State Legislature Passes Bills to Lower Taxes on Oil, Gas From Enhanced Recovery

摘要

Michigan's Republican-led Legislature approved a package of bills lowering taxes on oil and gas that is produced using carbon dioxide for enhanced recovery. House Bill 4885 imposes a severance tax of 4 percent of the oil or gas produced from a carbon dioxide secondary or enhanced recovery project, based on the gross cash market value of total production during the preceding month. Currently, the tax on oil recovery is 5 percent, and the tax on gas is 6.6 percent. The new law applies to projects approved after March 30. H.B. 5254, 5255 and 5274 amend the 1929 law regulating the transportation and sale of crude oil and petroleum through pipelines to allow for the transport of carbon dioxide substances.