Producers urge Congress to leave IDC tax deductions alone

A coalition of 33 national, regional, and state oil and gas associations expressed concern to leaders of two key congressional committees over the possible elimination or restriction of the federal tax deduction for intangible drilling costs.

“Restrictions on the deductibility of these ordinary and necessary expenses would discourage the massive investment that is needed from this industry to deliver the supplies of American energy to American consumers and industry and to promote America’s energy security,” warned Bruce Thompson, president of the American Exploration & Production Council (AXPC), which released the Nov. 28 letter.

“The emphasis in tax reform must be on improving economic health and job creation,” he continued. “Limiting the current deductibility of ordinary business expenses will have precisely the opposite effect.”

The coalition sent the letter to US House Ways and Means Committee Chairman David L. Camp (R-Mich.), Ranking Minority Member Sander M. Levin (D-Mich.), US Senate Finance Committee Chairman Max Baucus (D-Mont.), and Ranking Minority Member Orrin G. Hatch (R-Utah).

It was signed by top officials from AXPC, the American Petroleum Institute, Independent Petroleum Association of America, and 10 other national associations; the Western Energy Alliance and two other regional organizations; and 17 associations in Colorado, Kansas, Ohio, Texas, and 13 other states.

Contact Nick Snow at

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring


The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected