Several tax benefits are unique to the energy business.
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100% deductibility of initial risk capital in the year of investment (IDCs)
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100% deductibility of all capital invested within 7 years, win or lose (TDCs)
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Limited taxability of returns, a portion of oil and gas returns are tax-free (Depletion Allowance)
This is not intended as tax advice. For information about how these tax benefits affect you, consult your tax professional.