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The Act repeals Section 50262 of the IRA, restoring royalty rates for oil and gas leases on federal land to 12.5%. The minimum rent rate is restored to $1.50 per acre and the minimum bid price is restored to $3 per acre. The Act also directs the Interior Secretary to immediately resume quarterly onshore oil-and-gas lease sales and requires at least four lease sales per year to be conducted in Alaska, Colorado, Montana, North Dakota, Nevada, New Mexico, Oklahoma and Wyoming.
The Act also permanently extends bonus depreciation and allows taxpayers to claim 100% bonus depreciation for qualified property acquired after January 19, 2025, as well as specified plants planted or grafted on or after that date. In addition, IRC Section 168(k)(10) is modified to give taxpayers the option to elect to claim 40% bonus depreciation (or 60% for longer production period property or certain aircraft) in lieu of 100% bonus depreciation for qualified property placed in service during the first tax year ending after January 19, 2025.