Memorializes President and United States Congress to enact legislation that would eliminate preferential federal tax treatment for oil and natural gas companies.

SCR131

SENATE CONCURRENT RESOLUTION No. 131

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

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.