WellWorks Rework Program
Deductible in the Year You Invest
Potential Tax Benefits
Oil and gas investments qualify for some of the most favorable incentives in the U.S. tax code. Depending on their circumstances, investors may benefit from drilling cost deductions, the depletion allowance and bonus depreciation. Subject to applicable tax law, the program offers a 100% deduction in the year invested.
Tax benefits are based on current interpretations of applicable tax laws and regulations, depend on individual circumstances, and may change. Consult your own legal, tax and financial advisors.
100% deduction in the year invested
Subject to applicable tax law, the program offers a 100% deduction in the year invested, which may significantly improve after-tax returns.
Drilling cost deductions
Qualifying development and rework costs may be deductible, depending on each investor’s circumstances.
Depletion allowance
A portion of production income may be sheltered through the depletion allowance as reserves are produced.
Bonus depreciation
Qualifying equipment may be eligible for bonus depreciation under current law.
Tax benefits are based on current interpretations of applicable tax laws and regulations, depend on individual circumstances, and may change. Consult your own legal, tax and financial advisors.
$100,000 Investment: Tax Example
How the deduction in the year invested applies to one unit. This example does not calculate or promise tax savings.
| Example Item | Amount / Treatment |
|---|---|
| Investment amount | $100,000 (one unit; half units available) |
| Potential deduction in the year invested | 100%, or $100,000, subject to applicable tax law |
| Applicable tax rate | Your individual marginal rate |
| Potential tax savings | Deduction × your marginal rate; confirm with your tax advisor |
Tax benefits are based on current interpretations of applicable tax laws and regulations, depend on individual circumstances, and may change. Consult your own legal, tax and financial advisors.
Ready to Build Generational Wealth With American Energy?
Contact your WellWorks representative to schedule a follow-up discussion, review the Private Placement Memorandum, partnership agreement and subscription documents, and speak with the Managing Partner and team of experts. Accredited investors only. No assurance of income or returns.