Bill · S. 4604· Senate(119-S-4604)
Protecting America’s Small Oil and Gas Producers and Rural Jobs Act
- Introduced
- 5/20/2026
- Last activity
- 5/20/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Roger Marshall
- Cosponsors
- - 7 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Protecting America's Small Oil and Gas Producers and Rural Jobs Act," aims to amend the Internal Revenue Code of 1986. It specifically seeks to modify certain percentage depletion rules regarding oil and gas wells. The legislation changes how the applicable percentage is calculated for marginal properties and introduces a PPI adjustment for the $70 threshold. It also removes the taxable income limitation for certain depletion allowances and increases the depletable oil quantity from 1,000 barrels to 2,000 barrels. These changes are intended to take effect for taxable years beginning after December 31, 2026.
Yes· 3 of 8
Does this cut taxes for small businesses?+6
The bill reduces tax burdens for small oil and gas producers by modifying percentage depletion rates and removing income limitations.
Would business owners be better off under this?+6
The bill provides significant tax advantages for business owners in the oil and gas sector.
Does this make it easier to run a small business?+5
The bill provides specific tax relief mechanisms designed to aid small oil and gas producers.
The opposite
Does this reduce how much oil, gas and coal is produced?-2
The bill incentivizes continued fossil fuel production through enhanced depletion allowances.
Who it would affect, and how
Potential Positive Impacts for People
-
Modified Percentage Depletion Rate: The bill changes the calculation for the applicable percentage for marginal properties, starting with a base of 15 percent and adding 1 percentage point for every whole dollar that the reference price for crude oil exceeds $70 (Section 2(a)).
-
PPI Adjustment: For taxable years after 2027, the $70 amount can be increased based on the Producer Price Index (PPI) for drilling oil and gas wells, which helps account for inflation (Section 2(a)).
-
Removal of Income Limitations: The bill removes the taxable income limitation for the depletion allowance determined under specific subparagraphs, which affects how much can be claimed (Section 2(b)).
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Increased Depletable Oil Quantity: The amount of depletable oil used in calculations is increased from 1,000 barrels to 2,000 barrels (Section 2(c)).
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Small Business Taxes+6Improves Small Business Support+5Increases Job Creation+3Improves Economic Growth+2
- Demographic And Interest Groups
- Good For Business Owners+6Good For Rural Residents+4Good For Farmers+2
- Environment Energy And Infrastructure
- Improves Rural Development+4Reduces Fossil Fuel Production-2
- 7/30/2026
- 1 Cosponsor added.
- 6/23/2026
- 1 Cosponsor added.
- 6/16/2026
- 2 Cosponsors added.
- 6/8/2026
- 1 Cosponsor added.
- 5/20/2026
- Read twice and referred to the Committee on Finance.
- 2 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Bill CassidyRepublican · Louisiana
Steve DainesRepublican · Montana
James LankfordRepublican · Oklahoma
Jerry MoranRepublican · Kansas
Bernie MorenoRepublican · Ohio
David McCormickRepublican · Pennsylvania
Pete RickettsRepublican · Nebraska