Primer/update of the crude oil Windfall Profit Tax

Journal Article · Tue Jun 01 04:00:00 EDT 1982 · Oil Gas Tax Q.; (United States)

OSTI ID:6193917

Crumbley, D L; Reese, C E

Property under the WPT is defined for the entire tax, except for the net income limitation, just as it is defined under DOE (Department of Energy) regulations. In most cases, the property unit will be the same for DOE and federal tax purposes. The windfall profit on a barrel of crude oil is limited to 90% of the net income attributable to that barrel. However, net income is based on taxable income, which must be adjusted for WPT purposes, and not on financial accounting income. The WPT will phase out with a 3% reduction in rates over a 33-month period. This phase-out period will begin the later of (1) January 1, 1988, or (2) when it is estimated that aggregate net WPT revenues will exceed $227.3 billion. This aggregate net figure takes into account refunds, credits, and the reduction in income taxes as a result of the WPT deductibility.

• Research Organization: Texas A and M Univ., College Station
• OSTI ID: 6193917
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 30:4; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
ACCOUNTING
CALCULATION METHODS
INCOME
INDUSTRY
PETROLEUM INDUSTRY
TAXES
WINDFALL PROFITS TAX