Wyoming Considers Tax Relief For Oil & Gas

One thing that is often confused is the difference between tax breaks and subsidies.

A tax break allows a company to keep the money that they earned selling their product. They are allowed to keep a bit more of it if they engage in activity that promotes jobs and strengthens the economy.

A subsidy is when government takes money from the general public through taxation, then gives it to a business with the understanding that the business will use it to grow.

Wyoming legislators are once again looking at bigger tax breaks for oil and gas companies operating in the state. The bill is seen as "relief" for what is coming from the Biden Administration and the oil-price crash of 2020 as well as the stalled economy due to COVID-19.

Proponents, including Gov. Mark Gordon, say the bill is needed to bolster against the restrictive policies coming from the Biden administration.

Gordon recently highlighted House Bill 11– oil and gas production tax exemption as part of his initiative to boost Wyoming’s energy, tourism and agriculture industries.

Anything Wyoming can do to incentivize continued production and new oil and gas drilling is going to be critical for the industry, Petroleum Association of Wyoming President Pete Obermueller said. (WyoFile).

“It will help to incentivize people to make the decision to reinvest and restart in Wyoming, as opposed to Texas or North Dakota or Oklahoma or any competitor states — all of which are cheaper to drill in already than Wyoming,” Obermueller said. (WyoFile).

HB 11 is estimated to cost $13.5 million in lost revenue. On the other hand, it may just help keep these industries afloat.