Eliminates and limits a broad set of tax preferences for oil and gas activities: it restricts use of LIFO for large oil companies, tightens foreign tax‑credit treatment for payments tied to foreign oil and gas income, expands the statutory definition of “crude oil,” and repeals or phases out multiple credits and special deductions (marginal well credit, enhanced oil recovery credit, tertiary injectants deduction, percentage depletion, intangible drilling cost treatment, and an active‑interest passive‑loss exception). Most changes apply to taxable years beginning after December 31, 2024, with a few items effective on enactment or for property placed in service after that date.

The package changes accounting, amortization, and depletion rules, removes targeted production incentives, and adjusts qualified business income treatment for oil and gas activities — raising tax liabilities and compliance work for producers, refiners, investors, and their tax advisers while increasing federal revenue from the sector.