S.4604

Protecting America’s Small Oil and Gas Producers and Rural Jobs Act

Introduced·5/20/26

Amends the Internal Revenue Code to modify percentage depletion rules for oil and gas wells.

The bill, Protecting America’s Small Oil and Gas Producers and Rural Jobs Act, amends the Internal Revenue Code to modify certain percentage depletion rules for oil and gas wells. It increases the depletable oil quantity calculation from 1,000 barrels to 2,000 barrels. The bill also modifies the percentage depletion rate calculation with respect to marginal properties, introducing a PPI adjustment factor. These changes apply to taxable years beginning after December 31, 2026.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Finance Committee
Next
Committee decision

Sponsors

Democratic CaucusRepublican Caucus

History

May 20

Senate

Read twice and referred to the Committee on Finance.