Tax Cut Pushed to Hike Reserves
TULSA (AP) - Petroleum reserves would increase by 25 percent if taxes for enhanced oil recovery projects are reduced or eliminated, Sen. Pete Domenici said Monday.
Domenici, R-N.M., delivered the keynote speech at the annual meeting of the Interstate Oil Compact Commission, made up of representatives from 29 oil-producing states.
The meeting, which has attracted about 300 government and industry leaders, continues through Wednesday.
Domenici said he expects Congress to debate new tax legislation next year, with capital gains taxation likely to top the agenda.
``This is the year to use tax policy to increase domestic production,'' Domenici said.
He said he introduced a bill earlier this year that would grant tax incentives to producers involved in approved enhanced recovery projects.
Among the incentives are:
- Restoration of the oil depletion allowance to 27.5 percent for production resulting from enhanced oil recovery.
- Granting a 10 percent research and development tax credit for enhanced recovery.
- Chaning the alternative minimum tax laws regarding drilling and depletion allowances. …