119th (2025–2027)
S. 224
S. 224 modifies the tax code to give oil and gas companies more favorable tax treatment for their drilling costs. Specifically, the bill allows companies to deduct "intangible drilling and development costs"—expenses related to exploring and preparing oil and gas wells—when calculating their adjusted income for tax purposes, rather than being forced to capitalize these costs over time. The legislation affects oil and gas producers and exploration companies by potentially reducing their taxable income and, consequently, their federal tax liability. The bill contains no specific funding mechanism since it operates through tax code changes, and the new rules take effect for tax years beginning after December 31, 2025.