Promoting Domestic Energy Production Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 224 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 224

To amend the Internal Revenue Code of 1986 to allow intangible drilling 
and development costs to be taken into account when computing adjusted 
                      financial statement income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2025

 Mr. Lankford (for himself, Mr. Barrasso, Mr. Daines, Mr. Cassidy, Mr. 
   Scott of South Carolina, Mr. Marshall, Mr. Mullin, Mr. Cruz, Mr. 
Cramer, Ms. Lummis, Mr. Moran, Mr. Sheehy, Mr. Risch, and Mr. Sullivan) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow intangible drilling 
and development costs to be taken into account when computing adjusted 
                      financial statement income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Domestic Energy Production 
Act''.

SEC. 2. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO ACCOUNT 
              FOR PURPOSES OF COMPUTING ADJUSTED FINANCIAL STATEMENT 
              INCOME.

    (a) In General.--Section 56A(c)(13) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) reduced by--
                            ``(i) depreciation deductions allowed under 
                        section 167 with respect to property to which 
                        section 168 applies to the extent of the amount 
                        allowed as deductions in computing taxable 
                        income for the year, and
                            ``(ii) any deduction allowed for expenses 
                        under section 263(c) with respect to property 
                        described therein to the extent of the amount 
                        allowed as deductions in computing taxable 
                        income for the year, and'', and
            (2) by striking subparagraph (B)(i) and inserting the 
        following:
                            ``(i) to disregard any amount of--
                                    ``(I) depreciation expense that is 
                                taken into account on the taxpayer's 
                                applicable financial statement with 
                                respect to such property, and
                                    ``(II) depletion expense that is 
                                taken into account on the taxpayer's 
                                applicable financial statement with 
                                respect to the intangible drilling and 
                                development costs of such property, 
                                and''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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