The policies underlying cost recovery provisions in the tax code legitimately utilized by the oil and natural gas industry are no different than those for any other industry, and are necessary to insure that our industry is treated no differently than any other. Major energy producers pay at least their fair share and are a tremendous source of public revenue – click here to view all the taxes and fees paid by the industry. Did you know, unlike some forms of energy, the U.S. oil and gas industry receives no special spending credits in the tax code? To learn more about the tax treatments of the industry and exactly why they are not a taxpayer "subsidy", see "Why Oil & Gas Tax Treatments Are Not Unique or a Subsidy."
Big Oil Lobbyist Jack Gerard Lies About Industry Not Getting Subsidies
Exactly! The other comment confuses tax credits with subsidies. I’m all for tax credits and totally against subsidies for anyone.