This bill proposes amendments to the Internal Revenue Code to modify percentage depletion rules for oil and gas wells, primarily benefiting marginal properties. It revises the calculation of the applicable percentage depletion rate , 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 by a Producer Price Index (PPI) for drilling oil and gas wells, beginning after 2027. A key provision of the bill is the nonapplication of the taxable income limitation for percentage depletion on marginal properties, removing existing restrictions on the amount of depletion that can be claimed. Furthermore, the legislation doubles the depletable oil quantity for independent producers and royalty owners, increasing it from 1,000 barrels to 2,000 barrels of average daily production. These changes, effective for taxable years beginning after December 31, 2026, aim to provide significant tax incentives for oil and gas production.