H.R.662 - Promoting Domestic Energy Production Act (119th Congress)
Summary
H.R. 662, the "Promoting Domestic Energy Production Act," aims to amend the Internal Revenue Code of 1986. The amendment would allow intangible drilling and development costs to be considered when computing adjusted financial statement income. This bill was introduced in the House of Representatives on January 23, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The bill's passage would alter how energy companies calculate their adjusted financial statement income for tax purposes. Specifically, it would allow them to deduct intangible drilling and development costs. This could incentivize more domestic energy production.
Potential Benefits
- Increased domestic energy production.
- Potential for lower energy costs for consumers.
- Job creation in the energy sector.
- Greater energy independence for the United States.
- Simplification of tax calculations for energy companies.
Potential Disadvantages
- Potential reduction in government tax revenue.
- Possible environmental concerns due to increased drilling.
- May disproportionately benefit large energy corporations.
- Could discourage investment in renewable energy sources.
- Potential for increased reliance on fossil fuels.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe upon any specific constitutional rights or limitations. The promotion of domestic energy production could be argued to align with the general welfare clause of the preamble.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).