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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 under 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 AS 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 liability 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 under AS 43.55.011(e) a tax 14 34-LS0566\N
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credit in the amount specified in this subsection for each barrel 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 during 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 taxable 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 month 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 month 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 month 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 34-LS0566\N
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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 qualified capital expenditures 10
for the lease or property. A producer may not carry forward an unused credit under 11
this subsection. In this subsection, "qualified capital expenditure" 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 and 2 of this Act, 16
and AS 43.55.024(k), added by sec. 3 of this Act, apply to credits 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 person 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 before January 1, 2026, by January 1, 2026. Until January 1, 2026, the 24
Department of Revenue shall waive interest that would otherwise accrue under AS 43.05.225 25
and civil and criminal penalties accruing under AS 43.05.220, 43.05.245, 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 provision of 30
AS 44.62.240, if the Department of Revenue expressly designates in a regulation that the 31 34-LS0566\N
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regulation applies retroactively to a specific date, a regulation adopted by the department to 1
implement, interpret, make specific, or otherwise carry out this 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