Share with your friends

IRS practice unit: Overview of the enhanced oil recovery tax credit

Overview of the enhanced oil recovery tax credit

The IRS Large Business and International (LB&I) division publicly released a “practice unit”—part of a series of IRS examiner “job aides” and training materials intended to describe for IRS agents leading practices about tax concepts in general and specific types of transactions.


Related content

The title of this “concept unit” (as this practice unit is referred to by the IRS) is: Overview of the enhanced oil recovery tax credit

Read the practice unit on the IRS practice unit webpage (posting date of January 28, 2020).


Congress enacted section 43 in 1990 to provide an investment credit for certain costs a taxpayer pays or incurs for qualified enhanced oil recovery (EOR) projects. The amount of the credit is a maximum of 15% of the qualified expenditures the taxpayer makes, but can be less (as described in the practice unit). The enhanced oil recovery credit becomes part of the general business credit. The taxpayer claims the credit on Form 8830, Enhanced Oil Recovery Credit. Large corporations and partnerships usually claim the credit.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal