Energy

Passive Loss Limitations Exemption

Passive business activity refers to any activity in which a taxpayer has an economic interest but does not “materially participate.” Normally, taxpayers are allowed to deduct the losses they incur from passive activities (passive losses), but only an amount equal to income generated from the activity. Any excess of passive losses over passive income in […]

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Alternative Fuel Mixture Credit

The Alternative Fuel Mixture Credit is a $0.50 per gallon credit for producers of P-Series fuels, liquefied hydrogen, liquid fuel derived from coal through the Fischer-Tropsch process, or liquid fuel derived from biomass with gasoline, diesel or kerosene. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended the credit through the end of […]

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Amortization for Certain Pollution Control Facilities

Amortization for certain pollution control facilities provides an option to amortize investments in pollution control equipment for coal-fired electric generation plants over seven years. Amortization is a method of depreciation that recovers investment costs evenly (i.e., straight line depreciation) over the recovery period. The standard recovery period for the conventional type of electric generating equipment […]

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Amortization of Geological and Geophysical Expenditures

Geological and geophysical expenditures are the costs oil and gas companies incur when gathering data used to determine where oil and gas is located, and in what amounts, as well as where drilling may be most appropriate. They include seismic surveys, electromagnetic surveys, other types of remote sensing, shallow test drilling and bottom sampling. Amortization […]

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Biobased Markets Program

Beginning with the Rural Investment Act of 2002 and further codified in the Food, Conservation, and Energy Act of 2008, the Biobased Markets Program is a requirement for federal agencies to procure biobased products to the maximum practicable extent with a preference for products with the highest percentage of biobased ingredients; to establish a procurement […]

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Fuel Cycle Research and Development

The Fuel Cycle Research and Development program (formerly the Advanced Fuel Cycle Initiative) supports long-term research and development of nuclear fuel and waste management technologies. The goal of the program is to develop and demonstrate advanced, proliferation-resistant fuel cell technologies, to reduce nuclear fuel waste and to demonstrate that these technologies would allow commercial development […]

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Gas Royalty Relief – Deep and Shallow Water Gas

Oil and gas companies that drill on public lands or in federal waters pay royalties for the oil and gas they extract. The amount of royalties they pay depends on the amount extracted, the market price for oil and gas, and the royalty rate. The Deepwater Royalty Relief Act of 1995 (DWRRA) allowed the Secretary […]

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Industrial Carbon Capture and Sequestration Tax Credit

Carbon capture and sequestration involves separating carbon oxides (COX) from combusted fossil fuels or capturing them directly from the atmosphere. The carbon oxides are then stored (“sequestered”) by either pumping them into underground geologic formations or using them to produce some other product. The technology is predominantly designed to be used with coal, coal-to-liquid or […]

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