S. 224 — Promoting Domestic Energy Production Act

This section revises the adjustments for intangible drilling and development costs (IDCs)—expenses incurred by oil and gas producers that may be immediately deducted under IRC §263(c)—in computing adjusted financial statement income (AFSI) for the corporate alternative minimum tax (CAMT). Specifically, it (1) requires AFSI to be reduced by deductions allowed for taxable income purposes for depreciation under IRC §§167 and 168 (for depreciable property) and for IDCs under §263(c); and (2) disregards applicable financial statement depreciation and depletion expenses for such property. The changes apply to taxable years beginning after December 31, 2025.