Crude Oil and Natural Gas Credit Processing

To ensure crude oil and natural gas taxpayers can access qualified credits as quickly as possible, the Comptroller's office will refund credits generated after Jan. 1, 2014, upon verification.

For qualified credits existing before Jan. 1, 2014, taxpayers can:

  • receive a refund for existing credits along with credit interest (if applicable); or
  • have the credits remain on file to satisfy liabilities after the liabilities are reported. Retained credits will be transferred to a subsequent report period in which the postmark date of the original credit will remain intact.

Credits not created by an amended report become out-of-statute and unavailable to a taxpayer if these credits are not sought through a written request. Written refund requests, credit transfers and amendments postmarked within four years of a report period's due date toll (begin) the four-year statute of limitations until the Comptroller's office completes a review of the request and issues a decision.

Taxpayers have 20 days from the date a credit is disallowed to challenge the Comptroller's decision by filing a hearing request.

The Comptroller's office will transfer existing credits to satisfy outstanding liabilities before issuing a refund.

Due Dates

  • Monthly natural gas tax reports and payments are due the 20th day of the second month following the production.
  • Annual natural gas tax reports and payments are due February 20th of the preceding year.
  • Crude oil tax reports and payments are due the 25th day of the month following the production month.

If you have questions regarding this process, contact our Crude Oil and Natural Gas Tax staff at 800-531-5441, ext. 3-4455 or 512-463-4455.