End Oil and Gas Subsidies in California!
Governor Newsom and legislators can do more to protect clean air by ending billion-dollar tax breaks for the oil industry.
Fire at the Chevron Richmond Refinery. Photo by Greg Kunit.
With a huge deficit putting critical climate and clean air programs at risk, ending fossil fuel subsidies ensures California invests in people — not oil and gas industry profits.
California’s budget proposal must eliminate all subsidies for the oil and gas industry, including the Water’s Edge Election and Research and Development credits.
Eliminating these subsidies and tax breaks could free up billions of dollars to invest in life-saving clean air and climate programs.
Over 70 organizations are calling on Governor Newsom and legislators to end oil and gas subsidies now.
What Is the Water’s Edge Election?
Water’s Edge Election is a tax utilized in most states that allows businesses to exclude income and factors of non-U.S. affiliates when calculating their income in California. The Department of Finance estimates the total Water’s Edge exemption for 2023-24 results in $4.8 billion in state General Fund losses for all corporations.
In 2015, a U.S. Senate investigation found that Chevron hides $31 billion in profit within companies based in 13 different offshore tax havens.
Learn more about the Water’s Edge Election and how Chevron benefits here.