Derivative$: An accounting challenge and consulting opportunity
Accounting and Finance
Section 29, which provided an incentive to drill for fuel from nonconventional sources, in essence expired at the end of 1992. Since that time, there has been a precipitous decline in such drilling. Evidence exists to show that, during the 13-year period corporate oil and gas producers claimed the Section 29 income tax credit, both production and reserves of nonconventional fuel increased in the US. Congress may reopen the window of opportunity. However, not all people feel that government intervention in the energy industry is still needed. Many industry producers even lobbied against the extension of Section 29 in the Energy Act of 1992. Proponents of smaller government have objected to the use of the IRC as a means to advance economic and social policies.
Kiss, R. M., & McCombs, G. B. (1996). Derivative$: An accounting challenge and consulting opportunity. Today’s CPA, 22(1).