Singling out one sector or industry with new or increased taxes, or subsidizing others, is harmful to our national and economic security. Proposals to add billions of dollars in new taxes on energy that Americans use every day, while subsidizing other forms of energy that can’t compete on their own in a free market, is unfair and discriminatory.
American fuel and petrochemical manufacturers and oil and natural gas producers simply want the right to maintain the same type of tax deductions that every other American business already gets. Favoring one form of energy over another gives foreign competitors an unfair advantage, endangers American jobs and make America more reliant on foreign energy.
Section 199 of the American Jobs Creation Act of 2004 provides much-needed tax relief for all qualified domestic manufacturers to help stimulate manufacturing activity in the United States. Proposals have been introduced to eliminate Section 199 only for the oil and gas sector.
Last In, First Out, referred to as LIFO, is an established accounting method used to determine inventory and has been relied on by many industries since 1939. It has been used to determine book and taxable income for companies that anticipate inflation or rising prices over the course of their operations. It has been targeted for repeal for the oil and gas sector.
Dual Capacity allows U.S. companies with overseas operations to claim foreign taxes paid on income earned in other countries, and prevents the same income from being taxed twice. The Obama administration has proposed eliminating this tax credit for the oil and gas sector.
Sec. 198 allows companies that purchase existing refineries that are designated as contaminated sites to take tax deductions for environmental remediation costs.
© 2015 AFPM. All rights reserved
American Fuel & Petrochemical Manufacturers
1667 K Street NW Washington, DC 20006