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End Oil and Gas Tax Subsidies Act of 2025
2/11/2025, 12:53 PM
Summary of Bill HR 383
The legislation is designed to address concerns about the environmental impact of fossil fuels and the need to transition to renewable energy sources. By repealing subsidies for oil companies, the bill aims to level the playing field for all energy producers and encourage the development of alternative energy technologies.
In addition to repealing fossil fuel subsidies, the bill also includes provisions for other purposes, which may include measures to support renewable energy development, promote energy efficiency, or address other related issues. Overall, Bill 119 HR 383 represents a significant step towards reducing the reliance on fossil fuels and promoting a more sustainable energy future for the United States.
Congressional Summary of HR 383
End Oil and Gas Tax Subsidies Act of 2025
This bill repeals or limits tax deductions and credits related to oil and gas production; increases the amortization period of geological and geophysical expenses; prohibits the use of the last-in, first-out (LIFO) accounting method by certain oil companies; and expands the definition of crude oil for certain purposes.
The bill repeals the
- tax credits for producing oil and gas from marginal wells and enhanced oil recovery,
- tax deduction for intangible drilling and development costs for oil and gas wells,
- percentage depletion,
- tax deduction for tertiary injectant expenses, and
- exception to the passive loss limitations for working interests in oil and gas property.
The bill increases the amortization period for geological and geophysical expenses from two years to seven years and prohibits major integrated oil companies from using the LIFO accounting method.
The bill excludes from the qualified business income tax deduction items related to oil and gas production, refining, processing, transporting, and distribution.
The bill provides statutory authority for Internal Revenue Service regulations that exclude from the definition of a tax for purposes of the foreign tax credit levies imposed by foreign countries or U.S. possessions on persons that receive a specific economic benefit from the country or possession.
Finally, the bill defines crude oil for purposes of the excise tax on imported petroleum and crude oil to include bitumen or bituminous mixtures or oil derived from such mixtures (including tar sands) and oil derived from kerogen-bearing sources (including oil shale).
