North Columbus News

Representative Mike Carey has introduced the Promoting Domestic Energy Production Act, a bill aimed at enhancing U.S. energy production by allowing companies to deduct costs associated with oil and gas exploration. Co-led by Representative Vicente Gonzalez, the bipartisan initiative seeks to restore tax deductions that have been limited by recent legislation.

Carey emphasized the importance of domestic energy production in reducing reliance on foreign sources: “Affordable energy, produced here at home, will bring down costs and prevent America’s reliance on our foreign adversaries.”

Gonzalez highlighted the bill's potential impact on job creation and energy prices: “This commonsense bipartisan bill promotes our nation’s domestic energy production capabilities – ensuring we keep and create American jobs, lower energy prices, and decrease our dependence on foreign energy sources.”

The legislation focuses on intangible drilling costs, which are significant expenses related to labor and safety in oil exploration. Historically part of the U.S. tax code, these deductions were restricted under the Inflation Reduction Act. The new bill aims to reestablish them as a standard deduction for calculating taxable income.

Anne Bradbury of the American Exploration & Production Council praised the bill: “Allowing for the fair treatment of intangible drilling costs is not only a matter of sound policy but also an important tool for encouraging the continued development of domestic energy.”

Dustin Meyer from API expressed support for this legislative effort: “American voters sent a clear message in support of U.S. energy leadership...we urge Congress to pass the Promoting Domestic Energy Production Act to help deliver a stronger, more prosperous energy future for all Americans.”

The bill has garnered co-sponsorship from several representatives across various states. It was previously introduced in an earlier session of Congress.