Biden plan to end fossil fuel subsides unlikely to succeed
Tax breaks are estimated at $15-20 billion/year. An example tax break is 'intangible drilling costs' that allows producers to deduct the majority of the cost of drilling new wells. The percentage depletion tax break which allows independent producers to recover development costs of declining oil gas and coal reserves. Moderate Democrats from fossil fuel producing states, like Senators Martin Heinrich of New Mexico and Joe Manchin of West Virginia, the top Democrat on the Senate Energy Committee, could stymie the effort [to remove these tax breaks]. The American Petroleum Institute, the country’s biggest oil and gas lobby group, will “advocate for a tax code that supports a level playing field for all companies regardless of economic sector,”