Close Big Oil Tax Loopholes Act

This bill, introduced in 2010, seeks to eliminate several long-standing federal tax breaks and deductions specifically for major oil and gas companies with annual revenues exceeding $100 million. It would remove their ability to immediately deduct certain drilling and production costs, end specific tax credits for foreign operations, and impose a new 13% excise tax on oil and gas extracted from federal lands in the Gulf of Mexico.

For the average citizen, the bill’s primary impact would be a projected increase in federal tax revenue by billions of dollars, which proponents suggest could be used to reduce the national deficit or fund alternative energy initiatives. While the bill targets the corporate profits of the largest energy producers, critics and analysts have historically debated whether such measures might lead to fluctuations in domestic energy production levels or influence consumer fuel prices.