End Oil and Gas Tax Subsidies Act of 2025

Amortization of Geological and Geophysical Expenditures: This section changes the period for amortization from 24 months to 7 years, which alters how these costs are handled for tax purposes (Section 2).

Clarification of Crude Oil: The bill updates the definition of crude oil to explicitly include bitumen, oil derived from tar sands, and oil derived from kerogen-bearing sources for excise tax purposes (Section 12).

Repeal of Production Credits: The bill strikes section 45I, which relates to producing oil and gas from marginal wells (Section 3).

Repeal of Enhanced Oil Recovery Credit: The bill strikes section 43, removing the enhanced oil recovery credit (Section 4).

Changes to Intangible Drilling and Development Costs: The bill prevents taxpayers from applying certain subsections to amounts paid or incurred for oil or gas wells after December 31, 2024 (Section 5).

Repeal of Percentage Depletion: The bill strikes section 613A, which relates to percentage depletion for oil and gas wells (Section 6).

Repeal of Deduction for Tertiary Injectants: The bill strikes section 193, removing the deduction for tertiary injectants (Section 7).

Repeal of Passive Loss Exception: The bill terminates the exception to passive loss limitations for working interests in oil and gas properties (Section 8).

Restriction of Qualified Business Income: The bill removes the ability to claim a deduction for qualified business income for activities involving the production, refining, processing, transportation, or distribution of oil, gas, or primary products (Section 9).

Inventory Accounting Restrictions: The bill prohibits major integrated oil companies from using the last-in, first-out (LIFO) method for inventorying goods (Section 10).

Modifications to Foreign Tax Credits: The bill changes how amounts paid to foreign countries are considered for taxes in cases of dual capacity taxpayers (Section 11).