Energy

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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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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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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Last In, First Out Accounting

Last-in, first-out (LIFO) is a method for estimating the value of a company’s inventory against the value of goods sold in a given year. A taxpayer’s gross profit from the sale of goods is determined by subtracting the cost of goods sold from gross receipts. Cost of goods sold generally is determined by adding the […]

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Master Limited Partnerships for Oil and Gas Companies

A Master Limited Partnership (MLP) is a partnership, or a limited liability company (LLC) with interests that are traded on a public exchange or an over-the-counter market, like stock in a corporation. MLPs are treated essentially as an aggregation of the individual investors, and thus income is taxed as individual income for the investors rather […]

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Excess of Percentage Over Cost Depletion, Nonfuel Minerals

Businesses are generally allowed to recoup the capital costs associated with acquiring or creating an asset by deducting them from their taxable income. Typically, the costs are depreciated—deducted each year in proportion to the remaining useful life of the asset, corresponding to the income it generates. For natural resource assets, the costs of acquiring the […]

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Nuclear Energy Enabling Technologies

The Nuclear Energy Enabling Technologies (NEET) program is designed to support early stage research and development of advanced nuclear technologies. In particular, it is intended to support these areas of nuclear technology research and development (R&D): (1) “crosscutting” R&D of advanced fuels and advanced reactors; (2) advanced modeling R&D through Nuclear Energy Advanced Modeling and […]

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Biodiesel Fuel Education Program

The Biodiesel Fuel Education Program provides grants to nonprofit organizations and institutions of higher education to tout the supposed benefits of biodiesel fuel use. The program is intended to support advances in biodiesel fueling infrastructure, fuel quality, fuel safety and increasing feedstock production.  The Agriculture Improvement Act of 2018 (the 2018 farm bill) reauthorized the […]

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