The Wall Street Journal reports that oil and gas companies spend billions of dollars each year to drill new wells, but a tax code allows them to defer federal income taxes.

As much as $15.6 billion from 20 oil and gas companies has been deferred in taxes since 2009. The companies have to pay back the taxes, but while they’re not paying the taxes, they can use the money on new wells. This strategy has helped lower energy costs and allow the U.S. to become more energy independent, among other benefits.

From The Wall Street Journal:

“Energy industry officials say that the trend of companies deferring tax payments is good for the economy, as higher corporate spending creates jobs and other tax revenue.”

Via: The Wall Street Journal > U.S. energy firms rewarded with tax deferrals