Lets small oil and gas producers get bigger tax breaks on their wells.
This bill would change tax rules for oil and gas companies, especially those with smaller, or "marginal," wells. It would make it easier for these companies to claim certain tax deductions, potentially lowering their tax bills. These changes would start for tax years beginning after December 31, 2026.
Today, owners of oil and gas wells follow specific tax rules for percentage depletion, including a 1,000-barrel limit for depletable oil quantity and an income limit on tax breaks for marginal wells. If this bill becomes law, the depletable oil quantity would double to 2,000 barrels, and the income limit for marginal wells would be removed, potentially increasing tax benefits for producers.
HR 8034 · 119th Congress · March 20, 2026 · AI Summary by gemini-2.5-flash · 9/10
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