HB302 Alabama 2011 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2011

Title

Oil and gas, taxation, depletion allowance altered, limited to federal depletion allowance, Sec. 40-18-35 am'd.

Summary

HB302 would cap Alabama's oil and gas depletion deduction to the federal depletion allowance.

What This Bill Does

If passed, the bill amends Alabama's tax code to limit the state's depletion deduction for oil and gas to the same amount allowed by federal depletion. This could reduce Alabama's deduction compared to prior rules, aligning it with federal rules. The change applies to tax years beginning after December 31, 2011.

Who It Affects

• Oil and gas producers and others who claim the Alabama depletion deduction on oil and gas income (their state tax deduction would be limited to the federal amount).
• Alabama Department of Revenue and tax preparation professionals who administer and apply the state's depletion deduction rules.

Key Provisions

• The state depletion allowance for oil and gas is limited to the amount allowed by the federal depletion allowance.
• Effective for tax years beginning after December 31, 2011; the amendment modifies Section 40-18-35.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Oil and Gas