Another State Gives Oil Companies a Big Tax Break

Before you go, we thought you'd like these...
Before you go close icon

Following in the footsteps of the state of Alaska, and the big tax break it gave oil companies, the state of Mississippi is hoping that it, too, can spur more oil and gas development in the state through some tax incentives. The move will reduce severance taxes on oil from 6%, down to 1.8%, starting in July, and will expire in the middle of 2018. The state has also greatly reduced the taxes on electricity used for CO2 extraction. 

The move to reduce severance taxes might not have that big of an impact as hoped, because the oil and gas reserves in the state are rather modest in comparison to its western neighbor, Louisiana. The big winner from this move, though, is Denbury Resources . With large CO2 extraction operations used to serve Mississippi and neighboring states, a large break on electricity taxes will give the company a decent cut to expenses.

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report, "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.


 

The article Another State Gives Oil Companies a Big Tax Break originally appeared on Fool.com.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool owns shares of Denbury Resources and Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners