President Obama Urges Elimination of Oil Producer Tax Breaks

Energy & Resources

By Jeffrey Wlahofsky

President Obama, once again, is urging congressional leaders to eliminate long-term tax incentives for the oil and gas industry. He also said that he wanted to work with Congress to develop a comprehensive energy strategy for the future in order to reduce U.S. dependence on foreign oil. The President expressed concern regarding the potentially negative impact of high oil and gas prices on the struggling economy. He noted that, there is no “silver bullet” to address rising gas prices in the short term, but that there are steps that can be taken over the long term.

One of the steps Mr. Obama proposes to take is to eliminate what he believes to be unwarranted tax breaks accorded to the oil and gas industry. No specific details were provided in the President’s letter to Congressional Leaders; however, the President has previously indicated that the intangible drilling costs deduction and percentage depletion deduction tax incentives should be eliminated.

Republicans, however, are critical of the proposal to eliminate the tax breaks. Senator Orrin Hatch (R-Utah), in response to the President’s proposal, said “...Tax hikes on domestic energy producers will yield higher prices at the pump for consumers in the long run and further impede our nation’s ability to achieve energy security and independence.”

For further information, please contact Jeff Wlahofsky.

Visit our website if you'd like more information on Schneider Downs Energy & Resources Industry Group.



Schneider Downs provides accountingtax, wealth management, technology and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH. 

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.


You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.