API Supports Bicameral Legislation to Advance Pro-Growth Tax Policies

WASHINGTON, January 22, 2025 — The American Petroleum Institute (API) today voiced strong support for the ALIGN Act, introduced by Senator James Lankford (R-OK) and House Budget Committee Chairman Jodey Arrington (R-TX). This legislation aims to encourage investment, keep American business competitive on the global stage, and renew key tax provisions from the Tax Cuts and Jobs Act (TCJA) of 2017, set to expire later this year.

"Smart tax policies that foster investment in American-made oil and natural gas are critical for meeting growing demand for affordable, reliable and secure energy," API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer said. “By making full expensing permanent, the ALIGN Act will further incentivize American energy production, support U.S. jobs and accelerate infrastructure projects. We applaud Sen. Lankford and Chairman Arrington for their efforts in support of a competitive tax code, and we look forward to working with them and other congressional leaders to pass this legislation into law."

The ALIGN Act would restore 100% “full expensing” for businesses, including the bonus depreciation provision – a key driver of economic activity. Bonus depreciation enables companies to immediately deduct the cost of qualifying capital investments, such as drilling equipment, pipeline materials and facility upgrades, rather than spreading those deductions over several years. This upfront incentive provides businesses with the capital needed to invest in infrastructure, technology and jobs.

According to a new study commissioned by API and prepared by Rystad Energy, extending bonus depreciation could support the development of hundreds to thousands of miles of new pipelines and generate over $1 billion in cash flow for further investment in infrastructure projects.

Advancing sensible tax policies like the ALIGN Act are a central pillar of API’s Five Point Policy Roadmap to secure American energy leadership and help reduce inflation.

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

###