Exploring Research and Development Tax Credits: Oil and Gas
Research and development (R&D) is paramount in the oil and gas industry, with more companies conducting deepwater exploration, exploring alternative fuels, expanding refining facilities, extracting oil from shale and bringing liquid natural gas terminals on-line. You can address the cost and risk of research and development (R&D) by leveraging available federal, state, and local tax incentives.
Initiatives that may be eligible for R&D tax incentives include:
- Design and development of advanced drilling techniques, both upstream and downstream
- Software development to improve resolution of reservoir interpretation and performance at the exploratory and development stages
- Improvements in efficiency and capability of coiled tubing technology
Whichever credit you explore, you must be prepared to defend reported R&D tax credits. The Deloitte Tax R&D team is a national practice of highly experienced tax professionals specializing in R&D tax incentives and includes former senior officials with the Internal Revenue Service (IRS) and Treasury who participated in drafting the legislation and regulations. These specialists can help you identify qualified R&D activities and assemble documentation to defend your claim, based on their extensive knowledge of the law and your industry.
The Deloitte Tax R&D approach includes a customizable tool that helps to automate the computation and information gathering, and a Quality Assurance team that reviews deliverables and computations.
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