Net-income limitation under Windfall Profit Tax
The net-income limitation (NIL) provision of the Crude Oil Windfall Profit Tax, which limits the profit on any barrel of crude oil to 90 percent of the net income, provides hope for those taxpayers who are disqualified for exemptions. The provision is based on sound economic principles because it only taxes the effects of decontrol where increased production would not respond to higher prices. Each producer calculates the NIL on the basis of his own income and expenses, starting with gross income from the property and employing a special cost-depletion-deduction calculation. The provision simplifies the accounting procedure and provides for a refund when the windfall profit exceeds the NIL, although the effect on the timing of expenditures will be minimal. (DCK)
- Research Organization:
- Cities Service Co., Tulsa, OK
- OSTI ID:
- 6705871
- Journal Information:
- Oil Gas Tax Q.; (United States), Vol. 24:2
- Country of Publication:
- United States
- Language:
- English
Similar Records
Deductibility of geological and geophysical costs for purposes of the 90% net-income limitation for the Windfall Profit Tax
Windfall Profit Tax: a primer on the net income limitation
Related Subjects
POLICY AND ECONOMY
02 PETROLEUM
PETROLEUM INDUSTRY
WINDFALL PROFITS TAX
ACCOUNTING
ECONOMIC IMPACT
INCOME
INDUSTRY
TAXES
294002* - Energy Planning & Policy- Petroleum
021000 - Petroleum- Legislation & Regulations
293000 - Energy Planning & Policy- Policy
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