What’s good for business may not be good for the oil industry. Oil and natural-gas executives fear efforts to lower tax rates will come at the expense of breaks that benefit the fuel sector, reports E&E (requires subscription).
House Ways and Means Committee Chairman Dave Camp, R-Mich., is leading tax-reform efforts, and he has expressed a desire to cut targeted benefits to bring the overall corporate rate down to 25 percent. Said one conservative lobbyist of the oil industry, “They are all terrified.”
Still, passing any sort of tax-reform this session will be an uphill battle, and the oil industry does not lack for congressional allies. But talk of specific cuts has some folks worried. Among the breaks that may be getting the ax: manufacturing credits, deductible “intangible drilling costs,” and percentage depletion deductions.
Stephen Comstock, director of tax and accounting for the American Petroleum Institute, said any cuts to oil-industry tax breaks would “unintentionally hit the brakes on America’s energy and manufacturing renaissance.”