Protecting America’s Small Oil and Gas Producers and Rural Jobs Act

Key Points

• This bill changes how small oil and gas companies calculate their tax deductions. It allows them to keep more of their income when oil prices are low. This is meant to help smaller businesses stay open in rural areas even when the market is struggling.
• The plan doubles the amount of oil that qualifies for a specific tax break. Currently, companies can claim this deduction on up to 1,000 barrels of oil per day. This bill would increase that limit to 2,000 barrels per day.
• It removes a rule that limits these tax deductions based on a company's total income. By removing this cap, small producers can lower their tax bills even more. This could help them keep workers employed during tough economic times.
• The bill includes a special calculation that increases the tax break if the price of oil drops below 70 dollars. This 70 dollar trigger will also be adjusted for inflation in future years to make sure the benefit keeps up with rising costs.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.