What This Bill Does · Plain English
Summary · Congress.gov
Promoting Domestic Energy Production Act This bill allows corporations to reduce their adjusted financial statement income to account for certain intangible costs related to oil, gas, or geothermal well drilling and development for purposes of calculating the corporate alternative minimum tax. Under current law, a 15% corporate alternative minimum tax is imposed on a corporation with adjusted financial statement income exceeding an average of $1 billion for a consecutive three-year period (or an average of $100 million for a U.S. corporation that is part of a foreign parent multinational group if the adjusted financial statement income of such group exceeds an average of $1 billion for a consecutive three-year period). Adjusted financial statement income generally is the net income or loss reported on the corporation’s applicable financial statement for a tax year, with adjustments for specific items. This bill expands the reductions that may be made to a corporation’s adjusted financial statement income to include (1) intangible drilling and development costs incurred by an operator of a domestic oil, gas, or geothermal well that are allowed as a deduction in the current tax year when computing regular taxable income; and (2) any depletion expenses related to the intangible oil, gas, or geothermal well drilling and development costs.
Action Timeline
2025-01-23
Referred to the House Committee on Ways and Means.
2025-01-23
Introduced in House
2025-01-23
Introduced in House
Frequently Asked Questions
Did HR.662 pass?
HR.662 is still alive. Current stage: COMMITTEE. Pass likelihood: 29%.
What does HR.662 do?
Promoting Domestic Energy Production Act This bill allows corporations to reduce their adjusted financial statement income to account for certain intangible costs related to oil, gas, or geothermal well drilling and development for purposes of calculating the corporate alternative minimum tax. Under current law, a 15% corporate alternative minimum tax is imposed on a corporation with adjusted financial statement income exceeding an average of $1 billion for a consecutive three-year period (or an average of $100 million for a U.S. corporation that is part of a foreign parent multinational group…
Who sponsored HR.662?
HR.662 was sponsored by Mike Carey (R-Ohio).
Full Bill Text
119 HR 662 IH: Promoting Domestic Energy Production Act U.S. House of Representatives 2025-01-23 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 662 IN THE HOUSE OF REPRESENTATIVES January 23, 2025 Mr. Carey (for himself, Mr. Vicente Gonzalez of Texas , Mr. Langworthy , Mr. Rulli , Mr. Davidson , Mr. Crenshaw , Mr. Zinke , Mr. Balderson , Mr. Veasey , Mr. LaHood , Mr. Carter of Texas , Mr. Meuser , Mr. Thompson of Pennsylvania , Mrs. Miller of Illinois , Mr. Hern of Oklahoma , Ms. Tenney , Mrs. Miller of West Virginia , Mr. Williams of Texas , Mr. Cuellar , Mr. Hunt , Mr. Mann , Mr. Miller of Ohio , Mr. Cole , Mr. Weber of Texas , Mr. Newhouse , Mr. McDowell , Mr. Fallon , Ms. Van Duyne , Mr. Murphy , Mr. Ellzey , Mr. Babin , Mr. Evans of Colorado , Mr. Goldman of Texas , and Ms. Malliotakis ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow intangible drilling and development costs to be taken into account when computing adjusted financial statement income. 1. Short title This Act may be cited as the Promoting Domestic Energy Production Act . 2. Intangible drilling and development costs taken into account for purposes of computing adjusted financial statement income (a) In general Section 56A(c)(13) of the Internal Revenue Code of 1986 is amended— (1) by striking subparagraph (A) and inserting the following: (A) reduced by— (i) depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and (ii) any deduction allowed for expenses under section 263(c) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and , and (2) by striking subparagraph (B)(i) and inserting the following: (i) to disregard any amount of— (I) depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and (II) depletion expense that is taken into account on the taxpayer’s applicable financial statement with respect to the intangible drilling and development costs of such property, and . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
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