Yes, there are two important tax benefits only found in oil & gas.
1. Intangible Drilling Cost (IDC) Deduction:
−IRS Section 263 (c) allows for 100% of the tangible drilling costs to directly offset taxable income in the year of investment. IDC’s typically range from 75% to 85% of the total cost of a well.
2. Small Producers Tax Exemption:
−IRS Section 613 covers the tax exemption for small producers and investors which allows 15% of all gross income received from oil and gas wells to be excluded from taxation, this is also known as Depletion Allowance.