Bloomberg Tax
Jan. 31, 2023, 9:45 AM

Oil Industry Pushes for Drilling Cost Adjustment in Book Minimum Tax

Lauren Vella
Lauren Vella

The oil and gas industry is lobbying lawmakers and the Treasury to get an adjustment for intangible drilling costs included when calculating the corporate alternative minimum tax.

Industry groups representing these energy companies argue intangible drilling costs, or IDCs, are a unique capital investment category that should be eligible for a tax incentive similar to tangible assets for other industries.

Lobbyists say if the corporate alternative minimum tax, or CAMT, is not amended to include IDCs, it will limit companies’ cash flow and, along with it, the extent to which they can invest ...