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Enhanced Oil Recovery Credits and Marginal Well Production Credits: Potential Availability for 2016

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Joseph Mann, a partner in the Vorys Columbus office and a member of the tax group, authored an article for the OOGA Bulletin titled "Enhanced Oil Recovery Credits and Marginal Well Production Credits: Potential Availability for 2016."

The article states:

“Among the federal tax benefits poten­tially available to oil and gas producers are the Enhanced Oil Recovery Credit and the Marginal Well Production Credit. Each of these credits is subject to reduction (or com­plete elimination) based upon national aver­age oil and natural gas prices, as determined by the Internal Revenue Service.

As a result, the Enhanced Oil Recovery Credit has been entirely unavailable for the 10 years prior to 2016, and the Marginal Well Production Credit has been entirely unavailable since its enactment in 2004. However, for 2016, the Enhanced Oil Recovery Credit is once again available (without reduction).

In addition, while the Marginal Well Production Credit remains entirely phased out for 2016 with respect to oil production.”

To read a PDF of the full article, click here.