A bill to amend the Internal Revenue Code of 1986 to allow intangible drilling and development costs to be taken into account when computing adjusted financial statement income.

Bill 119 s 224, also known as the Intangible Drilling and Development Costs (IDC) bill, aims to make changes to the Internal Revenue Code of 1986. The main purpose of this bill is to allow intangible drilling and development costs to be considered when calculating adjusted financial statement income.

Intangible drilling and development costs refer to expenses incurred during the process of drilling for oil or gas that do not have a physical presence, such as labor, engineering, and geological expenses. Currently, these costs are not taken into account when calculating adjusted financial statement income, which can have a significant impact on the financial reporting of companies in the oil and gas industry.

By allowing these costs to be included in the calculation of adjusted financial statement income, companies in the oil and gas industry will be able to more accurately reflect their true financial position. This can help investors and stakeholders make more informed decisions about the financial health of these companies. Overall, Bill 119 s 224 seeks to provide greater transparency and accuracy in financial reporting for companies in the oil and gas industry by allowing intangible drilling and development costs to be considered when computing adjusted financial statement income.