Posted on 07/28/2023 6:37:13 PM PDT by Libloather
FIRST ON FOX: A large bipartisan coalition in the House is introducing legislation Friday that would reverse a provision in the Inflation Reduction Act (IRA) targeting oil and gas producers.
The Promoting Domestic Energy Production Act - authored by Reps. Mike Carey, R-Ohio, and Vicente Gonzalez, D-Texas, and joined by more than a dozen fellow members - would aim to ensure the oil and gas industry is able to enjoy the same tax benefits as other capital-intensive industries. Specifically, it allows companies to receive tax deductions on intangible drilling costs (IDC).
"American energy independence is neither a right nor left issue, but one that should unite us all," Carey told Fox News Digital in a statement. "Our bipartisan legislation fixes a provision within the Inflation Reduction Act that unfairly penalizes America’s energy producers."
"At a time of sky-high inflation, the American people need any help they can get when it comes to lowering the cost of energy," the Ohio Republican continued.
The Inflation Reduction Act, President Biden's $739 billion climate and tax package passed last year, imposes a book minimum tax on American companies. However, while companies in most industries can still reduce taxable income by the amount of depreciation deductions received under corporate tax, oil and gas companies are not able to do so.
IDCs, which account for about 85% of oil and gas exploration costs like labor and safety costs, are not eligible for accelerated cost recovery deductions allowed for tangible personal property under the IRA. As a result, the IRA’s book minimum tax has led to American oil and gas producers experiencing the third-highest tax hike compared to 30 different industries.
"Our country must be ready to face the energy challenges of the next few decades," Gonzalez said in a statement shared with Fox News Digital.
(Excerpt) Read more at foxnews.com ...
Too late it’s law. The democrats voted for the provision. All that has to be done is a veto by biden and doubt would be overridden. Kabuki Theater
For the liberals who think EV is the answer, consider this:
https://www.youtube.com/watch?v=bVnEw8kk2l0
.
Guessing the Senate shoots it down and there’s not even a Veto needed.
True
They regret stupidly voting for the Wallet Reduction Act
They are getting H over the EPA regs on stoves, washers, AC, Furnaces, hot water heaters, light bulbs, and more, while FJB ISN’T GIVING UP HIS 6, and CHEFS ARE BUYING EXEMPTIONS.
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