As many of us might already know the industry of gas and oil was always on the top, a “hot topic” drivers used to always talk about. Gas prices are on the bottom now and we can afford maintaining our gasoline cars, but these kind of situations always have some cover-ups we forget about.
If we go back a bit in 2005, we would remember about the marginal well tax credit that was created by government, in order to protect small oil producers when times get tough for them, and looks like those times are already here! This tax credit is worth 25%, 50% or even 100% of the extraction tax producer would owe, depending on how long the low prices continue. The tax isn't available for every oil producer company, it is targeted to those companies that have an average 15 barrels or less each day for three months. In 2016 this tax was paid for the first time, because we're finally at the low levels the law mentioned about, under $30 and over $25 for a barrel of oil.
The senior manager of Washington National Tax, Brian Americus, confirmed that nobody has asked for this credit yet, but because of the low gas taxes it'll be available for the first time.
