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SENATE BILL NO. 112
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE SENATE RULES COMMITTEE
Introduced: 2/26/25
Referred: Resources, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to credits against the oil and gas production tax; and providing for an 1
effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 43.55.024(i) is amended to read: 4
(i) Subject to the restriction in (k) of this section, a [A] producer may apply 5
against the producer's tax liability for the calendar year unde r AS 43.55.011(e) a tax 6
credit of $5 for each barrel of oil taxable under AS 43.55.011( e) that receives a 7
reduction in the gross value at the point of production under A S 43.55.160(f) or (g) 8
and that is produced during a calendar year after December 31, 2013. A tax credit 9
authorized by this subsection may not reduce a producer's tax l iability for a calendar 10
year under AS 43.55.011(e) below zero. 11
* Sec. 2. AS 43.55.024(j) is amended to read: 12
(j) Subject to the restriction in (k) of this section, a [A] producer may apply 13
against the producer's tax liability for the calendar year unde r AS 43.55.011(e) a tax 14
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credit in the amount specified in this subsection for each barr el of oil taxable under 1
AS 43.55.011(e) that does not receive a reduction in the gross value at the point of 2
production under AS 43.55.160(f) or (g) and that is produced du ring a calendar year 3
after December 31, 2013, from leases or properties north of 68 degrees North latitude. 4
A tax credit under this subsection may not reduce a producer's tax liability for a 5
calendar year under AS 43.55.011(e) below the amount calculated under 6
AS 43.55.011(f). The amount of the tax credit for a barrel of t axable oil subject to this 7
subsection produced during a month of the calendar year is 8
(1) $5 [$8] for each barrel of taxable oil if the average gross value at 9
the point of production for the month is less than $80 a barrel; 10
(2) $4 [$7] for each barrel of taxable oil if the average gross value at 11
the point of production for the m onth is greater than or equal to $80 a barrel, but less 12
than $90 a barrel; 13
(3) $3 [$6] for each barrel of taxable oil if the average gross value at 14
the point of production for the m onth is greater than or equal to $90 a barrel, but less 15
than $100 a barrel; 16
(4) $2 [$5] for each barrel of taxable oil if the average gross value at 17
the point of production for the month is greater than or equal to $100 a barrel, but less 18
than $110 a barrel; 19
(5) $1 [$4] for each barrel of taxable oil if the average gross value at 20
the point of production for the m onth is greater than or equal to $110 a barrel [, BUT 21
LESS THAN $120 A BARREL; 22
(6) $3 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 23
GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 24
GREATER THAN OR EQUAL TO $120 A BARREL, BUT LESS THAN $130 A 25
BARREL; 26
(7) $2 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 27
GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 28
GREATER THAN OR EQUAL TO $130 A BARREL, BUT LESS THAN $140 A 29
BARREL; 30
(8) $1 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 31
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GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 1
GREATER THAN OR EQUAL TO $140 A BARREL, BUT LESS THAN $150 A 2
BARREL; 3
(9) ZERO IF THE AVERAGE GROSS VALUE AT THE POINT OF 4
PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $150 A 5
BARREL]. 6
* Sec. 3. AS 43.55.024 is amended by adding a new subsection to read: 7
(k) In a calendar year, for each lease or property, a producer may not apply 8
against the producer's tax liability under AS 43.55.011(e) credits earned under (i) or (j) 9
of this section in an amount that exceeds the producer's qualif ied capital expenditures 10
f o r th e le a s e o r p r o p e r ty . A p r o d u c e r may n o t ca r ry f o r wa r d a n unused credit under 11
this subsection. In this subsec tion, "qualified capital expendi ture" has the meaning 12
given in AS 43.55.023(o). 13
* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 14
read: 15
APPLICABILITY. AS 43.55.024(i) and (j), as amended by secs. 1 a nd 2 of this Act, 16
and AS 43.55.024(k), added by sec. 3 of this Act, apply to cred its resulting from oil produced 17
on or after January 1, 2025. 18
* Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 19
read: 20
TRANSITION: PAYMENT OF TAX. Not withstanding AS 43.55.020, a per son 21
subject to an adjustment to tax liability as a result of AS 43. 55.024(i) and (j), as amended by 22
secs. 1 and 2 of this Act, and AS 43.55.024(k), added by sec. 3 of this Act, shall pay the 23
balance of the tax due befor e January 1, 2026, by January 1, 20 26. Until January 1, 2026, the 24
Department of Revenue s hall waive interest that would otherwise accrue under AS 43.05.225 25
and civil and criminal penalties accruing under AS 43.05.220, 4 3.05.245, and 43.05.290 that 26
are a result of the retroactivity of this Act. 27
* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 28
read: 29
RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provis ion of 30
AS 44.62.240, if the Department of Re venue expressly designates in a regulation that the 31
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regulation applies retroactively to a specific date, a regulati on adopted by the department to 1
implement, interpret, make specific, or otherwise carry out thi s Act applies retroactively to 2
that date. 3
* Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 4
read: 5
RETROACTIVITY. This Act is retroactive to January 1, 2025. 6
* Sec. 8. This Act takes effect immediately under AS 01.10.070(c). 7