Keeping Law SimpleLegislation, clearly explained
Back to Alaska
Alaska2026Passed Legislature

SB92

New Income Tax for Certain Oil and Gas Entities in Alaska

Last scannedSep 21, 2026, 12:32 AM

In one sentence

This law creates a new income tax of 9.4 percent on specific oil or gas producers and transporters with taxable income over $5 million, effective January 1, 2025.

What it does

  • Requires qualified entities to pay a 9.4% tax only on the portion of their taxable income that exceeds $5,000,000 in a year.
  • Defines taxable income as money earned from producing oil or gas within the state or transporting it by pipeline in the state.
  • Allows the Department of Revenue to combine the income of multiple related businesses if they would reasonably be expected to belong to one entity without this law.
  • Limits which federal tax credits and deductions these entities can use, generally allowing only those permitted for C corporations.
  • Sets a deadline of January 1, 2026, for paying back taxes owed from before that date while waiving interest and penalties related to the retroactive nature of the law.

Who it affects

  • Sole proprietorships producing or transporting oil and gas in Alaska
  • Partnerships involved in state oil or gas production or transport by pipeline
  • Limited liability companies operating in the state's oil and gas sector
  • Entities that file federal returns under specific Internal Revenue Code sections (26 U.S.C. 1361-1379)

Limits and unknowns

  • The law does not apply to corporations already taxed under AS 43.20.011 or entities that are part of a unitary business with such corporations.
  • Entities cannot use most federal tax credits or deductions, except those allowed for C corporations.

Plain language

Terms to know

Qualified entity
A sole proprietorship, partnership, limited liability company, or an entity filing federal returns under specific Internal Revenue Code sections that produces or transports oil and gas in Alaska.
Taxable income
Income earned from producing oil or gas on state leases or properties, or from transporting oil or gas by pipeline within the state.
Unitary business
A group of separate companies treated as one single business for tax purposes because they work together closely; income from these related entities may be combined for this tax.

Official record

Sources

Source checked
Official bill pageIntroduced textCurrent bill text
Read the official summary

CORP. INCOME TAX; OIL & GAS ENTITIES An Act establishing an income tax on certain entities producing or transporting oil or gas in the state; and providing for an effective date.

Official activity

Bill history

  1. (S) REFERRED TO RULES1188
  2. (S) FN1: INDETERMINATE(REV)1188
  3. (S) DNP: KAUFMAN, CRONK1188
  4. (S) NR: STEDMAN, MERRICK1188
  5. (S) DP: OLSON, HOFFMAN, KIEHL1188
  6. (S) FIN RPT CS 3DP 2NR 2DNP SAME TITLE1188
  7. (S) Minutes (SFIN)Min
  8. (S) Moved CSSB 92(FIN) Out of CommitteeText
  9. (S) FINANCE at 09:00 AM SENATE FINANCE 532Text
  10. (S) Minutes (SFIN)Min
  11. (S) Heard & HeldText
  12. (S) FINANCE at 09:00 AM SENATE FINANCE 532Text
  13. (S) Minutes (SFIN)Min
  14. (S) Heard & Held -- Please Note Time Change --Text
  15. (S) FINANCE at 01:30 PM SENATE FINANCE 532Text
  16. (S) Minutes (SFIN)Min
  17. (S) Heard & HeldText
  18. (S) FINANCE at 09:00 AM SENATE FINANCE 532Text
  19. (S) Minutes (SFIN)Min
  20. (S) Heard & HeldText