Description of S. 828 (Enhanced Oil And Gas Recovery Tax Act of 1989) : Scheduled for a Hearing Before the Subcommittee On Energy And Agricultural Taxation of the Senate Committee On Finance On August 3, 1989 Jcx-40-89
Description of S. 828 (Enhanced Oil And Gas Recovery Tax Act of 1989) : Scheduled for a Hearing Before the Subcommittee On Energy And Agricultural Taxation of the Senate Committee On Finance On August 3, 1989 Jcx-40-89
United States. Congress. Joint Committee On Taxation
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Percentage depletion is not allowed with respect to the transferee of a transferred proven oil- or gas-producing property. Generally, a proven property is a property that, at the time of transfer, has had its principal value demonstrated by prospecting, exploration, or discovery work. Explanation of the Bill Depletion rate for enhanced recovery S. 828 would provide a 27.5-percent depletion rate with respect to the production of domestic incremental tertiary crude oil and natural gas during the ...enhanced recovery period. This deduction would be available to all taxpayers (including independent and integrated producers) for an unlimited amount of production. Under the bill, the 27.5-percent rate would be phased-down to 15 percent by one percentage point for every Certain regulated natural gas, natural gas sold under a fixed contract, and natural gas from geopressed brine is exempt from the 1, 000-bar rel-per-day limitation. -5- the which domestic crude oil was sold by the taxpayer during th calendar year, by the taxpayer's aggregate production of su oil.^ e ch For purposes of the bill, incremental tertiary oil and gas includes incremental tertiary oil as defined for prior law windfall profit tax purposes (Code sec.
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