Gas Industry Lobbying for Lucrative Tax Breaks

From the Marcellus Shale Examiner newsletter

With a vote on a severance tax expected by Oct. 1, gas companies are already lobbying to avoid paying their fair share. The proposals—circulated by the Marcellus Shale Coalition, an industry-financed group—would reportedly exempt proceeds from deep natural gas wells from taxes for the first three years of production—the period when output and revenues for the companies are greatest.

The industry is pushing for tax exemptions for shallow and low-producing wells, including Marcellus wells in later years when production greatly declines. A report by the Pennsylvania Budget and Policy Center in June found that these exemptions would mean gas companies could avoid paying taxes on up to two-thirds of the gas they produce.