What gifts will the fossil fuel industry receive this year courtesy of the American Taxpayer? Find out in our ongoing 12 days of Giveaways holiday guide to the gifts we give to Big Oil, Big Gas, and King Coal.
On the fourth day of fossil fuel giveaways we gave the oil, gas and coal industry...
Percentage Depletion for Oil and Natural Gas Wells - Cost: $10 billion
This is a pricey one - this tax break allows oil and gas companies to recoup their costs once a well starts to go dry by writing it off on their taxes. When a well is starting to run out of oil and gas, it becomes less valuable (after all, there is less oil and gas there) – this tax break allows companies to write off this drop in value. In some cases, this method allows them to not have to pay any federal taxes, even while they are making record profits!
The Dirty Dozen: