People Over Petroleum Act

People Over Petroleum Act

This bill limits or repeals certain fossil fuel oil and gas subsidies for oil companies and establishes a gas prices rebate for individual taxpayers.

Among other elements, the bill

• repeals the tax credits for producing oil and gas from marginal wells and for enhanced oil recovery;
• repeals various tax deductions, including the deduction for the intangible drilling and development costs of oil and gas wells;
• repeals the passive loss exception for working interests in oil and gas property;
• denies the tax deduction for income attributable to domestic production activities for oil and gas activities;
• prohibits the use of the last-in, first-out (LIFO) accounting method by major integrated oil companies;
• limits the foreign tax credit for dual capacity taxpayers (i.e., taxpayers who are subject to a levy of a foreign country or U.S. possession and receive specific economic benefits from such country or possession); and
• expands the definition of crude oil for purposes of the excise tax on petroleum and petroleum products to include any oil derived from a bitumen or bituminous mixture (tar sands), and any oil derived from kerogen-bearing sources (oil shale).

The bill also allows individual taxpayers a 2022 gas prices rebate for the first taxable year beginning in 2022. The bill defines 2022 gas prices rebate amount as the sum of $500 ($1,000 for joint returns), plus $500 times the number of taxpayer dependents who had attained the age of 16 as of the end of the taxable year.