Bill > SB92

This bill establishes a new corporate income tax specifically targeting oil and gas entities in Alaska, requiring qualifying businesses with taxable income over $5,000,000 to pay a 9.4% tax on income exceeding that threshold. A "qualified entity" includes sole proprietorships, partnerships, limited liability companies, and certain pass-through entities involved in oil or gas production or pipeline transportation within the state. The bill modifies existing tax regulations by determining taxable income using C corporation tax rules and limiting certain federal tax credits and deductions. The tax will apply to tax years beginning on or after January 1, 2025, and is designed to capture income from oil and gas operations while excluding corporations already subject to existing state tax laws. The bill includes provisions for aggregating taxable income across related entities to prevent tax avoidance and allows for deductions of certain payments to shareholders or owners. To ease implementation, the Department of Revenue will waive interest and penalties for tax payments related to this new law until January 1, 2026, and the bill explicitly states its retroactive application to January 1, 2025.

Agriculture and Natural Resources

Resources (S)

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB92