00 CS FOR HOUSE BILL NO. 111(RES) 01 "An Act relating to the oil and gas production tax, tax payments, and credits; relating to 02 interest applicable to delinquent oil and gas production tax; relating to lease 03 expenditures; relating to information concerning oil and gas taxes and tax credits, 04 including information about expenditures that must be provided to claim an oil and gas 05 production tax credit for those expenditures; relating to the disclosure of that 06 information to the public or a member of the legislature; relating to a legislative 07 working group; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 LEGISLATIVE INTENT. It is the intent of the legislature to, contingent on the 12 passage of a fiscal plan, purchase a substantial portion of outstanding transferable and 13 production tax credit certificates issued before the effective date of this Act under AS 43.55. 01  * Sec. 2. AS 43.05.225 is amended to read: 02 Sec. 43.05.225. Interest. Unless otherwise provided, 03 (1) a delinquent tax 04 (A) under this title, before January 1, 2014, bears interest in 05 each calendar quarter at the rate of five percentage points above the annual rate 06 charged member banks for advances by the 12th Federal Reserve District as of 07 the first day of that calendar quarter, or at the annual rate of 11 percent, 08 whichever is greater, compounded quarterly as of the last day of that quarter; 09 (B) under this title, on and after January 1, 2014, except as 10 provided in (C) of this paragraph, bears interest in each calendar quarter at the 11 rate of three percentage points above the annual rate charged member banks 12 for advances by the 12th Federal Reserve District as of the first day of that 13 calendar quarter; 14 (C) under AS 43.55, on and after January 1, 2017, 15 [(i) FOR THE FIRST THREE YEARS AFTER A TAX 16 BECOMES DELINQUENT,] bears interest in each calendar quarter at 17 the rate of seven percentage points above the annual rate charged 18 member banks for advances by the 12th Federal Reserve District as of 19 the first day of that calendar quarter, compounded quarterly as of the 20 last day of that quarter; [AND 21 (ii) AFTER THE FIRST THREE YEARS AFTER A 22 TAX BECOMES DELINQUENT, DOES NOT BEAR INTEREST;] 23 (2) the interest rate is 12 percent a year for 24 (A) delinquent fees payable under AS 05.15.095(c); and 25 (B) unclaimed property that is not timely paid or delivered, as 26 allowed by AS 34.45.470(a). 27  * Sec. 3. AS 43.05.230(a) is amended to read: 28 (a) It is unlawful for a current or former officer, employee, or agent of the 29 state to divulge the amount of income or the particulars set out or disclosed in a report 30 or return made under this title, except 31 (1) in connection with official investigations or proceedings of the 01 department, whether judicial or administrative, involving taxes due under this title; 02 (2) in connection with official investigations or proceedings of the 03 child support enforcement agency, whether judicial or administrative, involving child 04 support obligations imposed or imposable under AS 25 or AS 47; 05 (3) as provided in AS 38.05.036 pertaining to audit functions of the 06 Department of Natural Resources; 07 (4) as provided in AS 43.05.405 - 43.05.499; and 08 (5) as otherwise provided in this section, AS 43.55.030(g),  09 43.55.165(n), or 43.55.890 [OR AS 43.55.890]. 10  * Sec. 4. AS 43.05.230(l) is amended to read: 11 (l) The [FOR TAX CREDIT CERTIFICATES PURCHASED BY THE 12 DEPARTMENT IN THE PRECEDING CALENDAR YEAR UNDER AS 43.55.028, 13 THE] department shall make the following information public by April 30 of each 14 year: 15 (1) for tax credit certificates issued or purchased by the  16 department in the preceding calendar year under AS 43.55.028:  17 (A) the name of each person to which a transferable tax  18 certificate was issued or from which the department purchased a transferable 19 tax credit certificate; and 20 (B) [(2)] the aggregate amount of the tax credit certificates 21 purchased from the person in the preceding calendar year;  22 (C) the aggregate amount of the tax credit certificates  23 issued to the person in the preceding calendar year; and  24 (2) unless otherwise prohibited by law, information submitted  25 during the previous calendar year under AS 43.55.030(a)(10) and (e)(3).  26  * Sec. 5. AS 43.05.230 is amended by adding a new subsection to read: 27 (m) The department may disclose confidential tax information, documents, or 28 other materials related to a credit for oil and gas investment, exploration, production, 29 delivery, storage, or use against a tax imposed under AS 43.20 or AS 43.55 to a 30 legislator, an agent of a legislator or a legislative committee, or a contractor of a 31 legislator or a legislative committee if 01 (1) the information is disclosed during an executive session of a 02 committee hearing or an executive session of a meeting of one house of the legislature 03 as a committee of the whole; 04 (2) only legislators, agents, and contractors complying with the 05 remainder of this subsection are in attendance at the committee meeting; 06 (3) written information, documents, or other materials are clearly 07 labeled as confidential tax information; 08 (4) the legislator, agent, or contractor has executed an agreement with 09 the department 10 (A) that acknowledges that tax information, documents, and 11 materials received under this subsection are confidential by law; 12 (B) that acknowledges that it is illegal to publicly disclose 13 confidential tax information, documents, or materials received under this 14 subsection unless the information is otherwise publicly available; and 15 (C) in which the legislator, agent, or contractor agrees not to 16 (i) disclose the information received during the meeting 17 or the contents of documents or materials viewed during a committee 18 meeting under this section; and 19 (ii) remove any written information, documents, or 20 materials from the physical location of the committee meeting.  21  * Sec. 6. AS 43.55.011(f) is amended to read:  22 (f) The levy of tax under (e) of this section for 23 (1) oil and gas produced before January 1, 2018 [JANUARY 1, 24 2022], from leases or properties that include land north of 68 degrees North latitude, 25 other than gas subject to (o) of this section, may not be less than 26 (A) four percent of the gross value at the point of production 27 when the average price per barrel for Alaska North Slope crude oil for sale on 28 the United States West Coast during the calendar year for which the tax is due 29 is more than $25; 30 (B) three percent of the gross value at the point of production 31 when the average price per barrel for Alaska North Slope crude oil for sale on 01 the United States West Coast during the calendar year for which the tax is due 02 is over $20 but not over $25; 03 (C) two percent of the gross value at the point of production 04 when the average price per barrel for Alaska North Slope crude oil for sale on 05 the United States West Coast during the calendar year for which the tax is due 06 is over $17.50 but not over $20; 07 (D) one percent of the gross value at the point of production 08 when the average price per barrel for Alaska North Slope crude oil for sale on 09 the United States West Coast during the calendar year for which the tax is due 10 is over $15 but not over $17.50; or 11 (E) zero percent of the gross value at the point of production 12 when the average price per barrel for Alaska North Slope crude oil for sale on 13 the United States West Coast during the calendar year for which the tax is due 14 is $15 or less; [AND] 15 (2) gas [OIL] produced on and after January 1, 2018, and before 16 January 1, 2022, from leases or properties that include land north of 68 degrees North 17 latitude, other than gas subject to (o) of this section, may not be less than 18 (A) four percent of the gross value at the point of production 19 when the average price per barrel for Alaska North Slope crude oil for sale on 20 the United States West Coast during the calendar year for which the tax is due 21 is less [MORE] than $50; or [$25;] 22 (B) five [THREE] percent of the gross value at the point of 23 production when the average price per barrel for Alaska North Slope crude oil 24 for sale on the United States West Coast during the calendar year for which the 25 tax is due is $50 or more; and  26 (3) oil produced on and after January 1, 2018, from leases or  27 properties that include land north of 68 degrees North latitude may not be less  28 than  29 (A) four percent of the gross value at the point of  30 production when the average price per barrel for Alaska North Slope  31 crude oil for sale on the United States West Coast during the calendar  01 year for which the tax is due is less than $50; or  02 (B) five percent of the gross value at the point of production  03 when the average price per barrel for Alaska North Slope crude oil for  04 sale on the United States West Coast during the calendar year for which  05 the tax is due is $50 or more [OVER $20 BUT NOT OVER $25; 06 (C) TWO PERCENT OF THE GROSS VALUE AT THE 07 POINT OF PRODUCTION WHEN THE AVERAGE PRICE PER BARREL 08 FOR ALASKA NORTH SLOPE CRUDE OIL FOR SALE ON THE UNITED 09 STATES WEST COAST DURING THE CALENDAR YEAR FOR WHICH 10 THE TAX IS DUE IS OVER $17.50 BUT NOT OVER $20; 11 (D) ONE PERCENT OF THE GROSS VALUE AT THE 12 POINT OF PRODUCTION WHEN THE AVERAGE PRICE PER BARREL 13 FOR ALASKA NORTH SLOPE CRUDE OIL FOR SALE ON THE UNITED 14 STATES WEST COAST DURING THE CALENDAR YEAR FOR WHICH 15 THE TAX IS DUE IS OVER $15 BUT NOT OVER $17.50; OR 16 (E) ZERO PERCENT OF THE GROSS VALUE AT THE 17 POINT OF PRODUCTION WHEN THE AVERAGE PRICE PER BARREL 18 FOR ALASKA NORTH SLOPE CRUDE OIL FOR SALE ON THE UNITED 19 STATES WEST COAST DURING THE CALENDAR YEAR FOR WHICH 20 THE TAX IS DUE IS $15 OR LESS]. 21  * Sec. 7. AS 43.55.011 is amended by adding new subsections to read: 22 (q) Except as otherwise provided in this subsection, a credit under this chapter 23 may not be applied to reduce the tax determined under (f) of this section. A credit 24 under AS 43.55.024(i) may reduce the tax determined under (f) of this section, but not 25 below 26 (1) for gas produced on and after January 1, 2018, and before 27 January 1, 2022, 28 (A) four percent of the adjusted gross value at the point of 29 production when the average price per barrel for Alaska North Slope crude oil 30 for sale on the United States West Coast during the calendar year for which the 31 tax is due is less than $50; or 01 (B) five percent of the adjusted gross value at the point of 02 production when the average price per barrel for Alaska North Slope crude oil 03 for sale on the United States West Coast during the calendar year for which the 04 tax is due is $50 or more; 05 (2) for oil produced on and after January 1, 2018, 06 (A) four percent of the adjusted gross value at the point of 07 production when the average price per barrel for Alaska North Slope crude oil 08 for sale on the United States West Coast during the calendar year for which the 09 tax is due is less than $50; or 10 (B) five percent of the adjusted gross value at the point of 11 production when the average price per barrel for Alaska North Slope crude oil 12 for sale on the United States West Coast during the calendar year for which the 13 tax is due is $50 or more.  14 (r) The total amount of tax credits received under AS 43.55.024(i) or (j) that a 15 producer applies against the tax levied by this section for a calendar year may not 16 exceed the sum of the amount of the tax credits or fractions of tax credits that are 17 allowed under AS 43.55.020(a) to be subtracted in calculating the installment 18 payments of estimated tax for each month for that producer in the calendar year. 19 (s) In (q) of this section, "adjusted gross value at the point of production" 20 means the gross value at the point of production less a reduction from the gross value 21 at the point of production under AS 43.55.160(f) or 43.55.160(f) and (g). 22  * Sec. 8. AS 43.55.020(a) is amended to read: 23 (a) For a calendar year, a producer subject to tax under AS 43.55.011 shall pay 24 the tax as follows: 25 (1) for oil and gas produced before January 1, 2014, an installment 26 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 27 as allowed by law, is due for each month of the calendar year on the last day of the 28 following month; except as otherwise provided under (2) of this subsection, the 29 amount of the installment payment is the sum of the following amounts, less 1/12 of 30 the tax credits that are allowed by law to be applied against the tax levied by 31 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 01 not be less than zero: 02 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 03 produced from leases or properties in the state outside the Cook Inlet 04 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 05 the greater of 06 (i) zero; or 07 (ii) the sum of 25 percent and the tax rate calculated for 08 the month under AS 43.55.011(g) multiplied by the remainder obtained 09 by subtracting 1/12 of the producer's adjusted lease expenditures for the 10 calendar year of production under AS 43.55.165 and 43.55.170 that are 11 deductible for the oil and gas under AS 43.55.160 from the gross value 12 at the point of production of the oil and gas produced from the leases or 13 properties during the month for which the installment payment is 14 calculated; 15 (B) for oil and gas produced from leases or properties subject 16 to AS 43.55.011(f), the greatest of 17 (i) zero; 18 (ii) zero percent, one percent, two percent, three 19 percent, or four percent, as applicable, of the gross value at the point of 20 production of the oil and gas produced from the leases or properties 21 during the month for which the installment payment is calculated; or 22 (iii) the sum of 25 percent and the tax rate calculated for 23 the month under AS 43.55.011(g) multiplied by the remainder obtained 24 by subtracting 1/12 of the producer's adjusted lease expenditures for the 25 calendar year of production under AS 43.55.165 and 43.55.170 that are 26 deductible for the oil and gas under AS 43.55.160 from the gross value 27 at the point of production of the oil and gas produced from those leases 28 or properties during the month for which the installment payment is 29 calculated; 30 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 31 each lease or property, the greater of 01 (i) zero; or 02 (ii) the sum of 25 percent and the tax rate calculated for 03 the month under AS 43.55.011(g) multiplied by the remainder obtained 04 by subtracting 1/12 of the producer's adjusted lease expenditures for the 05 calendar year of production under AS 43.55.165 and 43.55.170 that are 06 deductible under AS 43.55.160 for the oil or gas, respectively, 07 produced from the lease or property from the gross value at the point of 08 production of the oil or gas, respectively, produced from the lease or 09 property during the month for which the installment payment is 10 calculated; 11 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 12 (i) the sum of 25 percent and the tax rate calculated for 13 the month under AS 43.55.011(g) multiplied by the remainder obtained 14 by subtracting 1/12 of the producer's adjusted lease expenditures for the 15 calendar year of production under AS 43.55.165 and 43.55.170 that are 16 deductible for the oil and gas under AS 43.55.160 from the gross value 17 at the point of production of the oil and gas produced from the leases or 18 properties during the month for which the installment payment is 19 calculated, but not less than zero; or 20 (ii) four percent of the gross value at the point of 21 production of the oil and gas produced from the leases or properties 22 during the month, but not less than zero; 23 (2) an amount calculated under (1)(C) of this subsection for oil or gas 24 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 25 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 26 applicable, for gas or set out in AS 43.55.011(k) for oil, but substituting in 27 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 28 gas produced during the month for the amount of taxable gas produced during the 29 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced 30 during the month for the amount of taxable oil produced during the calendar year; 31 (3) an installment payment of the estimated tax levied by 01 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 02 on the last day of the following month; the amount of the installment payment is the 03 sum of 04 (A) the applicable tax rate for oil provided under 05 AS 43.55.011(i), multiplied by the gross value at the point of production of the 06 oil taxable under AS 43.55.011(i) and produced from the lease or property 07 during the month; and 08 (B) the applicable tax rate for gas provided under 09 AS 43.55.011(i), multiplied by the gross value at the point of production of the 10 gas taxable under AS 43.55.011(i) and produced from the lease or property 11 during the month; 12 (4) any amount of tax levied by AS 43.55.011, net of any credits 13 applied as allowed by law, that exceeds the total of the amounts due as installment 14 payments of estimated tax is due on March 31 of the year following the calendar year 15 of production; 16 (5) for oil and gas produced on and after January 1, 2014, and before 17 January 1, 2022, an installment payment of the estimated tax levied by 18 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 19 month of the calendar year on the last day of the following month; except as otherwise 20 provided under (6) of this subsection, the amount of the installment payment is the 21 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 22 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 23 of the installment payment may not be less than zero: 24 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 25 produced from leases or properties in the state outside the Cook Inlet 26 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 27 the greater of 28 (i) zero; or 29 (ii) 35 percent multiplied by the remainder obtained by 30 subtracting 1/12 of the producer's adjusted lease expenditures for the 31 calendar year of production under AS 43.55.165 and 43.55.170 that are 01 deductible for the oil and gas under AS 43.55.160 from the gross value 02 at the point of production of the oil and gas produced from the leases or 03 properties during the month for which the installment payment is 04 calculated; 05 (B) for oil and gas produced from leases or properties subject 06 to AS 43.55.011(f), the greatest of 07 (i) zero; 08 (ii) the percentage applicable under AS 43.55.011(f) 09 [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE 10 PERCENT, OR FOUR PERCENT, AS APPLICABLE,] of the gross 11 value at the point of production of the oil and gas produced from the 12 leases or properties during the month for which the installment 13 payment is calculated; or 14 (iii) 35 percent multiplied by the remainder obtained by 15 subtracting 1/12 of the producer's adjusted lease expenditures for the 16 calendar year of production under AS 43.55.165 and 43.55.170 that are 17 deductible for the oil and gas under AS 43.55.160 from the gross value 18 at the point of production of the oil and gas produced from those leases 19 or properties during the month for which the installment payment is 20 calculated, except that, for the purposes of this calculation, a reduction 21 from the gross value at the point of production may apply for oil and 22 gas subject to AS 43.55.160(f) or (g); 23 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 24 each lease or property, the greater of 25 (i) zero; or 26 (ii) 35 percent multiplied by the remainder obtained by 27 subtracting 1/12 of the producer's adjusted lease expenditures for the 28 calendar year of production under AS 43.55.165 and 43.55.170 that are 29 deductible under AS 43.55.160 for the oil or gas, respectively, 30 produced from the lease or property from the gross value at the point of 31 production of the oil or gas, respectively, produced from the lease or 01 property during the month for which the installment payment is 02 calculated; 03 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 04 (i) 35 percent multiplied by the remainder obtained by 05 subtracting 1/12 of the producer's adjusted lease expenditures for the 06 calendar year of production under AS 43.55.165 and 43.55.170 that are 07 deductible for the oil and gas under AS 43.55.160 from the gross value 08 at the point of production of the oil and gas produced from the leases or 09 properties during the month for which the installment payment is 10 calculated, but not less than zero; or 11 (ii) four percent of the gross value at the point of 12 production of the oil and gas produced from the leases or properties 13 during the month, but not less than zero; 14 (6) an amount calculated under (5)(C) of this subsection for oil or gas 15 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 16 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 17 applicable, for gas or set out in AS 43.55.011(k) for oil, but substituting in 18 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 19 gas produced during the month for the amount of taxable gas produced during the 20 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced 21 during the month for the amount of taxable oil produced during the calendar year; 22 (7) for oil and gas produced on or after January 1, 2022, an installment 23 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 24 as allowed by law, is due for each month of the calendar year on the last day of the 25 following month; except as otherwise provided under (10) of this subsection, the 26 amount of the installment payment is the sum of the following amounts, less 1/12 of 27 the tax credits that are allowed by law to be applied against the tax levied by 28 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 29 not be less than zero: 30 (A) for oil produced from leases or properties subject to 31 AS 43.55.011(f), the greatest of 01 (i) zero; 02 (ii) the percentage applicable under AS 43.55.011(f) 03 [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE 04 PERCENT, OR FOUR PERCENT, AS APPLICABLE,] of the gross 05 value at the point of production of the oil produced from the leases or 06 properties during the month for which the installment payment is 07 calculated; or 08 (iii) 35 percent multiplied by the remainder obtained by 09 subtracting 1/12 of the producer's adjusted lease expenditures for the 10 calendar year of production under AS 43.55.165 and 43.55.170 that are 11 deductible for the oil under AS 43.55.160(h)(1) from the gross value at 12 the point of production of the oil produced from those leases or 13 properties during the month for which the installment payment is 14 calculated, except that, for the purposes of this calculation, a reduction 15 from the gross value at the point of production may apply for oil 16 subject to AS 43.55.160(f) or 43.55.160(f) and (g); 17 (B) for oil produced before or during the last calendar year 18 under AS 43.55.024(b) for which the producer could take a tax credit under 19 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet 20 sedimentary basin, no part of which is north of 68 degrees North latitude, other 21 than leases or properties subject to AS 43.55.011(o) or (p), the greater of 22 (i) zero; or 23 (ii) 35 percent multiplied by the remainder obtained by 24 subtracting 1/12 of the producer's adjusted lease expenditures for the 25 calendar year of production under AS 43.55.165 and 43.55.170 that are 26 deductible for the oil under AS 43.55.160(h)(2) from the gross value at 27 the point of production of the oil produced from the leases or properties 28 during the month for which the installment payment is calculated; 29 (C) for oil and gas produced from leases or properties subject 30 to AS 43.55.011(p), except as otherwise provided under (8) of this subsection, 31 the sum of 01 (i) 35 percent multiplied by the remainder obtained by 02 subtracting 1/12 of the producer's adjusted lease expenditures for the 03 calendar year of production under AS 43.55.165 and 43.55.170 that are 04 deductible for the oil under AS 43.55.160(h)(3) from the gross value at 05 the point of production of the oil produced from the leases or properties 06 during the month for which the installment payment is calculated, but 07 not less than zero; and 08 (ii) 13 percent of the gross value at the point of 09 production of the gas produced from the leases or properties during the 10 month, but not less than zero; 11 (D) for oil produced from leases or properties in the state, no 12 part of which is north of 68 degrees North latitude, other than leases or 13 properties subject to (B), (C), or (F) of this paragraph, the greater of 14 (i) zero; or 15 (ii) 35 percent multiplied by the remainder obtained by 16 subtracting 1/12 of the producer's adjusted lease expenditures for the 17 calendar year of production under AS 43.55.165 and 43.55.170 that are 18 deductible for the oil under AS 43.55.160(h)(4) from the gross value at 19 the point of production of the oil produced from the leases or properties 20 during the month for which the installment payment is calculated; 21 (E) for gas produced from each lease or property in the state 22 outside the Cook Inlet sedimentary basin, other than a lease or property subject 23 to AS 43.55.011(o) or (p), 13 percent of the gross value at the point of 24 production of the gas produced from the lease or property during the month for 25 which the installment payment is calculated, but not less than zero; 26 (F) for oil subject to AS 43.55.011(k), for each lease or 27 property, the greater of 28 (i) zero; or 29 (ii) 35 percent multiplied by the remainder obtained by 30 subtracting 1/12 of the producer's adjusted lease expenditures for the 31 calendar year of production under AS 43.55.165 and 43.55.170 that are 01 deductible under AS 43.55.160 for the oil produced from the lease or 02 property from the gross value at the point of production of the oil 03 produced from the lease or property during the month for which the 04 installment payment is calculated; 05 (G) for gas subject to AS 43.55.011(j) or (o), for each lease or 06 property, the greater of 07 (i) zero; or 08 (ii) 13 percent of the gross value at the point of 09 production of the gas produced from the lease or property during the 10 month for which the installment payment is calculated; 11 (8) an amount calculated under (7)(C) of this subsection may not 12 exceed four percent of the gross value at the point of production of the oil and gas 13 produced from leases or properties subject to AS 43.55.011(p) during the month for 14 which the installment payment is calculated; 15 (9) for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and 16 (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the point 17 of production is determined under AS 43.55.011(f)(1) or (2) but substituting the 18 phrase "month for which the installment payment is calculated" in AS 43.55.011(f)(1) 19 and (2) for the phrase "calendar year for which the tax is due"; 20 (10) an amount calculated under (7)(F) or (G) of this subsection for oil 21 or gas subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 22 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 23 applicable, for gas, or set out in AS 43.55.011(k) for oil, but substituting in 24 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 25 gas produced during the month for the amount of taxable gas produced during the 26 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced 27 during the month for the amount of taxable oil produced during the calendar year; 28 (11) for purposes of the calculation under (5)(B)(ii) or (7)(A)(ii) of  29 this subsection, a credit under this chapter may not be applied to reduce an  30 installment payment to less than the amount calculated using the applicable  31 percentage under AS 43.55.011(f) or (q).  01  * Sec. 9. AS 43.55.023(b) is amended to read: 02 (b) [BEFORE JANUARY 1, 2014, A PRODUCER OR EXPLORER MAY 03 ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 25 PERCENT OF A 04 CARRIED-FORWARD ANNUAL LOSS. FOR LEASE EXPENDITURES 05 INCURRED ON AND AFTER JANUARY 1, 2014, AND BEFORE JANUARY 1, 06 2016, TO EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS 07 LOCATED NORTH OF 68 DEGREES NORTH LATITUDE, A PRODUCER OR 08 EXPLORER MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 45 09 PERCENT OF A CARRIED-FORWARD ANNUAL LOSS. FOR LEASE 10 EXPENDITURES INCURRED ON AND AFTER JANUARY 1, 2016, TO 11 EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS LOCATED 12 NORTH OF 68 DEGREES NORTH LATITUDE, A PRODUCER OR EXPLORER 13 MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 35 PERCENT OF 14 A CARRIED-FORWARD ANNUAL LOSS. FOR LEASE EXPENDITURES 15 INCURRED ON OR AFTER JANUARY 1, 2014, AND BEFORE JANUARY 1, 16 2017, TO EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS 17 LOCATED SOUTH OF 68 DEGREES NORTH LATITUDE, A PRODUCER OR 18 EXPLORER MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 25 19 PERCENT OF A CARRIED-FORWARD ANNUAL LOSS.] For lease expenditures 20 incurred [ON OR AFTER JANUARY 1, 2017,] to explore for, develop, or produce oil 21 or gas deposits located south of 68 degrees North latitude, a producer or explorer may 22 elect to take a tax credit in the amount of 15 percent of a carried-forward annual loss, 23 except that a credit for lease expenditures incurred to explore for, develop, or produce 24 oil or gas deposits located in the Cook Inlet sedimentary basin may only be taken if 25 the expenditure is incurred before January 1, 2018. A credit under this subsection may 26 be applied against a tax levied by AS 43.55.011(e). For purposes of this subsection, 27 (1) a carried-forward annual loss is the amount of a producer's or 28 explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a 29 previous calendar year that was not deductible in calculating production tax values for 30 that calendar year under AS 43.55.160; 31 (2) for lease expenditures incurred on or after January 1, 2017, any 01 reduction under AS 43.55.160(f) or (g) is added back to the calculation of production 02 tax values for that calendar year under AS 43.55.160 for the determination of a 03 carried-forward annual loss.  04  * Sec. 10. AS 43.55.023(c) is amended to read: 05 (c) A credit or portion of a credit under this section may not be used to reduce 06 a person's tax liability under AS 43.55.011(e) for any calendar year below zero or the  07 amount calculated under AS 43.55.011(f), if applicable, and any unused credit or 08 portion of a credit not used under this subsection may be applied in a later calendar 09 year. 10  * Sec. 11. AS 43.55.023(d) is amended to read: 11 (d) A person that is entitled to take a tax credit under this section that wishes 12 to transfer the unused credit to another person [OR OBTAIN A CASH PAYMENT 13 UNDER AS 43.55.028] may apply to the department for a transferable tax credit 14 certificate. A person that is entitled to take a tax credit under (a) or (l) of this  15 section that wishes to obtain a cash payment under AS 43.55.028 may apply to  16 the department for a transferable tax credit certificate. An application under this 17 subsection must be in a form prescribed by the department and must include 18 supporting information and documentation that the department reasonably requires. 19 The department shall grant or deny an application, or grant an application as to a lesser 20 amount than that claimed and deny it as to the excess, not later than 120 days after the 21 latest of (1) March 31 of the year following the calendar year in which the qualified 22 capital expenditure or carried-forward annual loss for which the credit is claimed was 23 incurred; (2) the date the statement required under AS 43.55.030(a) or (e) was filed for 24 the calendar year in which the qualified capital expenditure or carried-forward annual 25 loss for which the credit is claimed was incurred; or (3) the date the application was 26 received by the department. If, based on the information then available to it, the 27 department is reasonably satisfied that the applicant is entitled to a credit, the 28 department shall issue the applicant a transferable tax credit certificate for the amount 29 of the credit. A certificate issued under this subsection does not expire. 30  * Sec. 12. AS 43.55.024(g) is amended to read: 31 (g) A tax credit authorized by (c) of this section may not be applied to reduce 01 a producer's tax liability for any calendar year under AS 43.55.011(e) below zero or  02 the amount calculated under AS 43.55.011(f), if applicable. 03  * Sec. 13. AS 43.55.024(i) is amended to read: 04 (i) A producer may apply against the producer's tax liability for the calendar 05 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under 06 AS 43.55.011(e) that receives a reduction in the gross value at the point of production 07 under AS 43.55.160(f) or (g) and that is produced during a calendar year after 08 December 31, 2013. A tax credit authorized by this subsection may not reduce a 09 producer's tax liability for a calendar year under AS 43.55.011(e) below zero or the  10 amount calculated under AS 43.55.011(f) or (q), as applicable. 11 * Sec. 14. AS 43.55.024(j) is amended to read: 12 (j) A producer may apply against the producer's tax liability for the calendar 13 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 14 each barrel of oil taxable under AS 43.55.011(e) that does not receive a reduction in 15 the gross value at the point of production under AS 43.55.160(f) or (g) and that is 16 produced during a calendar year after December 31, 2013, from leases or properties 17 north of 68 degrees North latitude. A tax credit under this subsection may not reduce a 18 producer's tax liability for a calendar year under AS 43.55.011(e) below the amount 19 calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable 20 oil subject to this subsection produced during a month of the calendar year is 21 (1) $8 for each barrel of taxable oil if the average gross value at the 22 point of production for the month is less than $60 [$80] a barrel; 23 (2) $7 for each barrel of taxable oil if the average gross value at the 24 point of production for the month is greater than or equal to $60 [$80] a barrel, but 25 less than $70 [$90] a barrel; 26 (3) $6 for each barrel of taxable oil if the average gross value at the 27 point of production for the month is greater than or equal to $70 [$90] a barrel, but 28 less than $80 [$100] a barrel; 29 (4) $5 for each barrel of taxable oil if the average gross value at the 30 point of production for the month is greater than or equal to $80 [$100] a barrel, but 31 less than $90 [$110] a barrel; 01 (5) $4 for each barrel of taxable oil if the average gross value at the 02 point of production for the month is greater than or equal to $90 [$110] a barrel, but 03 less than $100 [$120] a barrel; 04 (6) $3 for each barrel of taxable oil if the average gross value at the 05 point of production for the month is greater than or equal to $100 [$120] a barrel, but 06 less than $110 [$130] a barrel; 07 (7) [$2 FOR EACH BARREL OF TAXABLE OIL IF THE 08 AVERAGE GROSS VALUE AT THE POINT OF PRODUCTION FOR THE 09 MONTH IS GREATER THAN OR EQUAL TO $130 A BARREL, BUT LESS 10 THAN $140 A BARREL; 11 (8) $1 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 12 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 13 GREATER THAN OR EQUAL TO $140 A BARREL, BUT LESS THAN $150 A 14 BARREL; 15 (9)] zero if the average gross value at the point of production for the 16 month is greater than or equal to $110 [$150] a barrel. 17  * Sec. 15. AS 43.55.025(g) is amended to read: 18 (g) Except as provided in (q) of this section, an [AN] explorer, other than an 19 entity that is exempt from taxation under this chapter, may transfer, convey, or sell its 20 production tax credit certificate to any person, and any person who receives a 21 production tax credit certificate may also transfer, convey, or sell the certificate. 22  * Sec. 16. AS 43.55.025(i) is amended to read: 23 (i) For a production tax credit under this section, 24 (1) a credit may not be applied to reduce a taxpayer's tax liability for a  25 calendar year under AS 43.55.011(e) below zero or the amount calculated under  26 AS 43.55.011(f), if applicable [FOR A CALENDAR YEAR]; and 27 (2) an amount of the production tax credit in excess of the amount that 28 may be applied for a calendar year under this subsection may be carried forward and 29 applied against the taxpayer's tax liability under AS 43.55.011(e) in one or more later 30 calendar years. 31  * Sec. 17. AS 43.55.025 is amended by adding a new subsection to read: 01 (q) An explorer is eligible for a tax credit of 15 percent of exploration 02 expenditures incurred for drilling that results in a dry hole. A credit under this 03 subsection is eligible for a tax credit certificate issued under (f)(5) of this section; 04 however, a tax credit certificate issued under this subsection may not be transferred 05 under (g) of this section. A credit under this subsection may only be allowed if 06 (1) the explorer does not produce oil or gas in the calendar year in 07 which the credit is earned; 08 (2) all service contracts associated with the exploration activity earning 09 a credit under this subsection are paid in full; 10 (3) the lease on which the dry hole is drilled returns to the state; and 11 (4) the expenditure that is the basis for the credit is not the basis for 12 another credit claimed under this chapter. 13  * Sec. 18. AS 43.55.028(a) is amended to read: 14 (a) The oil and gas tax credit fund is established as a separate fund of the state. 15 The purpose of the fund is to purchase transferable tax credit certificates issued under 16 AS 43.55.023 for a tax credit earned under AS 43.55.023(a) or (l) and production 17 tax credit certificates issued under AS 43.55.025 and to pay refunds and payments 18 claimed under AS 43.20.046, 43.20.047, or 43.20.053. 19  * Sec. 19. AS 43.55.028(e) is amended to read: 20 (e) The department, on the written application of a person to whom a 21 transferable tax credit certificate has been issued under AS 43.55.023(d) or former 22 AS 43.55.023(m) or to whom a production tax credit certificate has been issued under 23 AS 43.55.025(f), may use available money in the oil and gas tax credit fund to 24 purchase, in whole or in part, the certificate. The department may not purchase a total 25 of more than $35,000,000 [$70,000,000] in tax credit certificates from a person in a 26 calendar year. Before purchasing a certificate or part of a certificate, the department 27 shall find that 28 (1) the calendar year of the purchase is not earlier than the first 29 calendar year for which the credit shown on the certificate would otherwise be allowed 30 to be applied against a tax; 31 (2) the application is not the result of the division of a single entity into 01 multiple entities that would reasonably be expected to apply as a single entity if the 02 $35,000,000 [$70,000,000] limitation in this subsection did not exist; 03 (3) the applicant's total tax liability under AS 43.55.011(e), after 04 application of all available tax credits, for the calendar year in which the application is 05 made is zero; 06 (4) the applicant's average daily production of oil and gas taxable 07 under AS 43.55.011(e) during the calendar year preceding the calendar year in which 08 the application is made was not more than 15,000 [50,000] BTU equivalent barrels; 09 and 10 (5) the purchase is consistent with this section and regulations adopted 11 under this section. 12  * Sec. 20. AS 43.55.030(a) is amended to read: 13 (a) A producer that produces oil or gas from a lease or property in the state 14 during a calendar year, whether or not any tax payment is due under AS 43.55.020(a) 15 for that oil or gas, shall file with the department on March 31 of the following year a 16 statement, under oath, in a form prescribed by the department, giving, with other 17 information required under a regulation adopted by the department, the following: 18 (1) a description of each lease or property from which oil or gas was 19 produced, by name, legal description, lease number, or accounting codes assigned by 20 the department; 21 (2) the names of the producer and, if different, the person paying the 22 tax, if any; 23 (3) the gross amount of oil and the gross amount of gas produced from 24 each lease or property, separately identifying the gross amount of gas produced from 25 each oil and gas lease to which an effective election under AS 43.55.014(a) applies, 26 the amount of gas delivered to the state under AS 43.55.014(b), and the percentage of 27 the gross amount of oil and gas owned by the producer; 28 (4) the gross value at the point of production of the oil and of the gas 29 produced from each lease or property owned by the producer and the costs of 30 transportation of the oil and gas; 31 (5) the name of the first purchaser and the price received for the oil and 01 for the gas, unless relieved from this requirement in whole or in part by the 02 department; 03 (6) the producer's qualified capital expenditures, as defined in 04 AS 43.55.023, other lease expenditures under AS 43.55.165, and adjustments or other 05 payments or credits under AS 43.55.170; 06 (7) the production tax values of the oil and gas under AS 43.55.160(a) 07 or of the oil under AS 43.55.160(h), as applicable; 08 (8) any claims for tax credits to be applied; [AND] 09 (9) calculations showing the amounts, if any, that were or are due 10 under AS 43.55.020(a) and interest on any underpayment or overpayment; and  11 (10) for each expenditure that is the basis for a credit claimed  12 under AS 43.55.023 or 43.55.025, a description of the expenditure, a detailed  13 description of the purpose of the expenditure, and a description of the lease or  14 property for which the expenditure was incurred. 15  * Sec. 21. AS 43.55.030(e) is amended to read: 16 (e) An explorer or producer that incurs a lease expenditure under 17 AS 43.55.165 or receives a payment or credit under AS 43.55.170 during a calendar 18 year but does not produce oil or gas from a lease or property in the state during the 19 calendar year shall file with the department, on March 31 of the following year, a 20 statement, under oath, in a form prescribed by the department, giving, with other 21 information required under a regulation adopted by the department, the following: 22 (1) the explorer's or producer's qualified capital expenditures, as 23 defined in AS 43.55.023, other lease expenditures under AS 43.55.165, and 24 adjustments or other payments or credits under AS 43.55.170; [AND] 25 (2) if the explorer or producer receives a payment or credit under 26 AS 43.55.170, calculations showing whether the explorer or producer is liable for a 27 tax under AS 43.55.160(d) or 43.55.170(b) and, if so, the amount; and  28 (3) for each expenditure that is the basis for a credit claimed under  29 this chapter, a description of the expenditure, a detailed description of the  30 purpose of the expenditure, and a description of the lease or property for which  31 the expenditure was incurred. 01  * Sec. 22. AS 43.55.030 is amended by adding a new subsection to read: 02 (g) Notwithstanding AS 43.05.230(a), the department shall annually report the 03 information submitted during the previous calendar year under (a)(10) and (e)(3) of 04 this section to the legislature within 10 days after the convening of each regular 05 legislative session. The department shall deliver the information to the senate secretary 06 and the chief clerk of the house of representatives and notify the legislature that the 07 information is available. 08  * Sec. 23. AS 43.55.150 is amended by adding a new subsection to read: 09 (d) For purposes of calculating the tax under this chapter, the gross value at 10 the point of production may not be less than zero. 11  * Sec. 24. AS 43.55.160(e) is amended to read: 12 (e) Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that 13 would otherwise be deductible by a producer in a calendar year but whose deduction 14 would cause an annual production tax value calculated under (a)(1) or (h) of this 15 section of taxable oil or gas produced during the calendar year to be less than zero 16 may be used to establish a carried-forward annual loss under AS 43.55.023(b) or  17 43.55.165(a)(3). However, the department shall provide by regulation a method to 18 ensure that, for a period for which a producer's tax liability is limited by 19 AS 43.55.011(j), (k), (o), or (p), any adjusted lease expenditures under AS 43.55.165 20 and 43.55.170 that would otherwise be deductible by a producer for that period but 21 whose deduction would cause a production tax value calculated under (a)(1)(C), (D), 22 (E), or (F), or (h)(3) of this section to be less than zero are accounted for as though the 23 adjusted lease expenditures had first been used as deductions in calculating the 24 production tax values of oil or gas subject to any of the limitations under 25 AS 43.55.011(j), (k), (o), or (p) that have positive production tax values so as to 26 reduce the tax liability calculated without regard to the limitation to the maximum 27 amount provided for under the applicable provision of AS 43.55.011(j), (k), (o), or (p). 28 Only the amount of those adjusted lease expenditures remaining after the accounting 29 provided for under this subsection may be used to establish a carried-forward annual 30 loss under AS 43.55.023(b) or 43.55.165(a)(3). In this subsection, "producer" includes 31 "explorer." 01  * Sec. 25. AS 43.55.165(a) is amended to read: 02 (a) Except as provided in (j) and (k) of this section, for purposes of this 03 chapter, a producer's lease expenditures for a calendar year are 04 (1) costs, other than items listed in (e) of this section, that are 05 (A) incurred by the producer during the calendar year after 06 March 31, 2006, to explore for, develop, or produce oil or gas deposits located 07 within the producer's leases or properties in the state or, in the case of land in 08 which the producer does not own an operating right, operating interest, or 09 working interest, to explore for oil or gas deposits within other land in the 10 state; and 11 (B) allowed by the department by regulation, based on the 12 department's determination that the costs satisfy the following three 13 requirements: 14 (i) the costs must be incurred upstream of the point of 15 production of oil and gas; 16 (ii) the costs must be ordinary and necessary costs of 17 exploring for, developing, or producing, as applicable, oil or gas 18 deposits; and 19 (iii) the costs must be direct costs of exploring for, 20 developing, or producing, as applicable, oil or gas deposits; [AND] 21 (2) a reasonable allowance for that calendar year, as determined under 22 regulations adopted by the department, for overhead expenses that are directly related 23 to exploring for, developing, or producing, as applicable, the oil or gas deposits; and  24 (3) 50 percent of the lease expenditures incurred in a previous  25 year, subject to (m) and (n) of this section, that  26 (A) met the requirements of AS 43.55.160(e) in the year that  27 the lease expenditures were incurred;  28 (B) have not been deducted in the determination of the  29 production tax value of oil and gas under AS 43.55.160(a) in a previous  30 calendar year;  31 (C) were not the basis of a credit under this title; and  01 (D) were incurred to explore for, develop, or produce an oil  02 or gas deposit located north of 68 degrees North latitude. 03  * Sec. 26. AS 43.55.165 is amended by adding new subsections to read: 04 (m) After the 50 percent reduction under (a)(3) of this section, lease 05 expenditures carried forward under (a)(3) of this section shall accrue interest at seven 06 percentage points above the annual rate charged member banks for advances by the 07 12th Federal Reserve District as of the first day of the calendar year, compounded 08 annually. Interest under this subsection begins to accrue on January 1 of the calendar 09 year immediately following the calendar year in which the lease expenditures were 10 incurred and no longer accrues on December 31 of the calendar year immediately 11 preceding the calendar year in which the carried-forward lease expenditures were 12 applied. Interest accrued under this subsection has no value other than as a lease 13 expenditure under this section. Interest may not accrue 14 (1) for a partial calendar year; or 15 (2) for more than seven calendar years. 16 (n) The Department of Natural Resources shall adopt regulations that require 17 the pre-approval of lease expenditures carried forward under (a)(3) of this section. 18 Regulations under this subsection may add additional requirements for or restrictions 19 on the ability of a producer or explorer to carry forward a lease expenditure under 20 (a)(3) of this section. For a lease expenditure to qualify under (a)(3) of this section, a 21 producer or explorer shall provide to the Department of Natural Resources the 22 information necessary to determine whether a lease expenditure qualifies to be carried 23 forward under regulations adopted under this subsection. 24  * Sec. 27. AS 43.55.028(g)(3) and 43.55.029 are repealed. 25 * Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 LEGISLATIVE WORKING GROUP. (a) A legislative working group is established 28 to analyze the Cook Inlet fiscal regime for oil and gas, review the state's tax structure and 29 rates on oil and gas produced south of 68 degrees North latitude, recommend changes to the 30 legislature for consideration during the Second Regular Session of the Thirtieth Alaska State 31 Legislature, and develop terms for a comprehensive fiscal regime, including 01 (1) a tax structure that accounts for the unique circumstances for each oil and 02 gas producing area south of 68 degrees North latitude; 03 (2) incentives other than direct monetary support from the state for the 04 exploration, development, and production of oil and gas south of 68 degrees North latitude; 05 (3) consideration of the competitiveness of the area south of 68 degrees North 06 latitude to attract new oil and gas development; 07 (4) consideration of the unique market considerations of the Cook Inlet 08 sedimentary basin and the need to support energy supply security for communities in 09 Southcentral Alaska; 10 (5) alternative means of state support for the exploration, development, and 11 production of oil and gas in the Cook Inlet sedimentary basin, including loan guarantees or 12 other financial support through the Alaska Industrial Development and Export Authority, or 13 other state corporation or entity; 14 (6) the applicability of the recommended tax structure to gas currently subject 15 to AS 43.55.011(o). 16 (b) The recommended changes under (a) of this section may not include refundable or 17 deductible tax credits or carried-forward lease expenditures. 18 (c) The working group consists of 19 (1) two co-chairs, one of whom is a member of the house of representatives 20 appointed by the speaker of the house of representatives, and one of whom is a member of the 21 senate appointed by the president of the senate; and 22 (2) members appointed by the co-chairs; members must be legislators and 23 must include members of the majority and minority caucuses. 24 (d) The co-chairs of the working group may form an advisory group to the working 25 group, composed of members who are not legislators and who have expertise and skills to 26 assist in the review and development of a new plan for the tax structure and rates on oil and 27 gas produced south of 68 degrees North latitude. The members of an advisory group may 28 include commissioners or employees of state departments, members of the oil and gas 29 industry or trade associations, and economists. 30 (e) The working group may be supported by legislative consultants under contract 31 through the Legislative Budget and Audit Committee. 01  * Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. (a) The additional limitations on the use of tax credits in 04 AS 43.55.011(q) and (r), added by sec. 7 of this Act, AS 43.55.023(c), as amended by sec. 10 05 of this Act, AS 43.55.024(g), as amended by sec. 12 of this Act, AS 43.55.024(i), as amended 06 by sec. 13 of this Act, and AS 43.55.025(i), as amended by sec. 16 of this Act, and the 07 adjustment to the calculation of a tax payment under AS 43.55.020(a)(11), added by sec. 8 of 08 this Act, apply to credits applied to reduce a tax liability for a tax year starting on or after the 09 effective date of secs. 7, 8, 10, 12, 13, and 16 of this Act. 10 (b) AS 43.55.023(b), as amended by sec. 9 of this Act, applies to lease expenditures 11 incurred on or after the effective date of sec. 9 of this Act. 12 (c) The repeal of AS 43.55.029 by sec. 27 of this Act applies to a credit applied for on 13 or after the effective date of sec. 27 of this Act. 14  * Sec. 30. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION: CARRIED-FORWARD LOSSES AND LEASE EXPENDITURES. 17 (a) Notwithstanding AS 43.55.023(d), as amended by sec. 11 of this Act, and 18 AS 43.55.028(a), as amended by sec. 18 of this Act, the Department of Revenue may 19 purchase a transferable tax credit certificate that was issued under AS 43.55.023(d) for a 20 credit earned under AS 43.55.023(b) before the effective date of secs. 11 and 18 of this Act, 21 under AS 43.55.023(d) and 43.55.028(a), as those subsections read on the day before the 22 effective date of secs. 11 and 18 of this Act. 23 (b) AS 43.55.165(a)(3) and 43.55.165(m) and (n), added by secs. 25 and 26 of this 24 Act, apply to a lease expenditure incurred on or after the effective date of secs. 25 and 26 of 25 this Act. 26  * Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: ASSIGNMENT OF TAX CREDIT CERTIFICATES. 29 Notwithstanding the repeal of AS 43.55.029 by sec. 27 of this Act, the Department of 30 Revenue may continue to apply and enforce AS 43.55.029 as that section read the day before 31 the effective date of sec. 27 of this Act for a credit applied for before the effective date of sec. 01 27 of this Act. 02  * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 TRANSITION: PAYMENT OF TAX; FILING. (a) Notwithstanding AS 43.55.020(a), 05 as amended by sec. 8 of this Act, a person subject to tax under AS 43.55 that is required to 06 make one or more installment payments of estimated tax or other payments of tax under 07 AS 43.55.020 for production before the effective date of sec. 8 of this Act shall pay the tax 08 under AS 43.55.020, as that section read on the day before the effective date of sec. 8 of this 09 Act. 10 (b) The Department of Revenue may continue to apply and enforce AS 43.55.020(a), 11 as that subsection read on the day before the effective date of sec. 8 of this Act, for a tax or 12 installment payment for production before the effective date of sec. 8 of this Act. 13  * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 RETROACTIVITY. Section 2 of this Act is retroactive to January 1, 2017. 16  * Sec. 34. Sections 1, 2, 28, and 33 of this Act take effect immediately under 17 AS 01.10.070(c). 18  * Sec. 35. Except as provided in sec. 34 of this Act, this Act takes effect January 1, 2018.