U.S. Sen. Jim Inhofe (R-Okla.) ahead of Tax Day, introduced two bills that will revive and make permanent expired tax provisions, the Indian Lands Accelerated Depreciation provision and the Suspension of Net Income Limitation for Percentage Depletion for Marginal Wells provision. Both provisions would encourage job growth and investment in Oklahoma.
“We’re seeing the success of tax reform already—jobs being created, more investment in the community and pay raises for employees. We need to continue the positive effects of tax reform by making these temporary, widely supported provisions in the tax code permanent. The Indian Lands Accelerated Depreciation legislation would allow for much quicker depreciation of capital assets used on Indian lands, thereby creating significant savings for businesses to reinvest,” Sen. Inhofe said. “Because of Oklahoma’s rich Native American heritage, this provision applies to businesses in the vast majority of the state and encourages greater local investment. The Net Income Limitation Suspension for Percentage Depletion on Marginal Wells legislation would revive an IRS provisions that has been supported by Congress for 16 years. The United States must encourage the continued production of marginal wells in order to achieve energy dominance. My legislation will give energy producers the predictability and certainty they require to invest in the future of our domestic resources.”
“More than two-thirds of the lands in Oklahoma meet the definition of former Indian lands making this incentive a vital tool for economic development in the state,” said Deby Snodgrass, Executive Director and Secretary Of Commerce and Tourism. “By making this incentive permanent, states like Oklahoma will have increased opportunity to recruit capital investment and jobs, strengthening and diversifying economies, often in rural and impoverished areas of our state and across the nation.”
“OGE Energy is appreciative of Senator James Inhofe for his continued thoughtful leadership in introducing legislation which would make permanent the currently temporary and expiring federal tax code provision allowing for accelerated depreciation of energy property located on Indian lands,” said Brian Alford, Director of Public Affairs, OGE Energy Corporation. “The legislation would bring greater incentive and needed predictability to investment decisions for entities considering capital projects on Indian lands. Just as it would benefit all states with significant tribal communities and Indian lands, such capital investment will benefit both Native Americans in Oklahoma and the state’s economy in general—which clearly benefits all Oklahomans—by generating increased employment opportunities and economic development across much of the state. We look forward to enactment of Senator Inhofe’s important job-creating legislation.”
Inhofe also introduced S.2674, a bill to amend the IRS code to eliminate the taxable income limit on percentage depletion for oil and natural gas produced from marginal properties. This provision would encourage the continued production of marginal wells, an important contributor to domestic production, in order to achieve energy dominance. There are over 770,000 marginal wells in the United States.
Inhofe introduced S.2675, legislation which would make permanent the Indian Lands Accelerated Depreciation tax provision. Inhofe has introduced this legislation each Congress since 2005. This provision in the federal tax code would allow businesses that purchase capital equipment for use on former or current Indian lands to depreciate it more than 40 percent faster than would otherwise be allowed. The provision, which is currently temporary, was a leading reason Macy’s invested $170 million in a state-of-the-art facility in Owasso, Okla. that created over 1,000 permanent jobs and an additional 1,000 seasonal positions. In 2017, Macy’s fulfillment center tripled its workforce from 1,500 to 4,500 employees to account for the holiday shopping surge.