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), Journal Name: Oil Gas Tax Q.; (United States) Vol. 24:2; ISSN OGTQD
- Country of Publication:
- United States
- Language:
- English
Similar Records
Application of Section 111 to the Windfall Profit Tax refund
Primer/update of the crude oil Windfall Profit Tax
Related Subjects
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
ACCOUNTING
ECONOMIC IMPACT
INCOME
INDUSTRY
PETROLEUM INDUSTRY
TAXES
WINDFALL PROFITS TAX