H.R. 8034, Oil and Gas Tax Relief. Quorum's AI analysis reads it as a net cost — and names who bears it.
H.R. 8034 · Net cost
What it does
This bill modifies the tax code to increase depletion allowances for small oil and gas producers on 'marginal properties' (low-yield wells). It raises the baseline depletion rate from 15% to up to 25% based on crude oil prices, removes income-limitation caps on depletion deductions for these wells, and indexes the price threshold to inflation. The primary beneficiaries are small and mid-sized oil and gas companies operating older or less productive wells.
The analysis names small and mid-sized oil and gas producers — and 2 more groups — among the beneficiaries.
The cost
The inflation-adjustment mechanism (PPI indexing) means the tax break grows automatically over time without further congressional action, locking in long-term revenue loss.
The analysis put a high warning level on this bill. Transparency scores 55%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by Tracey Mann. Cosponsored by August Pfluger, Derek Schmidt, Kevin Hern and Lauren Boebert.
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