Jan 23, 2025 Joint Trades Letter in Support of Cost Recovery of Intangible Drilling Costs (IDCs)
Re: Equalize the Tax Treatment of Oil & Natural Gas Capital Expenditures under the CAMT to Unlock Domestic Energy Production
Dear Chairman Smith, Chairman Crapo, Ranking Member Neal, and Ranking Member Wyden:
With this new Congress, we have a real opportunity to spur domestic energy production through common-sense, durable reform. This includes tax policy and the equitable treatment of capital investment to produce our own oil and natural gas.
On behalf of U.S. independent producers of oil and natural gas, we urge this Congress to rectify prior unsound and disparate tax policy embedded in the corporate alternative minimum tax (CAMT) and allow for the accelerated cost-recovery of intangible drilling costs (IDCs).
IDCs are ordinary business expenses incurred in the exploration, development, and drilling of new wells — including wages, repairs, supplies, fuel, surveying, and ground clearing. …
