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Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
To amend the Internal Revenue Code of 1986 to modify certain percentage depletion rules with respect to oil and gas wells.
Summary
The bill would increase tax deductions for small oil and gas producers on marginal properties (low-producing wells). It would increase the percentage depletion deduction rate from a base of 15% up to 25%, with the rate increasing for lower oil prices and adjusted for inflation after 2027. The bill would remove the normal limitation that caps depletion deductions at 50% of taxable income for marginal properties. Additionally, it would increase the definition of a marginal oil well from 1,000 to 2,000 barrels per day. These changes would take effect for tax years beginning after December 31, 2026.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Marshall, Roger [R-KS] (R-KS)
7 cosponsors
- Sen. Cassidy, Bill [R-LA] (R-LA)
- Sen. Daines, Steve [R-MT] (R-MT)
- Sen. Lankford, James [R-OK] (R-OK)
- Sen. McCormick, David [R-PA] (R-PA)
- Sen. Moran, Jerry [R-KS] (R-KS)
- Sen. Moreno, Bernie [R-OH] (R-OH)
- Sen. Ricketts, Pete [R-NE] (R-NE)
Money behind the sponsor
Top reported contributors to Roger Marshall’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
- NULL $46,314
- PYRAMID SOUND $19,800
- GROWITZ EQUITY $13,200
- SPECCHEM $13,200
- ONYX EQUITY PARTNERS $13,200
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Roger Marshall → · Outside spending →
Actions (2)
- May 20, 2026 Read twice and referred to the Committee on Finance. · senate
- May 20, 2026 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Text versions (1)
Bills are re-published as they move (Introduced → Reported → Engrossed → Enrolled …). Each stage below is a separate text; pick two to see what changed. Data from Congress.gov.
Full text
IN THE SENATE OF THE UNITED STATES
May 20, 2026
Mr. Marshall (for himself, Mr. Cassidy, and Mr. Moran) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to modify certain percentage depletion rules with respect to oil and gas wells.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Protecting America’s Small Oil and Gas Producers and Rural Jobs Act”.
SEC. 2. MODIFICATION OF CERTAIN PERCENTAGE DEPLETION RULES WITH RESPECT TO OIL AND GAS WELLS.
(a) Percentage Depletion Rate Calculation Modified With Respect to Marginal Properties.—Section 613A(c)(6)(C) of the Internal Revenue Code of 1986 is amended to read as follows:
“(C) Applicable percentage.—
“(i) In general.—For purposes of subparagraph (A), the term ‘applicable percentage’ means the percentage (not greater than 25 percent) equal to the sum of—
“(I) 15 percent, plus
“(II) 1 percentage point for each whole dollar by which $70 exceeds the reference price for crude oil for the calendar year preceding the calendar year in which the taxable year begins. For purposes of this paragraph, the term ‘reference price’ means, with respect to any calendar year, the reference price determined for such calendar year under section 45K(d)(2)(C).
“(ii) PPI adjustment.—
“(I) In general.—In the case of any taxable year beginning in a calendar year after 2027, the $70 amount in clause (i)(II) shall be increased by an amount equal to— “(aa) such dollar amount, multiplied by “(bb) the PPI adjustment factor for such calendar year.
“(II) PPI adjustment factor.—For purposes of subclause (I), the PPI adjustment factor for any calendar year is the percentage (if any) by which— “(aa) the PPI for the preceding calendar year, exceeds “(bb) the PPI for calendar year 2026.
“(III) PPI for any calendar year.—For purposes of subclause (II), the PPI for any calendar year is the average of the Producer Price Index for Drilling Oil and Gas Wells, as published by the Bureau of Labor Statistics of the Department of Labor, as of the close of the 12-month period ending on August 31 of such calendar year.”.
(b) Nonapplication of Taxable Income Limitation With Respect to Marginal Properties.—Section 613A(c)(6) of such Code is amended by adding at the end the following new subparagraph:
“(H) Nonapplication of taxable income limitation.—With respect to so much of the allowance for depletion as is determined under subparagraph (A)—
“(i) subsection (d)(1) shall not apply, and
“(ii) the second sentence of subsection
(a) of section 613 shall not apply.”.
(c) Depletable Oil Quantity Calculation Modified.—Section 613A(c)(3)(B) of such Code is amended by striking “1,000 barrels” and inserting “2,000 barrels”.
(d) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2026. <all>
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