DVN · 10-Q · 2026Q3 · Full report

U.S. Tax Law Changes

DEVON ENERGY CORP/DE · 2026-11-06 · Importance 40 · Surprise 42

The One Big Beautiful Bill Act (OBBB), signed July 4, 2025, permanently reinstated 100% bonus depreciation and allowed expensing of domestic research costs beginning in 2025. It also allows intangible drilling costs to be deducted in the computation of the corporate alternative minimum tax (CAMT) beginning in 2026. The IRS issued additional interim CAMT guidance in Notice 2026-7 on February 18, 2026, including a domestic-research-cost amortization adjustment beginning in 2025 that Devon recorded in the first quarter of 2026; Devon said it continues to monitor for further guidance.

Key facts

• The July 4, 2025 OBBB law permanently reinstated 100% bonus depreciation and allowed expensing of domestic research costs beginning in 2025, and allowed intangible drilling cost deductions in CAMT computations beginning in 2026. source
• On February 18, 2026, the IRS issued interim CAMT guidance through Notice 2026-7, including a new 2025 AFSI adjustment for amortization of domestic research costs; Devon recorded the impact in Q1 2026. source