Tax Incentives

The followings states have utilized the tax incentive program:

Alabama, Arkansas, California, Colorado, Florida, Kansas, Louisiana, Mississippi, Montana, New Mexico, North Dakota, Oklahoma and Texas.

The Enhanced Oil Recovery (EOR) Incentive.

The High-Cost Gas Incentive

Incentive to Market Previously Flared or Vented Casinghead Gas

The Two-Year Inactive Well Incentive

Severance Tax Relief for Marginal Wells

Enhanced Efficiency Equipment Severance Tax Credit (HB2161)

The Orphaned Well Reduction Program. (HB2161)

Incentive for Reuse/Recycling of Hydraulic Fracturing Water (HB 4)

Advanced Clean Energy - EOR Tax Reduction (HB 3732)

Contact a Micro-Bac representative to find out accurate and up-to-date tax incentives offered by your state for recovery projects.

The federal tax credit is a 15% tax credit for certain costs and expenses in the field. The three categories of this credit are:

Tangible property - 15% of any amount paid or incurred during the taxable year for tangible property that is necessary to the completion of the project. This includes pumping units, rods, tubing, heater treaters, WKO's, etc.
Intangible drilling and development costs - 15% of the cost to drill a producer, injector, supply well, etc.
Injectant expense - 15% of expenses related to the injectant.

This includes:

Expenses related to injected water, electrical costs for submersible pumps, injection pumps, etc.