Biden’s full year 2025 budget hurts oil and gas industry by repealing long-standing tax provisions, IPAA admonishes

(WO) – The Independent Petroleum Association of America (IPAA) issued the following statement in response to President Biden’s FY 2025 Budget that would repeal many long-standing oil and natural gas tax provisions.

IPAA President & CEO Jeff Eshelman said, “As we stated last week after President Biden’s State of the Union address, this administration continues to pick winners and losers in the energy sector, which only hurts consumers. The changes in President Biden’s proposed budget to oil and natural gas industry tax provisions are a direct attack on America’s smaller independent producers who develop most of the nation’s natural gas and oil wells, and particularly the small marginal operators. Many of these provisions, such as the deduction of intangible drilling costs (IDCs), are not subsidies but are important tax provisions that promote investment, job creation, and growth.

“Repealing this provision and raising taxes on oil and gas taxpayers is a reckless policy proposal. IPAA continues to fight to preserve industry tax treatment, particularly IDCs and percentage depletion allowance, and to prevent new taxes that would hinder independents’ ability to operate and produce energy for the American people and our allies.”