I
119THCONGRESS
1
STSESSION H. R. 662
To amend the Internal Revenue Code of 1986 to allow intangible drilling
and development costs to be taken into account when computing adjusted
financial statement income.
IN THE HOUSE OF REPRESENTATIVES
JANUARY23, 2025
Mr. C
AREY(for himself, Mr. VICENTEGONZALEZof Texas, Mr.
L
ANGWORTHY, Mr. RULLI, Mr. DAVIDSON, Mr. CRENSHAW, Mr. ZINKE,
Mr. B
ALDERSON, Mr. VEASEY, Mr. LAHOOD, Mr. CARTERof Texas, Mr.
M
EUSER, Mr. THOMPSONof Pennsylvania, Mrs. MILLERof Illinois, Mr.
H
ERNof Oklahoma, Ms. TENNEY, Mrs. MILLERof West Virginia, Mr.
W
ILLIAMSof Texas, Mr. CUELLAR, Mr. HUNT, Mr. MANN, Mr. MILLER
of Ohio, Mr. C
OLE, Mr. WEBERof Texas, Mr. NEWHOUSE, Mr.
M
CDOWELL, Mr. FALLON, Ms. VANDUYNE, Mr. MURPHY, Mr. ELLZEY,
Mr. B
ABIN, Mr. EVANSof Colorado, Mr. GOLDMANof Texas, and Ms.
M
ALLIOTAKIS) introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow intan-
gible drilling and development costs to be taken into
account when computing adjusted financial statement in-
come.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
VerDate Sep 11 2014 21:13 Feb 19, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H662.IH H662
kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
•HR 662 IH
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Promoting Domestic 2
Energy Production Act’’. 3
SEC. 2. INTANGIBLE DRILLING AND DEVELOPMENT COSTS 4
TAKEN INTO ACCOUNT FOR PURPOSES OF 5
COMPUTING ADJUSTED FINANCIAL STATE-6
MENT INCOME. 7
(a) I
NGENERAL.—Section 56A(c)(13) of the Inter-8
nal Revenue Code of 1986 is amended— 9
(1) by striking subparagraph (A) and inserting 10
the following: 11
‘‘(A) reduced by— 12
‘‘(i) depreciation deductions allowed 13
under section 167 with respect to property 14
to which section 168 applies to the extent 15
of the amount allowed as deductions in 16
computing taxable income for the year, 17
and 18
‘‘(ii) any deduction allowed for ex-19
penses under section 263(c) with respect to 20
property described therein to the extent of 21
the amount allowed as deductions in com-22
puting taxable income for the year, and’’, 23
and 24
(2) by striking subparagraph (B)(i) and insert-25
ing the following: 26
VerDate Sep 11 2014 21:13 Feb 19, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H662.IH H662
kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
•HR 662 IH
‘‘(i) to disregard any amount of— 1
‘‘(I) depreciation expense that is 2
taken into account on the taxpayer’s 3
applicable financial statement with re-4
spect to such property, and 5
‘‘(II) depletion expense that is 6
taken into account on the taxpayer’s 7
applicable financial statement with re-8
spect to the intangible drilling and de-9
velopment costs of such property, 10
and’’. 11
(b) E
FFECTIVEDATE.—The amendments made by 12
this section shall apply to taxable years beginning after 13
December 31, 2025. 14
Æ
VerDate Sep 11 2014 21:13 Feb 19, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H662.IH H662
kjohnson on DSK7ZCZBW3PROD with $$_JOB