Promoting Domestic Energy Production Act

This bill proposes amendments to the Internal Revenue Code of 1986, specifically concerning the calculation of adjusted financial statement income. Its core objective is to permit intangible drilling and development costs (IDCs) to be factored into this calculation, which is relevant for certain corporate tax provisions.

The legislation modifies Section 56A(c)(13) to ensure that adjusted financial statement income is reduced by depreciation deductions and IDC deductions, mirroring the amounts allowed in computing taxable income. Additionally, it mandates disregarding certain depreciation and depletion expenses related to such property and IDCs that are typically reported on a taxpayer's financial statement. These provisions are set to apply to taxable years beginning after December 31, 2025, potentially impacting the tax obligations of companies engaged in energy production.