Post by pavel on Apr 3, 2016 20:56:00 GMT -6
Tax commission: $158 million in state rebates for unprofitable wells estimated for next year
It’s become one of the state’s biggest tax breaks almost overnight.
The Oklahoma Tax Commission estimates the state will pay out $158 million in rebates next year to operators of “economically at-risk” wells that are no longer profitable at current oil and gas prices.
Two years ago, before prices plunged, those rebates totaled just $11 million.
The intent of the tax breaks is to cushion the blow of low prices on well operators and extend production from wells that otherwise might be shut down, either temporarily or permanently.
According to state officials and oil industry advocates, scores of well operators across the state are expected to take advantage of the at-risk rebate. In many cases, the state will wind up refunding most of the gross production taxes that operators paid during the previous year, officials said.
Read more: www.tulsaworld.com/news/state/tax-commission-million-in-state-rebates-for-unprofitable-wells-estimated/article_5b485cbe-dcf8-5b87-8e07-6e0e6845245f.html
It’s become one of the state’s biggest tax breaks almost overnight.
The Oklahoma Tax Commission estimates the state will pay out $158 million in rebates next year to operators of “economically at-risk” wells that are no longer profitable at current oil and gas prices.
Two years ago, before prices plunged, those rebates totaled just $11 million.
The intent of the tax breaks is to cushion the blow of low prices on well operators and extend production from wells that otherwise might be shut down, either temporarily or permanently.
According to state officials and oil industry advocates, scores of well operators across the state are expected to take advantage of the at-risk rebate. In many cases, the state will wind up refunding most of the gross production taxes that operators paid during the previous year, officials said.
Read more: www.tulsaworld.com/news/state/tax-commission-million-in-state-rebates-for-unprofitable-wells-estimated/article_5b485cbe-dcf8-5b87-8e07-6e0e6845245f.html