Bill Text: NJ SCR131 | 2026-2027 | Regular Session | Introduced
Bill Title: Memorializes President and United States Congress to enact legislation that would eliminate preferential federal tax treatment for oil and natural gas companies.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-04 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [SCR131 Detail]
Download: New_Jersey-2026-SCR131-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Memorializes President and United States Congress to enact legislation that would eliminate preferential federal tax treatment for oil and natural gas companies.
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution memorializing the President and Congress to enact legislation that would eliminate preferential federal tax treatment for oil and natural gas companies
Whereas, According to the federal Energy Information Administration, the average price of unleaded regular gasoline in the nation was $3.50 per gallon, as of March 9, 2026, representing an increase of $0.43 or 14.1 percent from the previous year; and
Whereas, ExxonMobil Corporation, Chevron Corporation, TotalEnergies SE, BP plc, and Shell Oil Corporation, which represent five of the world's largest publicly traded oil companies, reported combined $82.1 billion in profits in 2025; and
Whereas, The "One Big Beautiful Bill Act," Pub.L.119-21, included expanded federal tax benefits for oil and natural gas companies, such as intangible drilling cost deductions, reduced royalty rates for offshore and onshore drilling, and expanded carbon capture and storage tax credits; and
Whereas, According to recent analysis, federal tax benefits and subsidies each year for oil and natural gas companies range anywhere from $15 billion according to the International Institute for Sustainable Development to over $30 billion according to Oil Change International; and
Whereas, At a time of significant federal budget deficits and growing national debt, it is fiscally imprudent to maintain preferential tax expenditures that reduce federal revenues without clear public benefit; and
Whereas, According to a report by the Financial Accountability & Corporate Transparency Coalition, U.S. oil and gas companies pay five times more income tax to foreign governments than to the US federal government; and
Whereas, There is limited evidence that federal tax benefits provided to oil and natural gas companies result in lower fuel prices for consumers or increased domestic energy affordability; and
Whereas, Preferential tax treatment for oil and natural gas companies distorts energy markets by favoring mature fossil fuel industries over emerging and renewable energy sources, thereby undermining fair competition and long-term economic innovation; and
Whereas, Residents of New Jersey continue to face high energy and transportation costs, and federal subsidies to profitable oil and natural gas companies do not guarantee lower prices for consumers; and
Whereas, Eliminating preferential tax treatment for highly profitable industries would promote a more equitable tax code and help ensure that all sectors contribute fairly to federal revenues; and
Whereas, The nation can no longer justify providing tax credits and deductions to companies that are experiencing substantial profits while many Americans are struggling to keep up with rising costs of living; and
Whereas, It is altogether fitting and proper and in the best interest of the citizens of New Jersey and the citizens of this great nation to memorialize the President and Congress to enact legislation eliminating the preferential federal tax treatment for oil and natural gas companies; now, therefore,
Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):
1. The President and Congress are respectfully memorialized to enact legislation eliminating the preferential federal tax treatment for oil and natural gas companies.
2. Duly authenticated copies of this resolution, signed by the President of the Senate and the Speaker of the General Assembly and attested by the Secretary of the Senate and the Clerk of the General Assembly, shall be transmitted to the President of the United States, the President of the United States Senate, the Senate Majority Leader, the Speaker of the United States House of Representatives, and each member of Congress from the State of New Jersey.
STATEMENT
This concurrent resolution memorializes the President of the United States and the United States Congress to enact legislation eliminating the preferential federal tax treatment for oil and natural gas companies.
Under current law, oil and natural gas companies receive federal tax benefits and subsidies estimated between $15 and $30 billion despite earning billions in profit each year. Moreover, the "One Big Beautiful Bill Act" expanded upon existing tax incentives that benefit the oil and natural gas industry, including intangible drilling cost deductions, reduced royalty rates for offshore and onshore drilling, and expanded carbon capture and storage tax credits.
There is limited evidence that federal tax benefits provided to oil and natural gas companies result in lower fuel prices for consumers or increased domestic energy affordability. Preferential tax treatment for oil and natural gas companies also distorts energy markets by favoring mature fossil fuel industries over emerging and renewable energy sources, thereby undermining fair competition and long-term economic innovation. The nation can no longer justify providing tax subsidies to companies that are experiencing substantial profits while many Americans are struggling to keep up with rising costs of living.
