Texas Senator John Cornyn filed legislation Tuesday that would allow oil
companies to temporarily reduce their federal taxes and royalty payments duri
In Case You Missed It:
Cornyn moves to reduce taxes, royalties on oil sector

By: James Osborne
As published in the Houston Chronicle
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Texas Senator John Cornyn filed legislation Tuesday that would allow oil
companies to temporarily reduce their federal taxes and royalty payments during
the coronavirus pandemic.

At a time when oil companies are struggling under a volatile energy market,
Cornyn is proposing to expand the degree to which companies can deduct drilling
costs and other expenses from their tax bill this year, while also reducing the
amount of the federal fuel tax companies must deposit every two weeks from 95
percent of the tax to 25 percent.  Companies recoup the money from consumers
who pay the tax at the pump.

"There’s no doubt many in the energy industry have been hanging by a thread,”
Cornyn, a Republican, said in a statement.  “These reforms will allow Texas’
job creators to weather this downturn, continue paying their workers, and
invest in their infrastructure for years to come.”

Also, rules for reducing royalty rates and granting extensions on federal
leases would be streamlined for the duration of the pandemic. And the tax
benefit for carbon capture projects would be extended by one year.

The move comes months into a pandemic which has seen crude prices fall into
negative territory for the first time in history, as stay-at-home orders kept
motorists off the road worldwide.

In recent weeks, oil prices have rebounded, with West Texas Intermediate
trading around $40 a barrel Tuesday.  But the industry remains under stress,
with 14 oil companies filing for bankruptcy in April and May, compared to five
over the first three months of the year.


 
What the oil and natural gas industry means to Texas:
1,938,700 Direct, Indirect, induced jobs provided by the oil & gas industry
$104,489 Average annual oil & gas industry salary in TX
$308.3 Billion Contribution to TX economy
From the American Petroleum Institute
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