Promoting Domestic Energy Production Act

This bill changes how companies count certain oil and gas drilling costs when they figure their “adjusted financial statement income” for tax purposes. It lets companies include intangible drilling and development costs (like planning, site prep, and similar non-physical expenses) in that calculation. It also tells companies to ignore some book expenses for depreciation and depletion when figuring this income, so the tax calculation lines up better with what they can deduct on their tax return.

The change applies to tax years starting after December 31, 2025.

• Who is affected: Businesses with oil and gas drilling costs.
• What changes: Drilling-related intangible costs can be counted in adjusted financial statement income; certain book depreciation and depletion amounts are ignored in that calculation.
• When: For tax years beginning after 2025.