CSSB 203(RES): "An Act relating to the regulation of a gas storage facility by the Regulatory Commission of Alaska; relating to a tax credit for a facility to store Cook Inlet gas for sale and delivery in the state; and providing for an effective date."
00 CS FOR SENATE BILL NO. 203(RES) 01 "An Act relating to the regulation of a gas storage facility by the Regulatory 02 Commission of Alaska; relating to a tax credit for a facility to store Cook Inlet gas for 03 sale and delivery in the state; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 42.05.990(4) is amended to read: 06 (4) "public utility" or "utility" includes every corporation whether 07 public, cooperative, or otherwise, company, individual, or association of individuals, 08 their lessees, trustees, or receivers appointed by a court, that owns, operates, manages, 09 or controls any plant, pipeline, or system for 10 (A) furnishing, by generation, transmission, or distribution, 11 electrical service to the public for compensation; 12 (B) furnishing telecommunications service to the public for 13 compensation; 14 (C) furnishing water, steam, or sewer service to the public for
01 compensation; 02 (D) furnishing by transmission or distribution of natural or 03 manufactured gas to the public for compensation; 04 (E) furnishing for distribution or by distribution petroleum or 05 petroleum products to the public for compensation when the consumer has no 06 alternative in the choice of supplier of a comparable product and service at an 07 equal or lesser price; 08 (F) furnishing collection and disposal service of garbage, 09 refuse, trash, or other waste material to the public for compensation; 10 (G) furnishing a tank, depleted reservoir, injection well for 11 gas storage permitted under AS 31.05, or other structure in the state for 12 the storage of gas that is designated to be sold, delivered, or used in the 13 state by a public utility providing the services described in (A) or (D) of 14 this paragraph if an expenditure incurred for the tank, depleted reservoir, 15 injection well for gas storage permitted under AS 31.05, or other structure 16 was the basis for a tax credit under AS 43.20.046; 17 * Sec. 2. AS 43.20 is amended by adding a new section to article 1 to read: 18 Sec. 43.20.046. Cook Inlet gas storage facility tax credit. (a) A taxpayer that 19 is an owner of a Cook Inlet gas storage facility may apply as a credit against the state 20 tax liability that may be imposed on the taxpayer under this chapter, for a tax year 21 beginning after December 31, 2009, 20 percent of the taxpayer's qualified capital 22 investment in a Cook Inlet gas storage facility. The credit is subject to the terms and 23 conditions of this section and is in addition to any other credit authorized to the 24 taxpayer by this chapter. The credit under this section is applicable only to the first 25 purchase, construction, or acquisition of a Cook Inlet gas storage facility after 26 December 31, 2009. 27 (b) A qualified capital investment for the investment credit under (a) of this 28 section is 29 (1) an expenditure incurred under a binding payment agreement 30 entered into after December 31, 2009, and before January 1, 2013, made for the direct 31 cost of purchasing, constructing, or otherwise acquiring an ownership interest in the
01 real property or tangible personal property used in this state for a Cook Inlet gas 02 storage facility that was not in operation before January 1, 2010; in this paragraph, 03 "property" includes 04 (A) property that is placed in use under a capitalized lease or an 05 operating lease; and 06 (B) machinery, appliances, supplies, and equipment directly 07 related to the storage of gas produced from the Cook Inlet sedimentary basin 08 and designated for sale and delivery in the state; and 09 (2) the cost of cushion gas acquired after December 31, 2009, and 10 before January 1, 2013, that is required for a Cook Inlet gas storage facility to 11 function. 12 (c) The credit for each tax year allowed under (a) of this section may not 13 exceed 50 percent of the taxpayer's total tax liability under this chapter. An unused 14 portion of the credit for the tax year 15 (1) may be carried forward into one or more of the following tax years, 16 except that the unused credit from one tax year may not be carried forward for more 17 than five following tax years; 18 (2) shall be applied to the taxpayer's tax liability under this chapter 19 during the following tax year before allowance of a credit allowed under (a) of this 20 section for that following tax year. 21 (d) A credit may not be taken against a tax due under this chapter before the 22 gas storage facility is ready to receive gas for storage. 23 (e) A taxpayer entitled to a credit under this section forfeits the credit to which 24 the taxpayer is entitled during the tax year and any carryover of it under (c) of this 25 section, but does not forfeit the portion of the credit that accrued in a previous taxable 26 year that may be carried over under (c) of this section, if the taxpayer 27 (1) disposes of the qualified capital investment; 28 (2) takes the qualified investment out of service; or 29 (3) fails to use the Cook Inlet gas storage facility primarily for the 30 storage of gas for sale and delivery in the state. 31 (f) In this section,
01 (1) "Cook Inlet gas storage facility" means a tank, depleted reservoir, 02 injection well for gas storage permitted under AS 31.05, or other structure in the state 03 for the storage of gas that is produced from the Cook Inlet sedimentary basin and 04 designated for sale and delivery in the state, and includes machinery, supplies, and 05 equipment directly related to and necessary for filling and withdrawing gas from the 06 structures holding the gas for storage in the facility; 07 (2) "Cook Inlet sedimentary basin" has the meaning given in 08 AS 43.55.900; 09 (3) "cushion gas" means gas that is needed to pressurize the storage 10 facility and that allows the storage facility to function. 11 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).