Oil, gas industry notches win on tax breaks—for now
An unlikely group of bedfellows is also calling on Congress to get rid of the tax provisions. Leading climate-hawk group Friends of the Earth, Taxpayers for Common Sense, the free market R Street Institute, and others teamed up this week to do just that.
“We differ vastly in our beliefs on the proper scope of government spending on infrastructure,” the groups wrote. “We do, however, strongly agree that new revenue to be raised to cover the cost of infrastructure spending should start by cutting programs and tax expenditures that are harmful to the environment.”
The coalition says the elimination of five key breaks, including intangible drilling costs and percentage depletion, would generate almost $27 billion in revenue over 10 years. A report from the Joint Committee on Taxation says the tax modifications in Senate Finance Committee Chair Ron Wyden’s Clean Energy for America Act, which makes changes on the IDC breaks but doesn’t eliminate them, would save about $24.5 billion over 10 years.