Tax Incentives for the Oil & Gas Industry

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Oil and gas companies operate in one of the most capital-intensive and technically complex industries, with ongoing investment in exploration, drilling, production facilities, infrastructure, and equipment. These projects often involve significant upfront and long-term capital expenditures, creating meaningful opportunities for tax savings that are frequently underutilized.

KBKG helps oil and gas companies identify and maximize tax incentives related to Research and Development (R&D) Tax Credits, Repair vs. Capitalization Review, Cost Segregation / Fixed Assets, Negotiated Incentives, and Transfer Pricing.

Our experienced team works to uncover overlooked deductions and credits, improve cash flow, and help energy companies fully leverage available federal and state tax benefits.

Oil & Gas Industry Tax Saving Opportunities

Cost Segregation for Buildings & Improvements

Any building acquisition or/and improvements over $1.5M should be reviewed for proper classification of the individual components for tax depreciation.

Repair vs. Capitalization Review §263(a)

Taxpayers often capitalize major building expenditures that could be claimed as current year deductions for repairs and maintenance such as HVAC units, roofs, parking lots and more.

Fixed Asset Review

Evaluating a company's entire fixed asset schedule to identify assets that can be optimized for federal and state tax purposes. Taxpayers utilizing the book method of accounting for tax are not maximizing their available deductions.

Research and Development (R&D) Tax Credit

Federal credit worth approximately 7% to 10% of qualified research expenditures related to designing, developing and improving processes, formulae, and software. State R&D tax credits may also be available, allowing eligible companies to maximize their tax benefits.

Transfer Pricing

Cross-border transfer prices drive how much income tax a multinational company pays by country. Transfer pricing regulations apply to the intercompany prices of goods, services, royalties, and loans across all industries. Many companies can realize significant tax savings through transfer pricing strategies.

Negotiated Incentives

KBKG helps businesses secure and maximize state and local incentive programs that reduce project costs and improve long-term return on investment.

Oil & Gas Industry Tax Insights

Questions to Ask Before Hiring an R&D Tax Credit Provider

Selecting an R&D tax credit provider is a risk-management decision. A research tax credit claim may ultimately be reviewed by the IRS or a state…

KBKG Tax Insight: How to Allocate Land vs. Building Values for Investment Property

Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Allocating an investment property’s purchase price between land and depreciable improvements directly affects the deductions available to the owner. Land cannot be depreciated, while buildings and qualifying site improvements may be depreciated over their applicable recovery periods. Purchase

179D After the Sunset: Why Designers Can Continue Claiming the Deduction for Years

Design firms should treat June 30, 2026, as a project-screening and documentation deadline. The construction-start date, placed-in-service year, and…

Tax Incentives for the Oil & Gas Industry

Find out if you qualify

Oil & Gas Industry Tax Saving Opportunities