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R&D Tax Credits for Oil & Gas Industry

What is the R&D Tax Credit for Oil & Gas Industry?

The R&D tax credit for the Oil & Gas Industry benefits companies involved in exploration and production. It encompasses innovative activities such as geological exploration, drilling advancements, enhanced oil recovery, safety measures, and technology development. This tax credit directly reduces your federal tax liability dollar-for-dollar and allows businesses an immediate source of liquid assets to get projects off to an immediate start. Businesses are also able to claim the R&D tax credits retroactively for up to 3 or 4 years for work that has already been completed.


Many Oil & Gas businesses may be eligible for the R&D tax credits and not even realize it.  Does your Oil & Gas business qualify for the R&D tax credit?  The IRS has 4 guidelines in place to help businesses understand if they may qualify:

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1.  Does your business develop or improve upon products, businesses, or services?

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2.  Does your business systematically evaluate one or more alternatives during the process of experimentation?

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3.  Does your business attempt to solve a technical uncertainty?


4.  Does your business fundamentally rely upon established principles of science?

If you answered yes to these 4 questions, your Oil & Gas business may be eligible to claim these beneficial R&D tax credits.  Proveres is here to help you figure out the details.

What can the R&D Tax Credits do for Oil & Gas businesses?


  • Reduce your payroll taxes

  • Use as non-dilutive funding

  • Carry your credit forward



How It Works


Proveres will work closely with your business to gain maximum tax credits each year by following these 5 steps:

Identify & Discover

Proveres provides a full analysis of your business and operations, and will help identify which projects and work your business does that can be claimed towards the R&D tax credit.


Proveres reviews expense-related data from your business and identifies what will qualify for the R&D tax credit.


Proveres gathers relevant information and documentation into the qualifications for each R&D tax credit claim.

Validate & Support

When the credits to be claimed have been calculated and validated, Proveres assists your business to facilitate a smooth tax filing process.

Annual Reviews to Maximize Credits

In addition to discovering existing R&D tax credits your Oil & Gas business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.

Some examples include, but are not limited to Research, Development, Design, Experimentation, or Testing of any of the following:

  • Enhancing Methods of Recovery: Researching ways to improve recovery, including innovative enhanced oil recovery (EOR) techniques or experimenting with nanotechnology in the recovery process.

  • Creating Environmentally Sustainable Technologies: Innovating to reduce the environmental impact of operations, such as developing carbon capture and storage methods or optimizing water utilization during hydraulic fracturing.

  • Advancing Safety Protocols: Focusing on improving safety measures and creating more reliable safety equipment through research and development.

  • Designing Superior Exploration Technologies: Working on the creation or enhancement of seismic imaging techniques and other exploration technologies to advance oil and gas discovery.

  • Geological and Geophysical Exploration: Conducting research related to identifying and evaluating oil and gas reserves, involving activities like seismic surveys and geological modeling.

  • Well Drilling and Completion: Developing innovative techniques and technologies for drilling, wellbore construction, and well completion.

  • Enhanced Oil Recovery (EOR): Engaging in the development and testing of novel methods to boost the recovery of oil and gas from existing reservoirs.

  • Equipment and Tool Development: Designing and developing specialized equipment and tools for oil and gas extraction, monitoring, or processing.

  • Software and Data Analysis: Creating proprietary software and data analysis tools for tasks such as reservoir modeling, drilling optimization, and production monitoring.

  • Process Optimization: Continuously improving operational processes, encompassing enhancements in refining and transportation methods.

  • Testing and Analysis: Evaluating new materials, fluids, or technologies for their suitability in oil and gas operations.


Additionally, if you have employees or 3rd-party contractors with the following job titles, you may qualify for R&D tax credits:

  • Petroleum Engineers

  • Geologists

  • Drilling Engineers

  • Reservoir Engineers

  • Environmental Engineers

  • Chemical Engineers

  • Data Analysts

  • Research Scientists


To learn more about the R&D Tax Credit for Oil & Gas industry, and whether your business qualifies, please contact us

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