Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Tax Credit for Qualifying Low-Producing Oil Leases

Taxpayers whose oil leases qualify as low-producing are entitled to a tax credit. The amount of the credit is based on the average taxable price of oil, adjusted to 2005 dollars, during the previous three months as certified by the comptroller and published in the Texas Register.

Qualifying Leases

Texas Tax Code Section 202.058(a)(2) defines a “qualifying low-producing oil lease” as a well classified as an oil well that is part of a lease whose production during a 90-day period is less than:

(A) 15 barrels of oil per day of production; or

(B) five percent recoverable oil per barrel of produced water.

Taxpayers must file form AP-216 (PDF, 73k) for oil leases meeting the production requirements indicated above. The production per day is determined by using the monthly lease production report filed with the Texas Railroad Commission for three consecutive months and dividing the monthly lease production by the number of well days within the three-month time frame. (A well day is one well producing for one day.)

This tax credit does not apply to casinghead gas produced from an oil well.

Filing Instructions and Examples for Qualifying Low-Producing Leases

Price Conditions

Oil from qualified leases becomes eligible for different levels of credit from crude oil severance tax based upon the Comptroller-certified average price for the reporting month.

Average Taxable Oil Price Exemption
More Than $30 No Exemption
Over $25 to $30 25 Percent Credit
Over $22 to $25 50 Percent Credit
$22 or Less 100 Percent Credit

The Comptroller-certified average price of oil to be used in these calculations will be posted in the Texas Register and on this Web site. When the average price falls within one of the categories listed above, oil will be allowed the corresponding level of exemption for that reporting month.

Low Producing Well Exemption


2016

Report Period Price of Oil Eligibility
July 2016 $32.24/bbl Not Eligible for Exemption
June 2016 $29.52/bbl Eligible for 25% Credit
May 2016 $25.90/bbl Eligible for 25% Credit
April 2016 $24.13/bbl Eligible for 50% Credit
March 2016 $24.76/bbl Eligible for 50% Credit
February 2016 $28.48/bbl Eligible for 25% Credit
January 2016 $32.53/bbl Not Eligible for Exemption

2015

Report Period Price of Oil Eligibility
December 2015 $34.67/bbl Not Eligible for Exemption
November 2015 $34.62 /bbl Not Eligible for Exemption
October 2015 $35.63/bbl Not Eligible for Exemption
September 2015 $38.95/bbl Not Eligible for Exemption
August 2015 $42.56/bbl Not Eligible for Exemption
July 2015 $43.02/bbl Not Eligible for Exemption
June 2015 $39.88/bbl Not Eligible for Exemption
May 2015 $37.91/bbl Not Eligible for Exemption
April 2015 $36.40/bbl Not Eligible for Exemption
March 2015 $39.32/bbl Not Eligible for Exemption
February 2015 $45.47/bbl Not Eligible for Exemption
January 2015 $54.41/bbl Not Eligible for Exemption

2014

Report Period Price of Oil Eligibility
December 2014 $62.52/bbl Not Eligible for Exemption
November 2014 $67.38/bbl Not Eligible for Exemption
October 2014 $71.75/bbl Not Eligible for Exemption
September 2014 $74.70/bbl Not Eligible for Exemption
August 2014 $76.10/bbl Not Eligible for Exemption
July 2014 $76.14/bbl Not Eligible for Exemption
June 2014 $75.21/bbl Not Eligible for Exemption
May 2014 $75.26/bbl Not Eligible for Exemption
April 2014 $73.81/bbl Not Eligible for Exemption
March 2014 $73.50/bbl Not Eligible for Exemption
February 2014 $71.98/bbl Not Eligible for Exemption
January 2014 $73.45/bbl Not Eligible for Exemption

2013

Report Period Price of Oil Eligibility
December 2013 $75.50/bbl Not Eligible for Exemption
November 2013 $78.57/bbl Not Eligible for Exemption
October 2013 $79.61/bbl Not Eligible for Exemption
September 2013 $76.99/bbl Not Eligible for Exemption
August 2013 $74.14/bbl Not Eligible for Exemption
July 2013 $71.08/bbl Not Eligible for Exemption
June 2013 $70.44/bbl Not Eligible for Exemption
May 2013 $70.65/bbl Not Eligible for Exemption
April 2013 $71.58/bbl Not Eligible for Exemption
March 2013 $70.70/bbl Not Eligible for Exemption
February 2013 $68.72/bbl Not Eligible for Exemption
January 2013 $67.22/bbl Not Eligible for Exemption

2012

Report Period Price of Oil Eligibility
December 2012 $68.70/bbl Not Eligible for Exemption
November 2012 $70.58/bbl Not Eligible for Exemption
October 2012 $70.38/bbl Not Eligible for Exemption
September 2012 $67.47/bbl Not Eligible for Exemption
August 2012 $67.68/bbl Not Eligible for Exemption
July 2012 $71.51/bbl Not Eligible for Exemption
June 2012 $77.59/bbl Not Eligible for Exemption
May 2012 $80.12/bbl Not Eligible for Exemption
April 2012 $79.65/bbl Not Eligible for Exemption
March 2012 $78.12/bbl Not Eligible for Exemption
February 2012 $76.69/bbl Not Eligible for Exemption
January 2012 $73.12/bbl Not Eligible for Exemption

2011

Report Period Price of Oil Eligibility
December 2011 $69.63/bbl Not Eligible for Exemption
November 2011 $66.80/bbl Not Eligible for Exemption
October 2011 $69.68/bbl Not Eligible for Exemption
September 2011 $72.57/bbl Not Eligible for Exemption
August 2011 $76.52/bbl Not Eligible for Exemption
July 2011 $79.94/bbl Not Eligible for Exemption
June 2011 $81.96/bbl Not Eligible for Exemption
May 2011 $79.43/bbl Not Eligible for Exemption
April 2011 $74.60/bbl Not Eligible for Exemption
March 2011 $71.44/bbl Not Eligible for Exemption
February 2011     $70.26/bbl Not Eligible for Exemption
January 2011 $68.39/bbl Not Eligible for Exemption

2010

Report Period Price of Oil Eligibility
December 2010 $64.80/bbl Not Eligible for Exemption
November 2010 $62.80/bbl Not Eligible for Exemption
October 2010 $61.37/bbl Not Eligible for Exemption
September 2010 $61.37/bbl Not Eligible for Exemption
August 2010 $60.70/bbl Not Eligible for Exemption
July 2010 $62.90/bbl Not Eligible for Exemption
June 2010 $64.52/bbl Not Eligible for Exemption
May 2010 $65.28/bbl Not Eligible for Exemption
April 2010 $63.75/bbl Not Eligible for Exemption
March 2010 $62.10/bbl Not Eligible for Exemption
February 2010 $62.60/bbl Not Eligible for Exemption
January 2010 $61.96/bbl Not Eligible for Exemption

2009

Report Period Price of Oil Eligibility
December 2009 $60.56/bbl Not Eligible for Exemption
November 2009 $58.71/bbl Not Eligible for Exemption
October 2009 $55.65/bbl Not Eligible for Exemption
September 2009 $55.74/bbl Not Eligible for Exemption
August 2009 $52.65/bbl Not Eligible for Exemption
July 2009 $48.88/bbl Not Eligible for Exemption
June 2009 $43.18/bbl Not Eligible for Exemption
May 2009 $37.81/bbl Not Eligible for Exemption
April 2009 $35.72/bbl Not Eligible for Exemption
March 2009 $34.19/bbl Not Eligible for Exemption
February 2009 $39.19/bbl Not Eligible for Exemption
January 2009 $48.32/bbl Not Eligible for Exemption

2008

Report Period Price of Oil Eligibility
December 2008 $64.39/bbl Not Eligible for Exemption
November 2008 $82.35/bbl Not Eligible for Exemption
October 2008 $100.28/bbl Not Eligible for Exemption
September 2008 $111.28/bbl Not Eligible for Exemption
August 2008 $113.70/bbl Not Eligible for Exemption
July 2008 $108.02/bbl Not Eligible for Exemption
June 2008 $100.25/bbl Not Eligible for Exemption
May 2008 $92.39/bbl Not Eligible for Exemption
April 2008 $87.21/bbl Not Eligible for Exemption
March 2008 $83.52/bbl Not Eligible for Exemption
February 2008 $83.55/bbl Not Eligible for Exemption
January 2008 $81.51/bbl Not Eligible for Exemption

2007

Report Period Price of Oil Eligibility
December 2007 $77.83/bbl Not Eligible for Exemption
November 2007 $71.14/bbl Not Eligible for Exemption
October 2007 $67.36/bbl Not Eligible for Exemption
September 2007 $63.03/bbl Not Eligible for Exemption
August 2007 $58.18/bbl Not Eligible for Exemption
July 2007 $58.35/bbl Not Eligible for Exemption
June 2007 $55.85/bbl Not Eligible for Exemption
May 2007 $57.95/bbl Not Eligible for Exemption
April 2007 $56.67/bbl Not Eligible for Exemption
March 2007 $53.48/bbl Not Eligible for Exemption
February 2007 $53.51/bbl Not Eligible for Exemption
January 2007 $53.12/bbl Not Eligible for Exemption

2006

Report Period Price of Oil Eligibility
December 2006 $55.01/bbl Not Eligible for Exemption
November 2006 $56.15/bbl Not Eligible for Exemption
October 2006 $60.72/bbl Not Eligible for Exemption
September 2006 $67.30/bbl Not Eligible for Exemption
August 2006 $66.61/bbl Not Eligible for Exemption
July 2006 $64.94/bbl Not Eligible for Exemption
June 2006 $61.74/bbl Not Eligible for Exemption
May 2006 $59.19/bbl Not Eligible for Exemption
April 2006 $58.42/bbl Not Eligible for Exemption
March 2006 $57.83/bbl Not Eligible for Exemption
February 2006 $56.80/bbl Not Eligible for Exemption
January 2006 $55.47/bbl Not Eligible for Exemption

2005

Report Period Price of Oil Eligibility
December 2005 $57.44/bbl Not Eligible for Exemption
November 2005 $59.71/bbl Not Eligible for Exemption
October 2005 $58.80/bbl Not Eligible for Exemption
September 2005 $55.34/bbl Not Eligible for Exemption

Also view Natural Gas Low Producing Well Exemptions

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