AMT rules change seen boon for U. S. drilling
Journal Article
·
· Oil and Gas Journal; (United States)
OSTI ID:6964985
This paper reports that changes in alternative minimum tax (AMT) rules contained in U.S. energy legislation could make more capital available for drilling, predicts John Swords, head of the national energy tax practice of Coopers and Lybrand. Congressional conference committee members are trying to reconcile House and Senate versions of omnibus energy legislation. Under current law, intangible drilling costs (IDCs) become a tax preference to the extent that excess IDCs'' exceed 65% of a taxpayer's annual net income form oil and gas, Swords explained. Excess IDC is the amount of IDC deducted for regular tax purposes in excess of the amount that would have been deducted had the IDC been capitalized and deducted equally over 120 months, beginning with the month in which production form the property began. Oil and gas producers operating as a corporation also face the adjusted current earnings (ACEs) AMT calculation under current law.
- OSTI ID:
- 6964985
- Journal Information:
- Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 90:40; ISSN OIGJAV; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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