In this episode of An Ounce of Prevention, host Rachel Reece is joined by Maggie Caldwell, Managing Director in the Opportunities Tax Advisory Practice, to discuss an often-overlooked benefit in the energy industry: the Marginal Well Tax Credit. Together, they break down how this unique credit works, who qualifies, and how businesses can claim significant savings—even retroactively.

Before the interview, Rachel shares a case law update about Moloa‘a Farms, LLC v. Green Energy Team, LLC, a Hawaii Supreme Court case that highlights the importance of defining key terms in real estate and lease agreements.

Whether you’re in energy, real estate, or business operations, this episode offers actionable insights on how proactive legal and financial strategies can protect your bottom line—and maybe even put money back in your pocket.

Timestamps & Highlights

00:00 – 00:20 | Introduction
Rachel welcomes listeners to An Ounce of Prevention—a podcast where legal insights meet practical business advice.

00:20 – 00:42 | What to Expect
An overview of the show’s mission: helping executives build stronger businesses and sleep better at night.

00:42 – 00:47 | Case Law Segment Intro
Rachel introduces the latest legal update and its implications for business owners.

00:47 – 04:42 | Case Law Update: Moloa‘a Farms, LLC v. Green Energy Team, LLC
A breakdown of the Hawaii Supreme Court’s decision on whether a lease option was enforceable.

• Why missing “essential terms” can invalidate agreements.
• Lessons on intent, timing, and price provisions.
• Key takeaway: without clear terms, contracts may not hold up in court.

04:42 – 04:50 | Introducing Guest Expert
Rachel welcomes Maggie Caldwell, Managing Director and federal tax expert specializing in energy clients.

04:50 – 05:27 | Meet Maggie Caldwell
Overview of Maggie’s experience with mergers, IPOs, and tax strategy for the energy sector.

05:27 – 06:02 | What Is the Marginal Well Tax Credit?
Maggie explains this often-missed credit for low-producing (marginal) oil and gas wells.

06:02 – 06:28 | The 2024 and 2025 Tax Years
Why 2024 and 2025 are key years when the credit phases in—and what taxpayers need to know.

06:28 – 07:04 | How the Credit Phases In
How the IRS determines eligibility based on low pricing environments and gas/oil price thresholds.

07:04 – 07:29 | Who Qualifies?
Only working interest owners—not royalty owners—can claim the credit, whether operating or non-operating.

07:29 – 08:31 | Filing and Claiming the Credit
How individuals and partnerships can claim the credit on their federal income tax returns.

08:31 – 09:28 | Why This Credit Is Often Missed
Up to 70–80% of eligible taxpayers are unaware of this opportunity—here’s why.

09:28 – 10:15 | Real-World Example
A recent client reclaimed $4.5 million in tax credits through amending past returns.

10:15 – 10:57 | Lease Aggregation Rule
How wells that don’t individually qualify can still be eligible through lease aggregation.

10:57 – 11:25 | How to Amend and Claim
What data is needed (API numbers and working interest percentages) and how the amendment process works.

11:25 – 11:56 | Low-Maintenance, High-Impact Credit
Why the process is simple and worthwhile for qualifying operators and investors.

11:56 – 12:05 | Contact & Closing Remarks
How listeners can reach out with questions or to be featured on the show.

12:05 – 12:46 | Legal Disclaimer
Standard disclosure: this podcast is for informational purposes only and not legal advice.

12:46 – 13:01 | Outro
Rachel wraps up with contact info and encourages listeners to subscribe, rate, and follow An Ounce of Prevention on major platforms.