Energy Investing - Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges - Energy Investing - InvestorVillage
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Msg  299246 of 308276  at  12/1/2020 5:38:27 PM  by

Ed Ajootian


 In response to msg 299244 by  ScottMc
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Re: Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges

 Scott, I'm pretty sure that the consequences of not allowing a deduction for IDC is that the IDC costs would then be considered additional costs related to the well, to be added to the tangible costs of the well.  The tangible costs of the well have never been deductible, but rather have to be capitalized and depreciated over a 7 yr. period.  Due to a special tax law change passed a few years ago, for any assets placed in service before 1/1/23 you get to take a deduction for 100% of the cost of that asset in the year it was placed in service (in effect giving you the same benefit that you would get if you got to take a deduction for IDCs).
 
The above is why I was surprised to see such a high figure for additional tax collections from repealing the IDC deduction.  At worst its just a timing issue.


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Replies
Msg # Subject Author Recs Date Posted
299247 Re: Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges Hombre77 22 12/1/2020 6:02:20 PM
299269 Re: Biden Plan to End Fossil Fuel Subsidies Faces Big Challenges Wilk 2 12/2/2020 1:03:36 AM








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