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by MaxHoppersGhost 896 days ago
Please list the oil industry tax breaks. Other than expensing certain expenses (shocking) they don’t really exist in the US
4 comments

Here's a small summary of just some of the subsidies they recieve, from a bill that was introduced[0] to limit them. These are over and above other types of deductions all businesses take advantage of tax wise

- Tax credits specifically for producing oil and gas from maringal wells and oil discovery

- Tax deductions for drilling and development cost of oil and gas wells

- Passive loss exceptions for working interests in oil and gas property (think dry wells)

- Removes exceptions for tar sands and oil shale[1]

These are just some. Then there's the second order costs, like how much of our defense budget is geared toward simply protecting oil tankers[2] specifically.

[0]: https://www.congress.gov/bill/118th-congress/house-bill/1483...

[1]: which had additional tax breaks due to land use classification

[2]: https://www.cnbc.com/2018/09/21/us-spends-81-billion-a-year-...

The US charges for resources extracted from federal soil. Specific laws were passed to exempt flared and vented gas from mineral royalties.

https://onlinelibrary.wiley.com/doi/full/10.1111/ropr.12369

> Most states have maintained methane release exemptions from these taxes through either statute or administrative discretion between 1960 and 2000, although a few have allowed some form of pricing. Two state legislatures have explored applying these taxes to methane releases on multiple occasions since 2000, amid expanded shale era output and growing public concern about climate and air quality impacts. Steadfast production industry opposition, rather than technical feasibility, emerges as the primary factor leading to rejection in these cases. Even when framing releases as a conventional air contaminant or as permanent loss of a nonrenewable natural resource, states largely continue to exempt flared or vented methane from severance taxes.

> On Tuesday, November 7th, Texas voters decisively endorsed Proposition 7, overwhelmingly supporting establishing a one-billion-dollar state-managed energy fund to enhance the infrastructure of natural gas power plants. The primary objective of this fund is to fortify the infrastructure of natural gas power plants throughout the state.

https://www.keatax.com/texas-approves-prop-7-to-support-foss...

Texas just passed a law providing billions for energy resilience that specifically excluded spending it on renewables.

> The Texas House of Representatives has given its approval to a new bill as a substitute for the Chapter 313 tax break. However, it explicitly excludes renewable energy companies from its provisions