California to Repeal Key Tax Benefits for Oil Production

Budget legislation reflects governor’s priorities for repealing oil and gas tax benefits, as outlined in January budget proposal.

The California legislature passed budget legislation that repeals three key tax provisions that benefit oil and gas production. SB 167 repeals the state’s conformity to federal tax law on the immediate deduction for intangible drilling costs, the percentage depletion for fossil fuels, and the tax credit for enhanced oil recovery costs. Governor Gavin Ne…