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Crude oil Windfall Profit Tax of 1980: legislative and regulatory analysis

Journal Article · · AGA Mon.; (United States)
OSTI ID:6126306

After months of debate and revision in both the US House and Senate, the crude oil Windfall Profit Tax Act of 1980 was signed into law (P.L. 96-223) on April 2, 1980. This legislative and regulatory analysis discusses features of the law which are applicable to the gas industry. The provisions of the tax create 3 categories (tiers) of oil, each having a specified base price used to derive the amount of windfall profit, and the amount of taxation. Each tier has a specified tax rate which applies to the windfall profit to calculate the actual amount of tax liability. Within these variables, the tax rate ranges from a high of 70% to a low of 30% or, in fact, zero tax on oil which is exempted. Several provisions contained in the original Senate versions of the bill are discussed: a 15% residential tax credit for high-efficiency gas replacement furnaces and boilers; an alternative energy production tax credit for natural gas produced from geopressured brine, coal seams, Devonian shale and tight sands; inclusion of public utility property as eligible for investment tax credits for certain renewable resource equipment; and investment tax credit for gas-fired congeneration equipment; and a 4-year fuel assistance provision to low-income customers.

OSTI ID:
6126306
Journal Information:
AGA Mon.; (United States), Journal Name: AGA Mon.; (United States) Vol. 62:7; ISSN AGMOD
Country of Publication:
United States
Language:
English