End Oil and Gas Tax Subsidies Act of 2025

The End Oil and Gas Tax Subsidies Act of 2025 would eliminate or reduce several tax benefits currently available to oil and gas producers. Specifically, it would repeal tax credits for producing oil from marginal wells and enhanced oil recovery, eliminate deductions for intangible drilling costs and tertiary injectant expenses, and remove percentage depletion allowances. The bill would also extend the time period for writing off geological and geophysical expenses from two years to seven years, and would prohibit major integrated oil companies from using the LIFO accounting method, which allows them to value inventory based on most recent costs.

If enacted, the bill would also exclude oil and gas production activities from the qualified business income tax deduction that many business owners currently use. Additionally, it would expand the definition of crude oil subject to excise taxes to include tar sands and oil shale products. The bill is currently in the committee stage and has not yet been voted on by the full House. The practical effect of these changes, if passed, would be to increase the tax burden on oil and gas companies and potentially increase federal revenue, though it could also affect energy prices and industry investment decisions.