Newsom Releases Proposed Legislation to Eliminate Oil Tax Benefits
Governor Gavin Newsom released proposed legislation to eliminate three tax benefits for independent oil and gas producers beginning in the 2024 tax year.
The proposed legislation would repeal the accelerated deduction for intangible drilling costs, the percentage depletion for fossil fuels, and the tax credit for enhanced oil recovery costs.
Newsom originally proposed the repeals in his 2024-2025 proposed budget.
See Newsom’s Proposed Budget Would Eliminate Tax Benefits for Independent Oil and Gas Producers for a discussion of the proposals.