Tax Breaks for Small Energy Producers to Fund Well Cleanup and Remediation.
This law creates new tax deductions for small oil and natural gas producers, allowing them to deduct contributions made to dedicated remediation accounts. Companies can deduct up to $35,000 annually, provided the funds are used exclusively for capping, closing, and remediating old wells. This aims to encourage smaller producers to proactively save for future environmental cleanup costs, potentially reducing the burden on taxpayers for orphaned wells.
Key points
Small oil and gas companies (under 500 employees) can deduct up to $35,000 annually into special remediation and restoration accounts.
Funds must be used strictly for environmental cleanup, including labor, materials, and meeting regulatory requirements for closing wells.
Money withdrawn for non-cleanup purposes will be taxed and subject to an additional 25% penalty.
Expired
Citizen Poll