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Oil & Gas

Research and Development Tax Incentives for the
Oil & Gas Industry

Companies operating in the oil and gas industry may not realize that many of their activities may entitle them to generous research and development (R&D) tax incentives. Oil and gas companies spend a considerable amount of time and effort developing more efficient and effective ways to explore for oil and gas, produce it, transport it, and refine it. They also invest in the development of cleaner or more efficient fuels and hundreds of other activities. This applies to the thousands of smaller companies that provide services and materials to the oil & gas industry, as well as the big oil companies. Many of these activities may not occur in traditional laboratories or settings usually thought of as “research.” However, these activities require time and money that may be captured as qualified research expenditures leading to significant tax benefits. If you think you have to be a large, public corporation developing new products and inventions to be conducting qualified activities as defined by the Internal Revenue Code, think again.

Examples of Oil & Gas Innovations Eligible for R&D Tax Incentives Include the Following:

  • Designing offshore structure design with respect to:
    • Generator and compressor modules
    • Process modules
    • Quarters
    • Equipment skids
    • Jackets
    • Helidecks
  • Developing and testing of plug and abandonment solutions
  • Developing and testing of turnaround and shutdown services
  • Creating plant design with respect to:
    • Pressurization
    • Safety
    • Chemical segregation
    • Environmental and pollution control systems
  • Developing wastewater treatment solutions
  • Refining issues
  • Designing or improving drills
  • Developing containment systems
  • Testing fuel combustion
  • Conducting environmental testing and remediation

alliantgroup’s Oil & Gas Industry Specialization Team

In order to better serve the energy industry, alliantgroup has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the diverse areas that make up the energy industry, including oil and gas. alliantgroup’s Energy Specialization Team employs individuals who have educational backgrounds and practical experience within the energy industry.

ManufacturingManufacturing R&D Tax Credit Whitepaper

Download our free Manufacturing R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.

Download alliantgroup's Manufacturing R&D Whitepaper
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