Newsom’s Proposed Budget Would Eliminate Tax Benefits for Independent Oil and Gas Producers

Governor Gavin Newsom’s proposed 2024-2025 budget would eliminate three tax benefits for independent oil and gas producers beginning in the 2024 tax year. The budget would repeal the immediate deduction for intangible drilling costs, the percentage depletion for fossil fuels, and the tax credit for enhanced oil recovery costs.

The governor’s budget summa…