Bills · HR 8034
IN COMMITTEE· 119TH CONGRESS
House BillHR 8034Taxation
Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
INTRO MAR 20· LAST ACTION MAR 20
READING
3MIN
COSPONSORS
10
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it directly impacts the financial health of small, independent oil and gas producers. If these producers face lower tax burdens, especially when oil prices are low or operating costs are high, it could help them stay in business, maintain employment in rural areas, and contribute to domestic energy supply. This is particularly relevant given fluctuating global energy markets and the ongoing debate about energy independence.
If this bill becomes law, these producers would have more financial flexibility, potentially leading to continued investment in existing wells and preventing early closures of marginal properties. If it doesn't pass, these producers would continue to operate under current tax rules, which might make it harder for them to weather economic downturns or rising costs, potentially leading to less domestic production and job losses in the sector. The bill essentially acts as a financial relief mechanism for a specific segment of the energy industry.
KEY PROVISIONS
3AI-extractedPROVISION 01
Modifies the calculation of the percentage depletion rate for marginal oil and gas wells, increasing the rate by one percentage point for every dollar the crude oil reference price falls below $70, up to a maximum of 25%. The $70 threshold will be adjusted for inflation starting in 2027 based on drilling costs.
This provides a larger tax deduction for marginal well operators when oil prices are low or costs are high, offering financial relief.
PROVISION 02
Removes the "taxable income limitation" for the percentage depletion allowance specifically for marginal oil and gas properties.
This allows producers to claim the full depletion deduction for marginal wells without being limited by a percentage of their income from that property or their overall taxable income.
PROVISION 03
Doubles the "depletable oil quantity" from 1,000 barrels to 2,000 barrels per day for independent producers and royalty owners.
This expands the amount of daily production eligible for the percentage depletion tax benefit, offering a greater tax advantage.
SPONSORSHIP
1 + 10
R· Kansas
YRS IN OFFICE
5
BILLS LED
28
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 10 IND 0
ACTION TIMELINE
2 EVENTSMAR 20
Introduced in House
MAR 20
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 8034
Congress119th
StatusIn Committee
IntroducedMar 20, 2026
Last actionMar 20, 2026
READER REACTIONS
OVERALL SENTIMENT
No reactions yet. Be the first to weigh in.
Discussion
Loading comments...
IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAR 20, 2026
House BillHR 8034Taxation
Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
INTRODUCED MAR 20, 2026· LAST ACTION MAR 20, 2026
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
10
COMPLEXITY
Moderate
