Issues » Fact Sheets
Tax/Capital Fact Sheets
IPAA has developed these fact sheets to provide straightforward explanations
of IPAA's position on key national energy policy issues.
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Manufacturer's Deduction
The American JOBS Creation Act of 2004 (JOBS Act) initiated a new tax deduction related to production in the United States. The deduction
began as a 3 percent deduction against income derived from American production. It will grow to a 9 percent deduction and it is always limited to amount equal to
50 percent of a company's wages. |
March 2007 |
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Elimination of Net Income Limitation
The net income limitation severely restricts the ability of independent producers to use percentage depletion, particularly with respect to marginal wells. IPAA proposes eliminating the net income limitation on percentage depletion. |
February 2007 |
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G & G Expenses
G&G expenses include the costs incurred for geologists, seismic surveys, and the drilling of core holes. These costs are an important and integral part of exploration and production for oil and natural gas |
February 2007 |
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Intangible Drilling and Development Costs
The intangible drilling and development costs (IDCs) deduction is allowed to provide a mechanism to attract capital for the high
risk business of exploring for, and developing, domestic oil and natural gas. While it has been limited, the IDC deduction remains an important incentive
for domestic oil and natural gas exploration and development |
February 2007 |
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Windfall Profits Tax
A "Windfall Profits Tax" would be a tax on American oil and natural gas producers. The last Windfall Profits Tax was enacted in 1980 and was a complete failure.
This mistake should not be repeated. |
February 2007 |
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Percentage Depletion Modifications
Percentage depletion is used for a number of mineral resources including oil and natural gas. It is a tax deduction calculated by
applying the allowable percentage to the gross income from a property. For oil and natural gas the allowable percentage is 15 percent. |
January 2007 |
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Tax Treatment of Delay Rentals |
February 2005 |
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Nonconventional Fuels Tax Credit |
February 2005 |
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Plowback Incentive |
February 2005 |
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EOR Tax Credit |
August 2000 |
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Federal Royalties Payments- A Status Report |
August 2000 |
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Internal Revenue Code Section 29 Tax Credit |
August 2000 |
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Federal Financial Instruments |
January 2000 |
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Kansas Ad Valorem Tax |
October 1999 |
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