End Oil and Gas Tax Subsidies Act of 2025
Sponsored By: Representative Rep. Casten, Sean [D-IL-6]
Introduced
Summary
ending major federal tax subsidies for oil and gas. This bill would strip several targeted tax breaks and change accounting and international tax rules to reduce incentives for oil and gas activities.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
5 provisions identified: 0 benefits, 5 costs, 0 mixed.
End business and passive-loss oil breaks
If enacted, pass-through owners and investors in oil and gas would lose two tax favors. The 20% business income deduction would not apply to oil and gas production, refining, processing, transport, or distribution for tax years beginning after December 31, 2024. The special rule that treated working interests as nonpassive would end, so passive-loss limits could apply starting in those years.
Ban last-in, first-out for big oil
If enacted, large integrated oil companies could not use last-in, first-out inventory accounting for any goods. The ban would apply if the company has at least 500,000 barrels per day of worldwide crude production, over $1,000,000,000 in gross receipts, and over 75,000 barrels per day of refinery runs with related parties. It would apply to tax years beginning after December 31, 2024. Required accounting adjustments would be spread over up to eight years starting with the first tax year after enactment.
End key oil and gas tax breaks
If enacted, most major oil and gas tax breaks would end. Intangible drilling costs and the deduction for tertiary injectants would not be allowed for amounts paid in tax years starting after December 31, 2024. Percentage depletion would end for property placed in service after December 31, 2024. The enhanced oil recovery credit and the marginal well credit would be repealed for tax years beginning after December 31, 2024. Geological and geophysical costs would be written off over seven years instead of two, delaying deductions.
Limit foreign tax credits for oil
If enacted, some payments to foreign governments by oil and gas companies would no longer count for the U.S. foreign tax credit. The limit would apply to dual-capacity taxpayers with combined foreign oil and gas income, starting with taxes paid or accrued in tax years beginning after December 31, 2024. The rule would not apply where it conflicts with a U.S. tax treaty.
Tax more oil-like fuels as crude
If enacted, more oil-like fuels would be taxed as crude oil under the section 4611 excise. The list would include condensates, natural gasoline, bitumen and tar sands oil, and oil from kerogen or oil shale. The Treasury could add other fuels by rule if they fit the Oil Pollution Act definition and pose a spill risk. These changes would take effect on the date of enactment. This could increase excise taxes for companies that handle these products.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & CoSponsors
Sponsor
Rep. Casten, Sean [D-IL-6]
IL • D
Cosponsors
Rep. Beyer, Donald S. [D-VA-8]
VA • D
Sponsored 1/14/2025
Rep. Levin, Mike [D-CA-49]
CA • D
Sponsored 1/14/2025
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 1/14/2025
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 1/14/2025
Rep. Cohen, Steve [D-TN-9]
TN • D
Sponsored 1/14/2025
Rep. Huffman, Jared [D-CA-2]
CA • D
Sponsored 1/14/2025
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 1/14/2025
Rep. Pingree, Chellie [D-ME-1]
ME • D
Sponsored 1/14/2025
Rep. Schakowsky, Janice D. [D-IL-9]
IL • D
Sponsored 1/14/2025
Rep. Tonko, Paul [D-NY-20]
NY • D
Sponsored 1/14/2025
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 1/14/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 1/15/2025
Rep. Raskin, Jamie [D-MD-8]
MD • D
Sponsored 1/16/2025
Rep. Nadler, Jerrold [D-NY-12]
NY • D
Sponsored 3/26/2025
Rep. Ansari, Yassamin [D-AZ-3]
AZ • D
Sponsored 7/22/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in