Alaska 2025-2026 Regular Session

Alaska Senate Bill SB112 Compare Versions

Only one version of the bill is available at this time.

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2	2	SB0112A -1- SB 112
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5	5	34-LS0566\N
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11	11	SENATE BILL NO. 112
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY THE SENATE RULES COMMITTEE
18	18
19	19	Introduced: 2/26/25
20	20	Referred: Resources, Finance
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to credits against the oil and gas production tax; and providing for an 1
28	28	effective date." 2
29	29	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
30	30	* Section 1. AS 43.55.024(i) is amended to read: 4
31	31	(i) Subject to the restriction in (k) of this section, a [A] producer may apply
32	32	5
33	33	against the producer's tax liability for the calendar year under AS 43.55.011(e) a tax 6
34	34	credit of $5 for each barrel of oil taxable under AS 43.55.011(e) that receives a 7
35	35	reduction in the gross value at the point of production under AS 43.55.160(f) or (g) 8
36	36	and that is produced during a calendar year after December 31, 2013. A tax credit 9
37	37	authorized by this subsection may not reduce a producer's tax liability for a calendar 10
38	38	year under AS 43.55.011(e) below zero. 11
39	39	* Sec. 2. AS 43.55.024(j) is amended to read: 12
40	40	(j) Subject to the restriction in (k) of this section, a [A] producer may apply 13
41	41	against the producer's tax liability for the calendar year under AS 43.55.011(e) a tax 14 34-LS0566\N
42	42	SB 112 -2- SB0112A
43	43	New Text Underlined [DELETED TEXT BRACKETED]
44	44
45	45	credit in the amount specified in this subsection for each barrel of oil taxable under 1
46	46	AS 43.55.011(e) that does not receive a reduction in the gross value at the point of 2
47	47	production under AS 43.55.160(f) or (g) and that is produced during a calendar year 3
48	48	after December 31, 2013, from leases or properties north of 68 degrees North latitude. 4
49	49	A tax credit under this subsection may not reduce a producer's tax liability for a 5
50	50	calendar year under AS 43.55.011(e) below the amount calculated under 6
51	51	AS 43.55.011(f). The amount of the tax credit for a barrel of taxable oil subject to this 7
52	52	subsection produced during a month of the calendar year is 8
53	53	(1) $5 [$8] for each barrel of taxable oil if the average gross value at 9
54	54	the point of production for the month is less than $80 a barrel; 10
55	55	(2) $4 [$7] for each barrel of taxable oil if the average gross value at 11
56	56	the point of production for the month is greater than or equal to $80 a barrel, but less 12
57	57	than $90 a barrel; 13
58	58	(3) $3 [$6] for each barrel of taxable oil if the average gross value at 14
59	59	the point of production for the month is greater than or equal to $90 a barrel, but less 15
60	60	than $100 a barrel; 16
61	61	(4) $2 [$5] for each barrel of taxable oil if the average gross value at 17
62	62	the point of production for the month is greater than or equal to $100 a barrel, but less 18
63	63	than $110 a barrel; 19
64	64	(5) $1 [$4] for each barrel of taxable oil if the average gross value at 20
65	65	the point of production for the month is greater than or equal to $110 a barrel [, BUT 21
66	66	LESS THAN $120 A BARREL; 22
67	67	(6) $3 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 23
68	68	GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 24
69	69	GREATER THAN OR EQUAL TO $120 A BARREL, BUT LESS THAN $130 A 25
70	70	BARREL; 26
71	71	(7) $2 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 27
72	72	GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 28
73	73	GREATER THAN OR EQUAL TO $130 A BARREL, BUT LESS THAN $140 A 29
74	74	BARREL; 30
75	75	(8) $1 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 31 34-LS0566\N
76	76	SB0112A -3- SB 112
77	77	New Text Underlined [DELETED TEXT BRACKETED]
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79	79	GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 1
80	80	GREATER THAN OR EQUAL TO $140 A BARREL, BUT LESS THAN $150 A 2
81	81	BARREL; 3
82	82	(9) ZERO IF THE AVERAGE GROSS VALUE AT THE POINT OF 4
83	83	PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $150 A 5
84	84	BARREL]. 6
85	85	* Sec. 3. AS 43.55.024 is amended by adding a new subsection to read: 7
86	86	(k) In a calendar year, for each lease or property, a producer may not apply 8
87	87	against the producer's tax liability under AS 43.55.011(e) credits earned under (i) or (j) 9
88	88	of this section in an amount that exceeds the producer's qualified capital expenditures 10
89	89	for the lease or property. A producer may not carry forward an unused credit under 11
90	90	this subsection. In this subsection, "qualified capital expenditure" has the meaning 12
91	91	given in AS 43.55.023(o). 13
92	92	* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 14
93	93	read: 15
94	94	APPLICABILITY. AS 43.55.024(i) and (j), as amended by secs. 1 and 2 of this Act, 16
95	95	and AS 43.55.024(k), added by sec. 3 of this Act, apply to credits resulting from oil produced 17
96	96	on or after January 1, 2025. 18
97	97	* Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 19
98	98	read: 20
99	99	TRANSITION: PAYMENT OF TAX. Not withstanding AS 43.55.020, a person 21
100	100	subject to an adjustment to tax liability as a result of AS 43.55.024(i) and (j), as amended by 22
101	101	secs. 1 and 2 of this Act, and AS 43.55.024(k), added by sec. 3 of this Act, shall pay the 23
102	102	balance of the tax due before January 1, 2026, by January 1, 2026. Until January 1, 2026, the 24
103	103	Department of Revenue shall waive interest that would otherwise accrue under AS 43.05.225 25
104	104	and civil and criminal penalties accruing under AS 43.05.220, 43.05.245, and 43.05.290 that 26
105	105	are a result of the retroactivity of this Act. 27
106	106	* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 28
107	107	read: 29
108	108	RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provision of 30
109	109	AS 44.62.240, if the Department of Revenue expressly designates in a regulation that the 31 34-LS0566\N
110	110	SB 112 -4- SB0112A
111	111	New Text Underlined [DELETED TEXT BRACKETED]
112	112
113	113	regulation applies retroactively to a specific date, a regulation adopted by the department to 1
114	114	implement, interpret, make specific, or otherwise carry out this Act applies retroactively to 2
115	115	that date. 3
116	116	* Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 4
117	117	read: 5
118	118	RETROACTIVITY. This Act is retroactive to January 1, 2025. 6
119	119	* Sec. 8. This Act takes effect immediately under AS 01.10.070(c). 7