This bill proposes significant changes to the Internal Revenue Code's percentage depletion rules for oil and gas wells, primarily benefiting producers of marginal properties . It modifies the calculation of the applicable percentage for these properties, setting it at 15% plus an additional percentage point for every dollar the crude oil reference price falls below $70, up to a maximum of 25%. This $70 threshold will also be adjusted annually for inflation using the Producer Price Index for Drilling Oil and Gas Wells starting in 2027. Furthermore, the legislation removes the existing taxable income limitation for percentage depletion allowances specifically for marginal oil and gas production, allowing producers to claim the full allowance without being capped by their income. It also increases the depletable oil quantity from 1,000 barrels to 2,000 barrels, expanding the amount of average daily production eligible for percentage depletion. These amendments are slated to take effect for taxable years beginning after December 31, 2026.