Energy Tax Deductions and Rates Up for Debate in US Debt Imbroglio

摘要

As Congress scrambles to address the federal debt ceiling that could be breached on Aug. 2, compromise proposals to close corporate tax loopholes while lowering corporate tax rates could have far-reaching implications for oil and gas companies if they make their way into a final deal. The "Gang of 6" in the Senate, for example — a bipartisan coalition working on a debt compromise — says one condition of their plan would require the Senate Finance Committee to draft a proposal within six months that would raise $1 trillion in tax revenue over the next decade. Likely targets include eight tax deductions that are exclusively applicable to producers, including write-offs for exploration and production expenses and the oil and gas sector's eligibility for section 199 income tax deductions that are available to all domestic industries (NGW Mar.2'09).