One of the most significant advantages for oil and gas investors is the tax benefits available. The United States is motivated to reduce its reliance on foreign oil supplies by increasing domestic production, for political and economic reasons. Since most of the foreign oil supplies we obtain come from an area of the world that is typically unstable, finding different sources can lead to stabilization of the U.S. economy.
To encourage additional domestic production, investment is required, and Congress has created a large number of incentives to encourage highly qualified investors to take the risk. The tax advantages from investing in oil and gas are additional to the potential revenue generated by the investment. Certain types of investments, such as direct participation programs, offer the most significant benefits. Learn more.