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H.R. 8034119th CongressIn committeeLatest action Mar 20, 2026Decoded by AI · checked against the record
Official title: Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
HR 8034 expands percentage depletion tax deductions for marginal well operators, doubling the barrel cap to 2,000/day starting in 2027.
50-second read · 4 questions answered below
HR 8034 changes how percentage depletion tax deductions are calculated for small oil and gas producers, linking higher deduction rates to lower crude oil prices while keeping the existing 25 percent cap. The bill doubles the daily production limit eligible for this deduction from 1,000 to 2,000 barrels per day. It also removes the current rule that restricts the deduction based on a company's taxable income.
The bill directly affects small, independent oil and gas producers who operate marginal wells, which are low-output wells often located in rural areas. Rural communities near those wells may also be affected, as well operations support local jobs and tax revenue.
If enacted, qualifying producers would pay less in federal taxes, particularly when oil prices are low, which could reduce the financial pressure to shut down older, low-output wells. The changes would take effect starting with the 2027 tax year.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Ways and Means.