Eliminating a Tax Break for Big Oil (H.R. 1426)

What is H.R. 1426?

(Updated January 31, 2017)

This bill would eliminate a tax break for big oil companies--those companies that have an average daily global production of crude oil of at least 500,000 barrels and gross receipts exceeding $1 billion. The five companies the bill targets--Chevron, BP, ExxonMobil, the Royal Dutch Group (which owns Shell), and ConocoPhillips--reported a total of $118 billion in profits in 2012. The tax credit the bill would eliminate allows companies to deduct 6% of their tax liability from annual income derived from domestic oil production. 

Argument in favor

These multi-billion dollar ,multinational oil companies can and should pay their taxes.

Argument opposed

To counterbalance the loss of the tax credit, Big Oil will simply raise the price at the pumps.

Impact

The bill impacts tax deductions for major oil companies.

Cost of H.R. 1426

Would reduce deficits by $9.2 billion over the next decade.

Additional Info

Of Note: