Pelosi to tout Dem plan to repeal oil industry tax breaks

The energy package, the aide said, would eliminate $32 billion worth of incentives over 10 years for the five largest oil companies.

In particular, it would strip their ability to claim a deduction that’s linked to domestic manufacturing and production income; prevent use of the “Last-In, First-Out” accounting method; and prevent immediate write-offs of “intangible” drilling costs.

Another provision – which Rep. Ed Markey (D-Mass.) has been pushing for years – would seek to amend late-1990s Gulf of Mexico oil-and-gas leases that currently allow royalty waivers even when petroleum prices are high.

It prevents companies from receiving any new leases until they agree to so-called price thresholds in the years-old leases, which would ensure royalties are paid when oil and natural gas prices exceed certain limits.

Elsewhere, the Democrats’ package would give the Federal Trade Commission and states new powers to penalize gasoline “price gouging,” and “give President new authority to draw down from the SPRO to combat market manipulation,” among other provisions.

Democrats are hoping to force a vote Thursday on repealing big oil companies’ eligibility for the Section 199 domestic manufacturing deduction.

They’re planning to use a procedural maneuver when the House considers the rule for floor debate on the GOP drilling legislation (much more on that here and here).