Promoting Domestic Energy Production Act

H.R. 662 would amend the Internal Revenue Code to change how oil and gas companies account for intangible drilling and development costs when calculating their taxes. Currently, these costs are treated differently for financial reporting and tax purposes. If enacted, the bill would allow energy companies to align their tax deductions for depreciation and drilling expenses more closely with how they report these costs on their financial statements. This change would apply to tax years beginning after December 31, 2025. The bill is currently under consideration by the House Committee on Ways and Means and has not yet been voted on by the full House. Supporters argue the change would reduce the tax burden on domestic energy producers and encourage investment in energy projects. The bill was introduced in January 2025 and is in the early stages of the legislative process.