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.
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