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U.S. Department of Energy
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Tax incentives for the tertiary oil operator

Conference · · Kansas Univ. Tertiary Oil Recovery Project Contrib.; (United States)
OSTI ID:6143461
There are 3 basic tax incentives for the tertiary oil operator. First of all, under the Crude Oil Windfall Profit Tax Act of 1980, tertiary operators are now allowed to deduct tertiary injectants, one of which is a deduction for income tax purposes. Under the percentage depletion rules, tertiary operators are given certain rate and quantity advantages that are not otherwise allowable to oil and gas producers. This work examines the deduction for tertiary injectants. Prior to the passage of the Windfall Profit Tax Act, these expenditures were required to be capitalized and depreciated over the life of the project for income tax purposes. IRC Section 193 now allows certain qualified tertiary injectants to be deducted front end. The study also reviews the percentage depletion incentives under IRC Section 613A.
OSTI ID:
6143461
Conference Information:
Journal Name: Kansas Univ. Tertiary Oil Recovery Project Contrib.; (United States) Journal Volume: 6
Country of Publication:
United States
Language:
English