Oct 15 2001
Bill Provides Tax Credit for Non conventional Natural Gas Production
U.S. Senator Richard Shelby today introduced legislation to provide tax credits for innovative, nonconventional energy sources. The legislation, the "Nonconventional Natural Gas Reliability Act," would extend and expand Section 29 tax credits to encourage production of oil and gas from unconventional sources such as Coalbed Methane, Devonian Shale, Tight Rock Formations, and Tight Gas Sands.
Following the energy crisis of the 1970's, Section 29 of the Internal Revenue Code was enacted to provide a tax credit to encourage production of oil and gas from unconventional sources. The Section 29 benefits will expire at the end of next year. Senator Shelby's legislation extends the benefits for wells and facilities currently in production through 2006, and also provides Section 29 tax credits for qualifying new wells and facilities through 2009.
"Since the tragic events of September 11th, we have acted quickly and responsibly to address the most pressing and immediate needs of the country," said Shelby. "However, comprehensive energy legislation remains vitally important, and should not be delayed any longer. I believe that the Section 29 tax credit can address our goal of reducing the country's reliance on foreign energy sources by increasing our access to North American natural gas supplies."
"We cannot afford to ignore our long-term energy needs," added Shelby. "Giving section 29 a new lease on life will result in lower gas prices, and ultimately benefit American consumers."