Tax Policy: Investment Tax Credit for Offshore Drilling Rigs Needs Clarification
GGD-86-65
Published: Apr 10, 1986. Publicly Released: Apr 10, 1986.
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Highlights
GAO presented: (1) information on the history of investment tax credit and the applicable exceptions for offshore drilling rigs; (2) the basis on which the Internal Revenue Service (IRS) allows the credit for such rigs; and (3) estimates of the dollar amounts of credit that have been available for offshore drilling rigs placed after 1975 and used outside the designated portion of the Western Hemisphere.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| If the investment credit is not repealed, Congress should consider clarifying the circumstances under which the investment tax credit is allowed for offshore drilling rigs used outside the northern portion of the Western Hemisphere. | Provisions for repealing the investment credit are contained in the Tax Reform Act of 1986, which was signed by the President on October 22, 1986. |
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Federal propertyFederal taxesForeign owned real propertyLiability (legal)Offshore oil drillingTax creditMilitary forcesDepreciationTaxesAdministrative law