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Tax Relief for American Families and Workers Act Supports Key Investments in Energy Jobs, Production, and Security

February 2, 2024 — Press Releases   

Washington, D.C. – American consumers and workers will see a major boost to energy jobs, production, and investment thanks to the pro-growth policies in the Tax Relief for American Families and Workers Act.

Restoring key provisions of the 2017 Republican tax cuts, such as research and development (R&D) expensing, interest deductibility, and 100 percent immediate expensing, allows capital intensive industries, such as U.S. oil and natural gas, to refine and transport at a faster pace, and increase investments that currently support nearly millions of jobs in communities across the country. Additionally, it will strengthen America’s energy security by allowing domestic energy producers to compete globally with countries such as Russia and China.

“The inflation crisis we’ve seen unfold over the last three years has made it harder for working families to put food on their tables, clothes on their backs, and gas in their cars. The pro-growth, pro-workers policies in the Tax Relief for American Families and Workers Act build on the successful track record of the 2017 Republican tax law that will lower prices at the pump and fuel American energy production, job growth, and investment in local communities. By promoting energy independence we are reducing America’s reliance on foreign sources of energy, and ensuring that American workers and businesses can compete and win against China and Russia,” said Ways and Means Committee Chairman Jason Smith (MO-08) .

H.R. 7024, the Tax Relief for American Families and Workers Act, has been endorsed by the American Petroleum Institute (API) that represents all segments of American gas and oil, which supports more than 11 million U.S. jobs, as a critical step to growing domestic energy production and keeping America’s energy sector competitive with the rest of the world:

Full expensing and a more globally competitive deduction for interest expense are absolutely critical for U.S. natural gas and oil companies to produce, move and refine the majority of America’s energy. Indeed, U.S. oil and natural gas companies are among the largest users of full expensing. This bill is critical to their continued success providing affordable and reliable energy to American families and supporting millions of workers. Among natural gas and oil jobs, the average wage is 65% greater than the U.S. average.

American Petroleum Institute

Key Facts:

  • Two million direct jobs and 21 million indirect jobs are supported by R&D expensing. Extending this provision will generate $70 billion in new domestic R&D investments, including in new oil and gas exploration technologies that allow the U.S. to be more competitive on the world stage.
  • Extended interest deductibility will generate another 867,000 new jobs and increase take-home pay for American workers by $58 billion.
  • After the 2017 Trump tax cuts enacted 100 percent immediate expensing for equipment and machinery, U.S. investment grew over 20 percent. 
  • In the year following the 2017 Trump tax cuts, gas prices hit $2.74 per gallon, a decrease of 4 percent compared to the prior year.