Okla. Admin. Code § 710:50-15-55

Current through Vol. 42, No. 1, September 16, 2024

Section 710:50-15-55 - Depletion

(a) The Oklahoma depletion deduction from income for oil and gas produced in Oklahoma is twenty-two percent (22%) of the gross income from the property, provided that for tax years beginning on or after January 1, 1997, and ending on or before December 31, 1999, and for tax years beginning on or after January 1, 2001, and ending on or before December 31, 2011, in the case of major oil companies, as defined by 52 O.S. § 288.2, the allowance may not exceed fifty percent (50%) of the net income from the property computed without the allowance for depletion. During years not specified herein, for all taxpayers, the allowance shall not exceed fifty percent (50%) of the net income from the property (computed without allowance for depletion). This allowance is allowable in the amount so computed minus the Federal depletion claimed. The applicable Federal schedule and a detailed depletion schedule must be enclosed.

(b) Lease bonus depletion of 22% is allowable; any such depletion claimed must be restored to income in the case of non-producing properties upon expiration of the lease. Individuals claiming lease bonus depletion may be required to furnish a copy of the lease and division order. [See: 68 O.S. § 2353(10) ]

Amended at 14 Ok Reg 2699, eff 6-26-97; Amended at 19 Ok Reg 2433, eff 6-27-02; Amended at 21 Ok Reg 2571, eff 6-25-04; Amended at 24 Ok Reg 2359, eff 6-25-07