[20140717]IF00040_2014年税收改革法案和总统2015财年预算提案中的石油和天然气税收问题.pdf

July 17, 2014 Oil and Gas Tax Issues in the Tax Reform Act of 2014 and the Presidents FY2015 Budget Proposal Overview and Current Law Energy-Specific Tax Expenditures. The Joint Committee on Taxation (JCT) and the Department of the Treasury have identified a number of “tax expenditure” provisions that benefit the oil and gas sector. Percentage Depletion. Independent producers can recover costs using percentage depletion instead of cost depletion. The deduction is generally 15% of gross income, but can be up to 25% for marginal wells. The deduction is subject to income and production limitations. Expensing of Intangible Drilling Costs (IDCs). IDCs include expenses on items without salvage value (e.g., wages, fuel, drilling site preparations). Integrated producers must capitalize and amortize 30% of IDCs over a 5-year period, while non-integrated producers can fully expense IDCs. Amortization of Geological and Geophysical (G&G) Expenditures. Independent producers can recover G&G expenditures over an accelerated 2-year period (major integrated producers must use a 7-year amortization period to recover G&G costs). Expensing of Tertiary Injectants. A deduction is allowed for the cost o