Bill > SB112

This bill modifies the oil and gas production tax credit system in Alaska by adjusting the tax credits that oil producers can claim for barrels of oil produced in different regions and at different price points. Specifically, the bill reduces the per-barrel tax credit amounts for oil produced north of 68 degrees North latitude, with credits now ranging from $1 to $5 depending on the gross value at the point of production, compared to the previous range of $3 to $8. The bill introduces a new restriction that limits these tax credits to the producer's qualified capital expenditures for each lease or property, meaning producers cannot claim more in credits than they have invested in capital improvements. Additionally, the bill includes provisions for a transition period, allowing producers until January 1, 2026, to pay any adjusted tax liability without incurring interest or penalties. The changes will apply to oil produced on or after January 1, 2025, and the bill is retroactive to that date. The Department of Revenue is also granted the ability to apply regulations retroactively to implement these changes. By limiting tax credits and tying them more closely to capital investments, the bill aims to create a more controlled and financially responsible approach to oil and gas production tax incentives.

Agriculture and Natural Resources

Rules (S)

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB112