9902RE: [hreg] Depletion allowance.
- Jun 28 10:19 AM
Great idea, Bill! Cost/benefit analyses I’ve read for depletion allowances found that the allowances were not cost effective and did not achieve the desired objective of helping better manage oil and gas reservoirs. Requiring long term investment in renewables would be a much better use of the tax incentive.
From: email@example.com [mailto: firstname.lastname@example.org ] On Behalf Of William S
Sent: Monday, June 28, 2010 9:21 AM
Subject: [hreg] Depletion allowance.
I had a thought. The depletion allowance for the oil companies is to compensate them for the depletion of the resource. (15% of gross revenue) We all know that oil is finite - we are transitioning to the harder to get oil. I wish there was a way to divert the depletion allowance to require the oil companies to invest in solar, and sustainability. This is a business decision, and some of the oil companies are doing this - BP Solar for instance. The depletion allowance provision in the tax code needs to be re-written to encourage investment in longer term energy sources.
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