The piece examines how Liberty Energy, now one of North America’s largest fracking service companies, used federal tax provisions and depreciation benefits to reduce its US corporate income tax liability to less than zero at the same time its founder moved into a powerful role shaping national energy policy. It focuses on Liberty’s 2025 financial filings, the Institute on Taxation and Economic Policy’s analysis of 88 profitable corporations that paid no federal corporate income tax, and the broader debate over whether these incentives are smart investment tools or corporate giveaways that undermine public trust.

Key Takeaways:

1. Liberty recorded about $193 million in pre‑tax income in 2025 but, after applying deductions and other tax benefits, ended up receiving roughly $10 million back from the federal government instead of paying U.S. corporate income tax.

2. The company’s low U.S. tax bill appears to be driven largely by accelerated depreciation and other provisions that let capital‑intensive firms write off investments quickly—breaks that critics say overwhelmingly benefit fossil‑fuel and other large corporations.

3. The arrangement is drawing scrutiny because Liberty was founded and long led by Chris Wright, now the U.S. energy secretary, raising concerns among watchdogs and lawmakers that aggressive tax minimization by a politically connected energy firm undercuts the administration’s claims about fair taxation and climate responsibility.

“Liberty’s tax position shows how a capital‑heavy fracking business can report hundreds of millions in profits while still booking a net benefit from the federal tax system,” says Bruckner. 

Read the article.