Small Producers Tax Exemption

The 1990 Tax Act introduced tax advantages for investors in oil and gas drilling projects through the "Small Producers Exemption". Under this provision, investors can enjoy tax-free treatment of up to 15% of their gross income from an oil and gas property, subject to specific limitations. Notably, this benefit is not extended to large companies or taxpayers engaged in retail sales of oil or natural gas, or those with refining capacities exceeding 50,000 barrels per day. Investors with daily production exceeding 1,000 barrels of oil or 6,000,000 cubic feet of gas are also ineligible. Additionally, the drilling operations of our Joint Venture qualify for "Percentage Depletion" tax benefits. It's important for each investor to claim the "Small Producers Exemption" on their annual tax return if applicable.

The Benefit

As an investor in Oxbow EP's drilling program, you'll benefit from collaborating with a dedicated small business operating within one of the world's largest industries while qualifying for tax incentives.

Oxbow EP is pleased to offer every benefit available

This added advantage is one we are proud to provide for you.