WASHINGTON, D.C. — U.S. Sen. Jim Inhofe (R-Okla.) today, on Tax Day, introduced two bills that will revive and make permanent expired tax provisions, the Indian Lands Accelerated Depreciation provision, S.947, and the Suspension of Net Income Limitation for Percentage Depletion for Marginal Wells provision, S.948. Both provisions would encourage job growth and investment in Oklahoma.
“Americans spend roughly 6 billion hours working to comply with our nation’s complex tax code, according to the IRS’ National Taxpayer Advocate. This is why one of the many reasons I believe Congress needs to consider tax reform that simplifies our outdated tax code and lowers taxes on all Americans in order to improve our economy,” Inhofe said. “Today, on Tax Day, I have reintroduced two bills that would make temporary provisions in our nation’s tax code permanent. The Indian Lands Accelerated Depreciation legislation would allow businesses that purchase capital equipment and use it on former or current Indian lands to depreciate it more than 40 percent faster than would otherwise be allowed. Because of Oklahoma’s rich Native American heritage, this provision applies to businesses in the vast majority of the state. 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. It allows owners of small, marginally producing oil and natural gas wells to operate economically for a much longer period of time than would otherwise be allowed, helping us maximize domestic production and taking us another step closer to energy independence.”
On April 15, 2015, Inhofe introduced S.947, 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 investing $170 million in a state-of-the-art facility in Owasso, Okla. that is expected to create 1,500 new permanent jobs and an additional 1,000 more during the Christmas shopping season.
On April 15, 2015, Inhofe also introduced S.948, a bill to amend the IRS Code of 1986 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, which account for nearly 28 percent of domestic production in the lower 48 states, in order to achieve energy independence. There are over 770,000 marginal wells in the United States.
Inhofe has been a longtime recipient of the National Taxpayers Union’s “Taxpayer’s Friend Award” and has also received the “Spirit of Enterprise Award” from the U.S. Chamber of Commerce for his pro-business record.