EXCLUSIVE: How Sen. James Lankford secured a win for American energy states in One Big, Beautiful Bill

THE LOWDOWN:

• American energy producers scored a huge win in the Senate’s final version of the One Big, Beautiful Bill Act thanks to Sen. James Lankford (R., Okla.)

• Under the Democrats’ Inflation Reduction Act (IRA), energy companies were targeted by what Lankford and other energy advocates view as an unfair policy, the Corporate Alternative Minimum Tax (CAMT).

• Lankford’s provision, the Promoting Domestic Energy Production Act, was included in the final version of the One Big, Beautiful Bill Act. The bill rebalances the scales by allowing IDCs to “be included when calculating adjusted financial statement income under CAMT by treating energy producers the same as other sectors.”

• This win didn’t come without a fight, however. Sen. Ed Markey (D., Mass.) attempted to strike all of the oil provisions in Lankford’s work, relying on the standard Democratic Party accusation that “Republicans are in the pocket to [sic] the big oil, big gas, big coal industry.”

American energy producers scored a huge win in the Senate’s final version of the One Big, Beautiful Bill Act thanks to Sen. James Lankford (R., Okla.).

Lankford defeated an ill-fated attempt by Senate Democrats to gut a longstanding tax policy that is critical for the American energy industry.

Under the Democrats’ Inflation Reduction Act (IRA), energy companies were targeted by what Lankford and other energy advocates view as an unfair policy, the Corporate Alternative Minimum Tax (CAMT).

The CAMT “penalizes energy investment, increases costs, and places American producers at a disadvantage,” Lankford argues, because oil and gas producers are prohibited from deducting Intangible Drilling Costs (IDCs) — which are key to safe and efficient domestic energy.

Those IDCs “make up roughly 85 percent of the costs for new exploration and production, which include labor costs,” per Lankford.

“Allowing timely deductions helps producers reinvest more quickly, supporting job creation and continued exploration, especially in rural communities,” he continued.

“This is good tax policy to promote American energy dominance,” Lankford exclusively told the Reporter following his legislative win. “The IDC fix reverses the 2021 tax penalty Democrats placed on America’s energy producers and allows our producers to deduct essential capital costs just like any other manufacturer.”

Lankford’s provision, the Promoting Domestic Energy Production Act, was included in the final version of the One Big, Beautiful Bill Act. The bill rebalances the scales by allowing IDCs to “be included when calculating adjusted financial statement income under CAMT by treating energy producers the same as other sectors.”

This win didn’t come without a fight, however. Sen. Ed Markey (D., Mass.) attempted to strike all of the oil provisions in Lankford’s work, relying on the standard Democratic Party accusation that “Republicans are in the pocket to [sic] the big oil, big gas, big coal industry.”

Joining Markey in failed attempts to sink Lankford’s work were Sens. Sheldon Whitehouse (D., R.I.) and Sen. Mark Kelly (D., Ariz.), who also filed — sub subsequently retracted — amendments as well that would strike the IDC provision.

Groups like the American Petroleum Institute (API) lauded Lankford for his work in the bill.