THE OPTION TO EXPENSE INTANGIBLE DRIILLING COST (lDC) IS EXPLAINED
This century-old tax provision is the labor and supplies incidentals that are
necessary for the drilling and preparation of the well for production of oil and
natural gas. This tax provision is critical in helping capital-intensive industries like Oil and Natural Gas to raise money necessary to keep drilling.
IDCs are approximately 80% of the total cost of the investment.
