HR-662 : Still Just a Bill

The "Promoting Domestic Energy Production Act," also known as H.R. 662, proposes amendments to the Internal Revenue Code of 1986, specifically Section 56A(c)(13). The bill aims to modify the calculation of adjusted financial statement income by:

• Allowing deductions for intangible drilling and development costs, aligning them with deductions permitted for computing taxable income.
• Excluding depletion expenses related to intangible drilling and development costs from being disregarded on the taxpayer's financial statement.

In essence, this bill seeks to ensure that companies can account for intangible drilling and development costs when determining their adjusted financial statement income.

The changes, if enacted, would apply to taxable years starting after December 31, 2025.