Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

2.204 -Excess Natural Resource Depletion Allowance

Item DescriptionFY2012 FY2013 FY2014
2.204 Excess Natural Resource Depletion Allowance
Taxpayers in extractive industries (mining or drilling for natural resources) may deduct a percentage of gross mining income as a depletion allowance ("percentage depletion") even if the cost basis of the property has been reduced to zero. The deduction may not exceed 50% (in some cases, 100%) of net income from the property. In the case of oil and gas, percentage depletion is available only to domestic oil and gas sold by "independent producers" (nonintegrated companies). The excess of the deduction, which is available using the percentage of gross income method of depletion over a depletion deduction based on cost, is a tax expenditure.

Origin:  IRC, S. 613, 613A; M.G.L. c. 63, S. 30.3.
Estimate:  $0.1
0.1 0.1 0.1


IRCFederal Internal Revenue Code (26 U.S.C.)
M.G.L. Massachusetts General Laws
U.S.C United States Code
ESTIMATES All estimates are in $ millions.

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