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Congress·In Committee·S. 4604

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

Tax Breaks for Small Oil and Gas Producers

This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Finance for review. It is actively moving through the system, but no further hearings or votes have been scheduled yet. There is no companion bill currently linked to this legislation.

Legislative Progress

Senate
House
President
Law
Unlikely to pass

While it has support from senators in oil-producing states, it faces a tough path in a divided Congress where tax breaks for fossil fuels are often controversial.

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.

Milestones

2 milestones2 actions
May 20, 2026Senate

Read twice and referred to the Committee on Finance.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

May 20, 2026

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

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

Bill NumberS 4604
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(2)
R: 2

Analysis generated by AI. Always verify with official sources.