100% Oil Well Tax Write-Offs Explained | One Big Beautiful Bill (2025)

Oil Tax Benefits for 2025: New Law Unlocks Full Deduction

In this investor briefing, Sean Pruitt breaks down the massive changes brought by the One Big Beautiful Bill Act (OBBBA²), passed in 2025, which now allows 100% deduction of oil well investments in the year they are drilled.

Key Topics Covered:

• 📉 Intangible Drilling Costs (IDCs) - 70 - 85% of your investment, fully deductible.
• 🏗️ Tangible Drilling Costs (TDCs) - Equipment now fully deductible under new law.
• 🧾 Use your investment to offset W-2, 1099, business, or capital gains income.
• 💰 15% of oil income is tax-free under the depletion allowance¹.
• 🏛️ Full expensing and faster ROI for accredited investors, doctors, lawyers, and high earners.

With OBBBA, the IRS now allows you to deduct 100% of all drilling and equipment costs in year one. This is the most aggressive oil tax policy in decades, encouraging domestic production across 9 states and the Gulf.

🛢️ This is a must-watch for anyone earning over $200k/year and looking for powerful tax mitigation strategies backed by real production.