Energy Tax Reform Act of 1989

[AI summary unavailable — showing source text] Energy Tax Reform Act of 1989 - Repeals Internal Revenue Code provisions that identify intangible drilling costs as a tax preference item for purposes of determining alternative minimum tax liability. Increases from 15 percent to 27.5 percent the percentage depletion for oil and gas wells. Exempts oil and gas wells from application of the net income limitation on percentage depletion. Permits a percentage depletion income tax deduction for proven oil and gas wells that have been transferred to a new owner. Treats certain geological and geophysical costs and surface casing costs as intangible drilling and development costs that a taxpayer may elect to capitalize or to deduct for income tax purposes.…