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james lankford
Senate Dems Demand Explanation After Big Oil Lobbied for 'Giveaways at the Expense of American Families'
The fossil fuel industry spent big to push through a $1 billion provision in the GOP budget bill, which the senators said would allow some oil companies to "pay no federal income taxes whatsoever."
Jun 27, 2025
Four Democratic U.S. senators are demanding an explanation from Big Oil after a $1.1 billion tax loophole was added to the Senate version of the GOP's budget reconciliation megabill.
Letters sent Thursday by Sens. Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), Sheldon Whitehouse (D-R.I.), and Chuck Schumer (D-N.Y.) called out the CEOs of two oil giants, ConocoPhillips and Ovintiv, which they say "lobbied furiously" for the handout.
The companies, the senators said, "[stand] to benefit tremendously from this provision and ha[ve] spent big to support it—while preserving the many government subsidies for the oil and gas industry already in the tax code."
They asked for the companies to disclose how much they have spent lobbying Republicans for the tax break and how much of a windfall they expect in return.
The provision in question, approved by the Senate Finance Committee last week, would shield many large oil companies from the Inflation Reduction Act's corporate alternative minimum tax, or CAMT. Introduced in 2022, the CAMT requires that companies making more than $1 billion pay 15% of the profits they report to shareholders.
"The rationale for CAMT was simple," the senators said. "For far too long, massive corporations had taken advantage of loopholes in the tax code to avoid paying their fair share, sometimes paying zero federal taxes despite earning billions in profits."
The GOP bill modifies how oil companies are required to report earnings, allowing them to exempt "intangible drilling and development costs," which in turn allows more companies to fall below the $1 billion earnings threshold.
The senators highlighted a 2023 earnings call by Marathon Oil, recently acquired by ConocoPhillips, in which executives said the CAMT was the only income tax they were required to pay.
"If enacted," the senators said, "this provision would reduce or even eliminate tax liabilities for oil and gas companies under CAMT, allowing some to pay no federal income taxes whatsoever."
The letter highlighted lobbying filings by ConocoPhillips and Ovintiv in which they "explicitly prioritize" securing this handout.
Referenced throughout is the aggressive effort to court Sen. James Lankford (R-Okla.), who wrote the loophole into the Senate bill. According to OpenSecrets, Lankford received more than $546,000 in campaign contributions from the oil and gas industry—his top source of industry donations—between 2019 and 2024.
The senators described the industry's lobbying as "especially insulting" because "Senate Republicans are trying to pay for this handout with cuts to other programs that would end up raising energy prices for everyday Americans."
The GOP bill would eliminate tax breaks for clean energy that incentivize consumers to purchase electric vehicles and make their homes more energy-efficient, including the home energy-efficiency and residential clean energy credits.
Citing data from Rewiring America, the senators estimated that ditching the two credits would cost the average household up to $2,200 per year in savings on utility bills.
The Center for American Progress projects that eliminating electric vehicle credits would increase demand for gasoline, raising prices by 27 to 35 cents per gallon by 2035. Americans will pay the oil and gas industry "an additional $339 billion for gasoline and $75 billion for electricity by 2035," the May report says.
" Congress should not raise energy prices for working families to deliver handouts to Big Oil," the senators said.
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Senate GOP Adds $1 Billion Tax 'Giveaway' for Big Oil to Budget Bill
That provision was secured by Senator James Lankford, who has received more than $546,000 in campaign contributions from the oil and gas industry since 2019.
Jun 20, 2025
Senate Republicans have added a provision to their draft of the budget reconciliation package that would exempt domestic oil and gas companies from paying corporate taxes, saving them more than $1 billion over the next decade.
On Wednesday, David Dayen reported in The American Prospect that the Senate Finance Committee's version of the bill, released Monday, "shields domestic onshore oil and gas drillers from the Inflation Reduction Act's corporate alternative minimum tax," or CAMT.
That provision was secured by Sen. James Lankford (R-Okla.), and the benefits would largely flow to companies based in his home state.
As Dayen wrote, the CAMT is "a fairly clean tax provision as these things go." It currently requires companies that bring in more than $1 billion to pay 15% of the profits they report to shareholders.
However, the Senate Republican draft would modify that calculation to account for "intangible drilling and development costs," which would allow companies to declare lower profits and put many of them below the threshold required to pay the 15% tax.
According to Bloomberg, companies including ConocoPhillips, Ovintiv, and Civitas Resources lobbied in favor of the bill. Lankford, meanwhile, received more than $546,000 in campaign contributions from the oil and gas industry—his top source of industry donations—between 2019 and 2024 according to OpenSecrets.
Big Oil will be rewarded handsomely for its efforts. The provision in the Senate GOP bill is virtually identical to another bill proposed by Lankford, which the nonpartisan Tax Foundation found would hand $1.1 billion in government revenue to the fossil fuel industry over the next 10 years.
"This disastrous piece of legislation includes giveaway after giveaway for the fossil fuel industry, while cutting crucial clean energy programs that help consumers save money on their electric bills," said Alan Zibel, an oil and gas researcher with the consumer rights group Public Citizen.
In addition to this tax loophole, the Senate GOP's bill includes billions of dollars in upfront subsidies to Big Oil and cuts royalties paid by oil and gas companies for drilling on public lands. At the same time, the bill guts subsidies for wind and solar energy, including a tax credit that saved money for consumers who made their homes more energy efficient.
Through its combination of tax breaks and cuts to safety net programs like Medicaid and food stamps, the so-called "Big Beautiful Bill" constitutes a massive transfer of wealth from the poor to the rich. According to an analysis by the Congressional Budget Office last week, it would result in the richest 10% of households bringing in an extra $12,000 a year while the poorest 10% would lose nearly $1,600.
"You have got to be kidding me," tweeted the account for Americans for Tax Fairness in response to the Senate GOP's draft. "Not only does the bill gut Medicaid and SNAP to fund tax breaks for billionaires. Now it gives Big Oil MORE money while they price-gouge us."
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Big Oil Doesn't Just Want to Get Rich Wrecking the Climate—They Want Lower Taxes Too
"If this polluter handout is snuck into the GOP tax bill, then cuts to Medicaid and food stamps could well pay for another giveaway to Big Oil," said the co-author of a new report. "That's obscene."
Mar 24, 2025
Having helped install the most fossil fuel-friendly administration of the climate awareness era, Big Oil and their Republican boosters in Congress are now setting their sights on undermining a tax enacted by during the tenure of former President Joe Biden as part of the landmark Inflation Reduction Act.
Alan Zibel, research director at the consumer advocacy watchdog Public Citizen, and Lukas Shankar-Ross, deputy director of Friends of the Earth's Climate and Energy Justice Program, noted in a report published Monday that Sen. James Lankford (R-Okla.), who chairs the Senate Ethics Committee, earlier this year introduced industry-backed legislation, the Promoting Domestic Energy Production Act, for possible inclusion in Republicans' proposed $4.5 trillion tax giveaway to corporations and the ultrawealthy.
As Common Dreams reported in January, the fossil fuel industry spent an estimated $445 million during the 2024 election cycle to elect President Donald Trump and other GOP candidates who serve their climate-wrecking interests, and it expects much in return.
"Domestic oil and gas companies, including from Lankford's home state of Oklahoma, have warned their investors about the corporate alternative minimum tax," Zibel and Shankar-Ross wrote. "The industry could soon be rewarded with specially tailored tax relief courtesy of their Republican political allies."
As the report explains:
Here's how the tax scheme works: In August 2022, President Joe Biden signed the Inflation Reduction Act, which made historic climate investments. To help pay for new spending, the bill included a set of corporate tax increases, the largest of which was the $222 billion corporate alternative minimum tax. This tax is meant to prevent corporations that deliver massive profits to investors from paying nothing or nearly nothing in taxes because of corporate-friendly tax loopholes. Under the corporate minimum tax, if a company reports an average of at least $1 billion in annual income over three years, then it must pay 15% of that reported income in taxes, minus certain deductions.
The report highlights Republican efforts to eliminate the minimum tax, including via legislation introduced by Sen. John Barrasso (R-Wyo.) and endorsed by the American Petroleum Institute, U.S. Chamber of Commerce, National Association of Manufacturers, National Mining Association, Western Energy Alliance, and industry lobbyists.
The bill introduced by Lankford would enable fossil fuel companies to skirt the minimum tax by allowing them to deduct "intangible" drilling costs, a tactic used as an effective subsidy for more than 120 years. Zibel and Shankar-Ross described the tax dodge as "the oldest and the largest fossil fuel subsidy on the books," and one which "allows all of the costs for drilling an oil or gas well to be deducted immediately in the year they are incurred."
"If individual taxpayers understood the magnitude of the extreme subsidies for Big Oil, they would be shocked."
"It is simply outrageous that the GOP is using its trifecta to create yet another fossil fuel subsidy," Shankar-Ross said in a statement, referring to Republicans' control of the White House and both chambers of Congress. "If this polluter handout is snuck into the GOP tax bill, then cuts to Medicaid and food stamps could well pay for another giveaway to Big Oil. That's obscene."
Zibel asserted that "oil and gas companies are using the political influence they purchased to dodge paying even a minimal part of their fair share."
"If individual taxpayers understood the magnitude of the extreme subsidies for Big Oil, they would be shocked," he added. "The newest effort to bypass even the most modest of tax bills by the industry is shocking, but sadly not surprising."
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