Louisiana Governor- Signs NEW PRO Oil and Gas Drilling Incentives for LOUISIANA.
It was also about time that the government realized that it is a good idea to support the oil industry in their state, we will have a big impact on US independence from foreign oil!
So support the oil industry, invest in domestic oil and gas extraction, it creates growth in terms of jobs, and economic prosperity for all.
Louisiana Governor Jeff Landry has signed new legislation aimed at providing oil and gas drilling incentives. According to The Energy Law Blog, these incentives include reduced severance tax rates and changes to the definition of "qualified accountants" for well-cost statements.The goal is to make Louisiana more competitive in attracting oil and gas investment and jobs.Specifically, the legislation includes:
- Lowered Severance Tax:House Bill 600 reduces the severance tax rate on oil from 12.5% to 6.5% for wells completed after June 30, 2025.
- Revised Severance Tax for Incapable Wells:The special rate for oil from incapable wells is changed from one-half of the regular rate to 6.25%.
- "Qualified Accountant" Definition:The definition of "qualified accountants" for certifying well-cost statements is expanded to include licensed CPAs in good standing outside of Louisiana.
- Agency Reorganization:The Department of Energy and Natural Resources (DENR) is reorganized and renamed the Department of Conservation and Energy (DCE), effective October 1.
These changes are intended to stimulate drilling activity and attract investment in the state's energy sector.