HR662119th CongressWALLET

Promoting Domestic Energy Production Act

Sponsored By: Representative Carey, Mike [R-OH-15]

Introduced

Summary

Would favor intangible drilling and development costs (IDCs) when computing adjusted financial statement income (AFSI). The bill would change Internal Revenue Code section 56A(c)(13) so certain depreciation and depletion tied to IDCs are excluded or disregarded in the AFSI calculation.

Show full summary
  • Companies with IDCs would see some drilling-related depreciation and depletion ignored for AFSI, which raises their reported AFSI.
  • Book-to-tax differences would change because the bill requires disregarding depreciation and depletion taken into account on a taxpayer's applicable financial statement for those properties.
  • The changes would apply to taxable years beginning after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

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

Higher book income taxes for oil and gas firms

If enacted, the bill would change how businesses compute adjusted financial statement income. Companies that use an applicable financial statement would have to ignore book depreciation and depletion tied to drilling costs. They could instead reduce this income by tax depreciation and by intangible drilling cost deductions, but only if those amounts are allowed in taxable income for the year. For many oil and gas companies, this could raise the income measure used for tax, leading to higher tax bills. It would apply to tax years beginning after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Carey, Mike [R-OH-15]

OH • R

Cosponsors

  • Gonzalez, V.

    TX • D

    Sponsored 1/23/2025

  • Langworthy

    NY • R

    Sponsored 1/23/2025

  • Rep. Rulli, Michael A. [R-OH-6]

    OH • R

    Sponsored 1/23/2025

  • Davidson

    OH • R

    Sponsored 1/23/2025

  • Crenshaw

    TX • R

    Sponsored 1/23/2025

  • Rep. Zinke, Ryan K. [R-MT-1]

    MT • R

    Sponsored 1/23/2025

  • Balderson

    OH • R

    Sponsored 1/23/2025

  • Rep. Veasey, Marc A. [D-TX-33]

    TX • D

    Sponsored 1/23/2025

  • LaHood

    IL • R

    Sponsored 1/23/2025

  • Rep. Carter, John R. [R-TX-31]

    TX • R

    Sponsored 1/23/2025

  • Rep. Meuser, Daniel [R-PA-9]

    PA • R

    Sponsored 1/23/2025

  • Rep. Thompson, Glenn [R-PA-15]

    PA • R

    Sponsored 1/23/2025

  • Rep. Miller, Mary E. [R-IL-15]

    IL • R

    Sponsored 1/23/2025

  • Hern (OK)

    OK • R

    Sponsored 1/23/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 1/23/2025

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 1/23/2025

  • Rep. Williams, Roger [R-TX-25]

    TX • R

    Sponsored 1/23/2025

  • Cuellar

    TX • D

    Sponsored 1/23/2025

  • Hunt

    TX • R

    Sponsored 1/23/2025

  • Rep. Mann, Tracey [R-KS-1]

    KS • R

    Sponsored 1/23/2025

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 1/23/2025

  • Cole

    OK • R

    Sponsored 1/23/2025

  • Rep. Weber, Randy K. Sr. [R-TX-14]

    TX • R

    Sponsored 1/23/2025

  • Rep. Newhouse, Dan [R-WA-4]

    WA • R

    Sponsored 1/23/2025

  • McDowell

    NC • R

    Sponsored 1/23/2025

  • Rep. Fallon, Pat [R-TX-4]

    TX • R

    Sponsored 1/23/2025

  • Van Duyne

    TX • R

    Sponsored 1/23/2025

  • Rep. Murphy, Gregory F. [R-NC-3]

    NC • R

    Sponsored 1/23/2025

  • Ellzey

    TX • R

    Sponsored 1/23/2025

  • Babin

    TX • R

    Sponsored 1/23/2025

  • Evans (CO)

    CO • R

    Sponsored 1/23/2025

  • Goldman (TX)

    TX • R

    Sponsored 1/23/2025

  • Rep. Malliotakis, Nicole [R-NY-11]

    NY • R

    Sponsored 1/23/2025

  • Estes

    KS • R

    Sponsored 1/28/2025

  • Amodei (NV)

    NV • R

    Sponsored 1/28/2025

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 1/28/2025

  • Mills

    FL • R

    Sponsored 1/28/2025

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 1/28/2025

  • Pfluger

    TX • R

    Sponsored 1/28/2025

  • Rep. Bice, Stephanie I. [R-OK-5]

    OK • R

    Sponsored 1/31/2025

  • Latta

    OH • R

    Sponsored 2/5/2025

  • Rep. Taylor, David J. [R-OH-2]

    OH • R

    Sponsored 3/5/2025

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 4/10/2025

Roll Call Votes

No roll call votes available for this bill.

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