FENY - Oil industry keeps tax breaks in House Democrats' proposal

A surprise winner so far in the proposed $3.5T federal spending plan is the oil and gas industry, which managed to maintain a range of tax breaks in the House Ways and Means Committee's markup, despite objections from President Biden and Senate Democrats. The Ways and Means Committee draft - which could still be amended - does not address President Biden 's request to eliminate oil and gas companies' ability to expense "intangible drilling costs" such as labor costs and developing a well site. The draft also spares a percentage depletion deduction that allows producers to recoup costs at drilling sites, which is used by small, independent producers and royalty owners. The Friends of the Earth environmental group calls the House proposal "a failure of climate leadership," adding that it is counting on Senate Democrats to "continue the fight where the House has surrendered." But coal does not fare so

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Oil industry keeps tax breaks in House Democrats' proposal