Cost & Percent Depletion of Mines, Oil and Gas Wells, and other Natural Deposits
January 4, 2023 03:13 PM to All House Members
Circulated By
Representative George Dunbar
R House District 56
Memo
In the near future, I plan to reintroduce legislation that will align the Commonwealth’s Personal Income Tax (“PIT”) with the federal Internal Revenue Code for the purposes of calculating cost, and percent, depletion of mines, oil and gas wells, and other natural deposits.
Currently, Pennsylvania law does not provide this kind of depletion deduction for the PIT. While a regulation adopted in 2006 appears to provide for a cost depletion method for mines, oil and gas wells, other natural deposits, and timber, the documents required by the regulation make it unworkable for most taxpayers who otherwise would be able to take the deduction.
To promote consistency, my legislation would amend our state Tax Reform Code to provide for the cost, or percent, depletion of mines, oil and gas wells, and other natural deposits, in conformity with federal law. By addressing the underlying issue in this manner, I believe we will be providing much needed clarity and uniformity for hardworking Pennsylvania taxpayers who elect to deduct the depletion of these natural resources by either a cost or percent method.
I respectfully ask for your consideration in cosponsoring.
Currently, Pennsylvania law does not provide this kind of depletion deduction for the PIT. While a regulation adopted in 2006 appears to provide for a cost depletion method for mines, oil and gas wells, other natural deposits, and timber, the documents required by the regulation make it unworkable for most taxpayers who otherwise would be able to take the deduction.
To promote consistency, my legislation would amend our state Tax Reform Code to provide for the cost, or percent, depletion of mines, oil and gas wells, and other natural deposits, in conformity with federal law. By addressing the underlying issue in this manner, I believe we will be providing much needed clarity and uniformity for hardworking Pennsylvania taxpayers who elect to deduct the depletion of these natural resources by either a cost or percent method.
I respectfully ask for your consideration in cosponsoring.
Legislation
Document - Introduced as HB 81
Cost & Percent Depletion of Mines, Oil and Gas Wells, and other Natural Deposits
January 4, 2023 03:13 PM to All House Members
Circulated By
DUNBAR
Memo
In the near future, I plan to reintroduce legislation that will align the Commonwealth’s Personal Income Tax (“PIT”) with the federal Internal Revenue Code for the purposes of calculating cost, and percent, depletion of mines, oil and gas wells, and other natural deposits.
Currently, Pennsylvania law does not provide this kind of depletion deduction for the PIT. While a regulation adopted in 2006 appears to provide for a cost depletion method for mines, oil and gas wells, other natural deposits, and timber, the documents required by the regulation make it unworkable for most taxpayers who otherwise would be able to take the deduction.
To promote consistency, my legislation would amend our state Tax Reform Code to provide for the cost, or percent, depletion of mines, oil and gas wells, and other natural deposits, in conformity with federal law. By addressing the underlying issue in this manner, I believe we will be providing much needed clarity and uniformity for hardworking Pennsylvania taxpayers who elect to deduct the depletion of these natural resources by either a cost or percent method.
I respectfully ask for your consideration in cosponsoring.
Currently, Pennsylvania law does not provide this kind of depletion deduction for the PIT. While a regulation adopted in 2006 appears to provide for a cost depletion method for mines, oil and gas wells, other natural deposits, and timber, the documents required by the regulation make it unworkable for most taxpayers who otherwise would be able to take the deduction.
To promote consistency, my legislation would amend our state Tax Reform Code to provide for the cost, or percent, depletion of mines, oil and gas wells, and other natural deposits, in conformity with federal law. By addressing the underlying issue in this manner, I believe we will be providing much needed clarity and uniformity for hardworking Pennsylvania taxpayers who elect to deduct the depletion of these natural resources by either a cost or percent method.
I respectfully ask for your consideration in cosponsoring.
Document
Introduced as HB 81
Generated 04/20/2025 06:24 AM