US energy companies are expected to benefit from a revision of the tax code, which was pushed through the Senate over the weekend.
The reform will include $1.4 trillion in tax cuts as well as a lower corporate rate, down from 35% to 20%, in a move that will mean a short term decrease in individual taxes and the reshaping of international business tax rules.
Large US energy companies, including Exxon Mobil Corp. and Chevron Corp. will expect to see considerable benefits from the legislation.
Furthermore, the bill will open the Arctic National Wildlife Refuge to oil drilling and reverse the mandate that individuals must buy health insurance, which will create a significant hole in the 2010 Affordable Care Act.
Stocks in Europe and the US futures rose as investors reacted to the effects of the bill, which still needs to be reconciled with an earlier version passed by the House of Representatives.
Lawmakers have expressed optimism over getting through the final stages as there are a large number of overlaps between the two bills.
Sen. Susan Collins said: “This bill will provide much-needed tax relief and simplification for lower- and middle-income families, while spurring the creation of good jobs and greater economic growth.”