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119-s-224119th CongressWALLET

Promoting Domestic Energy Production Act

Sponsored By: Senator Lankford, James [R-OK]

Introduced

Summary

This bill would change federal tax accounting for energy producers by altering how intangible drilling and development costs are treated when calculating adjusted financial statement income. It would amend Internal Revenue Code section 56A(c)(13) to limit which depreciation and section 263(c) deductions count in that calculation and to replace a rule about ignoring financial-statement depreciation and depletion with language that explicitly disregards those amounts, applying to taxable years beginning after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax change for oil and gas firms

This bill would change how firms treat intangible drilling and development costs (IDCs) for tax accounting. It would require ignoring depreciation and depletion shown on a firm's applicable financial statement for such property when computing adjusted financial statement income. It would only reduce that income by depreciation under section 167 and deductions under section 263(c) to the extent those amounts are allowed in taxable income. If enacted, these rules would apply to taxable years beginning after December 31, 2025, and could lower the tax base for affected energy firms.

Sponsors & CoSponsors

Sponsor

Lankford, James [R-OK]

OK • R

Cosponsors

  • Sen. Barrasso, John [R-WY]

    WY • R

    Sponsored 1/23/2025

  • Sen. Daines, Steve [R-MT]

    MT • R

    Sponsored 1/23/2025

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 1/23/2025

  • Sen. Scott, Tim [R-SC]

    SC • R

    Sponsored 1/23/2025

  • Sen. Marshall, Roger [R-KS]

    KS • R

    Sponsored 1/23/2025

  • Rep. Mullin, Markwayne [R-OK-2]

    OK • R

    Sponsored 1/23/2025

  • Sen. Cruz, Ted [R-TX]

    TX • R

    Sponsored 1/23/2025

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 1/23/2025

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 1/23/2025

  • Sen. Moran, Jerry [R-KS]

    KS • R

    Sponsored 1/23/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 1/23/2025

  • Sen. Risch, James E. [R-ID]

    ID • R

    Sponsored 1/23/2025

  • Sen. Sullivan, Dan [R-AK]

    AK • R

    Sponsored 1/23/2025

  • Sen. Cornyn, John [R-TX]

    TX • R

    Sponsored 1/24/2025

  • Sen. Moreno, Bernie [R-OH]

    OH • R

    Sponsored 3/13/2025

  • Sen. Lee, Mike [R-UT]

    UT • R

    Sponsored 3/26/2025

  • Sen. Hoeven, John [R-ND]

    ND • R

    Sponsored 5/21/2025

  • Sen. Husted, Jon [R-OH]

    OH • R

    Sponsored 5/21/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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