• Taxes We Pay

    Taxes Image  

    AFPM members currently pay the following taxes or are in jeopardy of losing the following tax credits that other manufacturers receive:

    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.

    Accelerated Depreciation is one of several cost recovery methods that businesses are permitted to use for financial accounting or tax purposes. It permits recovery or deduction of the costs to acquire or produce fixed assets in a manner such that the amount deducted each year is higher during the earlier years of an asset's life.

    Master Limited Partnerships, referred to as MLPs, are important to the refining and petrochemical industries because MLPs have become the primary builders of midstream energy infrastructure for the US economy. MLPs assets include over 300,000 miles of pipelines forming the backbone of US energy infrastructure linking energy producing regions and end use consumers and manufacturers.

    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.