H.R. 662House119th Congress (2025-2027)In Committee

Promoting Domestic Energy Production Act

AI-Generated Summary

Updated November 24, 2025 at 3:19 AM UTC

The Promoting Domestic Energy Production Act changes the tax code to let oil and gas producers treat intangible drilling and development costs differently when they calculate adjusted financial‑statement income. By adjusting how depreciation and depletion expenses are handled, the bill aims to reduce the tax burden on domestic energy production. The new rules apply to tax years starting after the end of 2025.

Key Provisions

Amends Internal Revenue Code §56A(c)(13) so that when calculating a company’s adjusted financial‑statement income, depreciation deductions (under §167) and certain expense deductions (under §263(c)) are subtracted only to the extent they are allowed for taxable‑income purposes.
Requires taxpayers to ignore (disregard) any depreciation expense reported on their financial statements and any depletion expense related to intangible drilling and development costs when computing adjusted financial‑statement income.
The changes take effect for taxable years beginning after December 31, 2025.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 23, 2025

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HouseIntro Referral

Introduced in House

January 23, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 23, 2025

Bill Text

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Introduced in HouseIssued January 23, 2025

119th CONGRESS

1st Session

H. R. 662

IN THE HOUSE OF REPRESENTATIVES

January 23, 2025

Mr. Carey (for himself, Mr. Vicente Gonzalez of Texas, Mr. Langworthy, Mr. Rulli, Mr. Davidson, Mr. Crenshaw, Mr. Zinke, Mr. Balderson, Mr. Veasey, Mr. LaHood, Mr. Carter of Texas, Mr. Meuser, Mr. Thompson of Pennsylvania, Mrs. Miller of Illinois, Mr. Hern of Oklahoma, Ms. Tenney, Mrs. Miller of West Virginia, Mr. Williams of Texas, Mr. Cuellar, Mr. Hunt, Mr. Mann, Mr. Miller of Ohio, Mr. Cole, Mr. Weber of Texas, Mr. Newhouse, Mr. McDowell, Mr. Fallon, Ms. Van Duyne, Mr. Murphy, Mr. Ellzey, Mr. Babin, Mr. Evans of Colorado, Mr. Goldman of Texas, and Ms. Malliotakis) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow intangible drilling and development costs to be taken into account when computing adjusted financial statement income.

Short title

This Act may be cited as the Promoting Domestic Energy Production Act.

Intangible drilling and development costs taken into account for purposes of computing adjusted financial statement income

(a)

In general

Section 56A(c)(13) of the Internal Revenue Code of 1986 is amended—

(1)

by striking subparagraph (A) and inserting the following:

(A)

reduced by—

(i)

depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and

(ii)

any deduction allowed for expenses under section 263(c) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and

, and

(2)

by striking subparagraph (B)(i) and inserting the following:

(i)

to disregard any amount of—

(I)

depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and

(II)

depletion expense that is taken into account on the taxpayer’s applicable financial statement with respect to the intangible drilling and development costs of such property, and

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.