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Enrolled SB 23: Relating to taxes and tax credits; exempting certain small businesses from the corporate income tax; relating to oil and gas production taxes; relating to tax credits for oil and gas exploration; relating to tax credits and cost savings for liquefied natural gas storage and reducing costs to consumers; relating to an exemption from rental payments on state land for certain liquefied natural gas facilities; relating to transferable film production tax credits and film production tax credit certificates; relating to the taxes against which a film production tax credit may be applied; transferring the film office to the Department of Revenue and relating to that office; establishing the Alaska Film Incentive Review Commission; establishing a film production promotion program; relating to the amount of credit that may be awarded for compensation to producers, directors, writers, and actors who are not residents; providing for a fee to be paid at the time an application for eligibility for the film production tax credit is filed; providing a one-time credit for the first episodic scripted television production in the state; requiring the legislative audit division to audit the Alaska film production incentive program; providing for an effective date by repealing the effective dates of secs. 3 and 4, ch. 63, SLA 2008; and providing for an effective date.

00 Enrolled SB 23                                                                                                          
01 Relating to taxes and tax credits; exempting certain small businesses from the corporate                                
02 income tax; relating to oil and gas production taxes; relating to tax credits for oil and gas                           
03 exploration; relating to tax credits and cost savings for liquefied natural gas storage and                             
04 reducing costs to consumers; relating to an exemption from rental payments on state land for                            
05 certain liquefied natural gas facilities; relating to transferable film production tax credits and                      
06 film production tax credit certificates; relating to the taxes against which a film production tax                      
07 credit may be applied; transferring the film office to the Department of Revenue and relating                           
08 to that office; establishing the Alaska Film Incentive Review Commission; establishing a film                           
09 production promotion program; relating to the amount of credit that may be awarded for                                  
10 compensation to producers, directors, writers, and actors who are not residents; providing for                          
11 a fee to be paid at the time an application for eligibility for the film production tax credit is                       
12 filed; providing a one-time credit for the first episodic scripted television production in the                         
01 state; requiring the legislative audit division to audit the Alaska film production incentive                           
02 program; providing for an effective date by repealing the effective dates of secs. 3 and 4, ch.                         
03 63, SLA 2008; and providing for an effective date.                                                                      
04                           _______________                                                                               
05    * Section 1. AS 24.20.271 is amended to read:                                                                      
06            Sec. 24.20.271. Powers and duties. The legislative audit division shall                                    
07                 (1)  conduct a performance post-audit of boards and commissions                                         
08       designated in AS 44.66.010 and of those programs and activities of agencies subject to                            
09       termination as determined in the manner set out in AS 44.66.020 and 44.66.030, and                                
10       make the audit, together with a written report, available to the legislature not later than                       
11       the first day of the regular session of the legislature convening in each year set out                            
12       with reference to boards, commissions, or agency programs whose activities are                                    
13       subject to termination as prescribed in AS 44.66; the division shall notify the                                   
14       legislature that the audit and report are available;                                                              
15                 (2)  audit at least once every three years the books and accounts of all                                
16       custodians of public funds and all disbursing officers of the state;                                              
17                 (3)  at the direction of the Legislative Budget and Audit Committee,                                    
18       conduct performance post-audits on any agency of state government;                                                
19                 (4)  cooperate with state agencies by offering advice and assistance as                                 
20       requested in establishing or improving the accounting systems used by state agencies;                             
21                 (5)  require the assistance and cooperation of all state officials and                                  
22       other state employees in the inspection, examination, and audit of state agency books                             
23       and accounts;                                                                                                     
24                 (6)  have access at all times to the books, accounts, reports, or other                                 
25       records, whether confidential or not, of every state agency;                                                      
26                 (7)  ascertain, as necessary for audit verification, the amount of agency                               
27       funds on deposit in any bank as shown on the books of the bank; no bank may be held                               
28       liable for making information required under this paragraph available to the legislative                          
29       audit division;                                                                                                   
30                 (8)  complete studies and prepare reports, memoranda, or other                                          
01       materials as directed by the Legislative Budget and Audit Committee;                                              
02                 (9)  have direct access to any information related to the management of                                 
03       the University of Alaska and have the same right of access as exists with respect to                              
04       every other state agency;                                                                                         
05                 (10)  conduct an audit every two years of information found in the                                      
06       annual reports required under AS 42.05.211 and AS 42.06.220 regarding compliance                                  
07       by the Regulatory Commission of Alaska with the requirements of AS 42.05.175(a) -                                 
08       (e) and of the timeline extensions made by the commission under AS 42.05.175(f),                                  
09       and of other performance measures adopted by the commission;                                                  
10                 (11)  conduct audits of the Alaska film production incentive                                        
11       program (AS 44.25.100 - 44.25.190) and make the audits available to the                                       
12       legislature on the first day of the regular session of the legislature in 2015, 2017,                         
13       and 2021.                                                                                                     
14    * Sec. 2. AS 38.05 is amended by adding a new section to read:                                                     
15            Sec. 38.05.096. Exemption from rental payments on land leased for certain                                  
16       liquefied natural gas storage facilities. (a) A person leasing state land for a liquefied                       
17       natural gas storage facility other than a gas storage facility subject to AS 38.05.180(u)                         
18       may request an exemption from lease payments as provided in this section. The                                     
19       exemption is applicable for the periods described in (b) of this section.                                         
20            (b)  The exemption is available for the calendar year in which the liquefied                                 
21       natural gas storage facility commences commercial operation and for each of the nine                              
22       calendar years immediately following the first year of commercial operation.                                      
23       However, an exemption is not applicable for the calendar year after the facility ceases                           
24       commercial operation or for any subsequent calendar year.                                                         
25            (c)  The lessee shall provide the director with any information the director                                 
26       requests to determine whether the lessee qualifies for the exemption.                                             
27            (d)  Information related to state land leased for a liquefied natural gas storage                            
28       facility qualifying for the exemption in this section is public information and may be                            
29       furnished to the Regulatory Commission of Alaska. On request, the director shall                                  
30       provide the name of each person using state land leased for a liquefied natural gas                               
31       storage facility, the years for which an exemption was granted, and the amount of the                             
01       exemption.                                                                                                        
02            (e)  A person receiving an exemption for a payment under this section that                                   
03       contracts to store liquefied natural gas for a utility regulated under AS 42.05 shall                             
04       reduce the storage price to reflect the value of the exemption.                                                   
05            (f)  In this section,                                                                                        
06                 (1)  "ceases commercial operation" and "commences commercial                                            
07       operation" have the meanings given in AS 31.05.032;                                                               
08                 (2)  "liquefied natural gas storage facility" has the meaning given in                                  
09       AS 42.05.990.                                                                                                     
10    * Sec. 3. AS 42.05.381(k) is amended to read:                                                                      
11            (k)  The cost to the utility of storing gas in a gas storage facility or storing                         
12       liquefied natural gas in a liquefied natural gas storage facility that is allowed in                          
13       determining a just and reasonable rate shall reflect the reduction in cost attributable to                        
14       any exemption from a payment due under AS 38.05.096 or 38.05.180(u), as                                       
15       applicable, [AS 38.05.180(u)] and the value of a tax credit that the owner of the gas                         
16       storage facility received under AS 43.20.046 or 43.20.047, as applicable. The                                 
17       commission may request the (1) commissioner of natural resources to report the value                              
18       of the exemption from a payment due under AS 38.05.096 or 38.05.180(u), as                                    
19       applicable, [AS 38.05.180(u)] that the gas storage facility received; and (2)                                 
20       commissioner of revenue to report information on the amount of tax credits claimed                                
21       under AS 43.20.046 and 43.20.047, as applicable, for the gas storage facility or                          
22       liquefied natural gas storage facility. In this subsection,                                                   
23                 (1)  "gas storage facility" has the meaning given in AS 31.05.032;                              
24                 (2)  "liquefied natural gas storage facility" has the meaning given                                 
25       in AS 42.05.990.                                                                                              
26    * Sec. 4. AS 42.05.990(5) is amended to read:                                                                      
27                 (5)  "public utility" or "utility" includes every corporation whether                                   
28       public, cooperative, or otherwise, company, individual, or association of individuals,                            
29       their lessees, trustees, or receivers appointed by a court, that owns, operates, manages,                         
30       or controls any plant, pipeline, or system for                                                                    
31                      (A)  furnishing, by generation, transmission, or distribution,                                     
01            electrical service to the public for compensation;                                                           
02                      (B)  furnishing telecommunications service to the public for                                       
03            compensation;                                                                                                
04                      (C)  furnishing water, steam, or sewer service to the public for                                   
05            compensation;                                                                                                
06                      (D)  furnishing by transmission or distribution of natural or                                      
07            manufactured gas to the public for compensation;                                                             
08                      (E)  furnishing for distribution or by distribution petroleum or                                   
09            petroleum products to the public for compensation when the consumer has no                                   
10            alternative in the choice of supplier of a comparable product and service at an                              
11            equal or lesser price;                                                                                       
12                      (F)  furnishing collection and disposal service of garbage,                                        
13            refuse, trash, or other waste material to the public for compensation;                                       
14                      (G)  furnishing the service of natural gas storage to the public                                   
15            for compensation;                                                                                            
16                      (H)  furnishing the service of liquefied natural gas storage to                                
17            the public for compensation;                                                                             
18    * Sec. 5. AS 42.05.990 is amended by adding new paragraphs to read:                                                
19                 (11)  "liquefied natural gas storage facility" means a facility that                                    
20       receives natural gas volumes in a liquid or gaseous state from customers, holds the gas                           
21       volumes in a liquid state in a reservoir, and delivers the gas volumes in a liquid or                             
22       gaseous state to the customer; in this paragraph, "facility" includes                                             
23                      (A)  all parts of the facility from the point at which the natural                                 
24            gas volumes are received by the facility from the customer to the point at                                   
25            which the natural gas volumes are delivered by the facility to the customer;                                 
26                      (B)  a facility consisting of a reservoir, either underground or                                   
27            aboveground, and one or more of the following components of the facility:                                    
28                           (i)  pipe;                                                                                    
29                           (ii)  compressor stations;                                                                    
30                           (iii)  station equipment;                                                                     
31                           (iv)  liquefaction plant or facility;                                                         
01                           (v)  gasification plant or facility;                                                          
02                           (vi)  on-site or remote monitoring, supervision, and                                          
03                 control facilities;                                                                                     
04                           (vii)  gas processing plants and gas treatment plants, but                                    
05                 not including a manufacturing plant or facility;                                                        
06                           (viii)  other equipment necessary to receive, place into                                      
07                 the reservoir, monitor, remove from the reservoir, process, and deliver                                 
08                 natural gas;                                                                                            
09                 (12)  "reservoir" means a receptacle or chamber, either natural or man-                                 
10       made, holding a gas or liquid, and includes a tank or a depleted or nearly depleted                               
11       pool;                                                                                                             
12                 (13)  "service of liquefied natural gas storage" means the operation of a                               
13       liquefied natural gas storage facility; "service of liquefied natural gas storage" does                           
14       not include the storage of liquefied natural gas                                                                  
15                      (A)  owned by or contractually obligated to the owner, operator,                                   
16            or manager of the liquefied natural gas storage facility;                                                    
17                      (B)  that is incidental to the production or sale of natural gas to                                
18            one or more third-party customers; or                                                                        
19                      (C)  for which the price of storage is not separately itemized.                                    
20    * Sec. 6. AS 43.20.012 is amended to read:                                                                         
21            Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax                               
22       imposed by this chapter does not                                                                                  
23                 (1)  apply to an individual;                                                                        
24                 (2)  apply to a fiduciary; or                                                                       
25                 (3)  for a tax year beginning after December 31, 2012, apply to an                                  
26       Alaska corporation that is a qualified small business and that meets the active                               
27       business requirement in 26 U.S.C. 1202(e) as that subsection read on January 1,                               
28       2012 [APPLY TO INDIVIDUALS OR TO FIDUCIARIES].                                                                
29            (b)  An [HOWEVER, AN] individual may file a return under this chapter in                                 
30       order to receive a tax credit under AS 43.20.013.                                                                 
31    * Sec. 7. AS 43.20.012 is amended by adding new subsections to read:                                               
01            (c)  For the purposes of (a)(3) of this section,                                                             
02                 (1)  whether a corporation qualifies under (a)(3) of this section shall be                              
03       determined on the first day of the tax year for which the corporation claims it qualifies                         
04       under (a)(3) of this section;                                                                                     
05                 (2)  all corporations that are members of the same parent-subsidiary                                    
06       controlled group shall be treated as one corporation.                                                             
07            (d)  In this section,                                                                                        
08                 (1)  "Alaska corporation" means a corporation that has been                                             
09       incorporated in the state or is authorized to do business in the state;                                           
10                 (2)  "parent-subsidiary controlled group" has the meaning given in 26                                   
11       U.S.C. 1202 as that section read on January 1, 2012;                                                              
12                 (3)  "qualified small business" has the meaning given in 26 U.S.C. 1202                                 
13       as that section read on January 1, 2012, and does not include a construction,                                     
14       transportation, utility, or fisheries business.                                                                   
15    * Sec. 8. AS 43.20.012, as amended by secs. 6 and 7 of this Act, is repealed and reenacted                         
16 to read:                                                                                                                
17            Sec. 43.20.012. Limitation on application of chapter; credits. The tax                                     
18       imposed by this chapter does not apply to individuals or to fiduciaries. However, an                              
19       individual may file a return under this chapter to receive a tax credit under                                     
20       AS 43.20.013.                                                                                                     
21    * Sec. 9. AS 43.20 is amended by adding a new section to article 1 to read:                                        
22            Sec. 43.20.047. Liquefied natural gas storage facility tax credit. (a) A                                   
23       person that is an owner of a liquefied natural gas storage facility described in (b) of                           
24       this section that commences commercial operation before January 1, 2020, may apply                                
25       a refundable credit against a tax liability that may be imposed on the person under this                          
26       chapter or receive the amount of the credit in the form of a payment for the taxable                              
27       year in which the liquefied natural gas storage facility commences commercial                                     
28       operation. The tax credit or payment under this section may not exceed the lesser of                              
29       $15,000,000 or 50 percent of the costs incurred to establish or expand the liquefied                              
30       natural gas storage facility. The tax credit in this section is in addition to any other                          
31       credit under this chapter for which the person is eligible.                                                       
01            (b)  To qualify for the credit in this section, a liquefied natural gas storage                              
02       facility                                                                                                          
03                 (1)  must have a liquefied natural gas storage volume of not less than                                  
04       25,000 gallons of liquefied natural gas, or, if the credit is claimed for an expansion, the                       
05       expansion must have increased the capacity of an existing liquefied natural gas storage                           
06       facility by more than 25,000 gallons;                                                                             
07                 (2)  may not have been in operation as a liquefied natural gas storage                                  
08       facility before January 1, 2011, unless the tax credit in this section is based on the                            
09       expansion of the liquefied natural gas storage facility after December 31, 2011;                                  
10                 (3)  must be regulated under AS 42.05 as a utility and be available to                                  
11       furnish the service of liquefied natural gas storage to customers, utilities, or industrial                       
12       facilities; in this paragraph, "service of liquefied natural gas storage" has the meaning                         
13       given in AS 42.05.990;                                                                                            
14                 (4)  if located on state land and leased or subject to a lease under                                    
15       AS 38.05, must be in compliance with the terms of the lease; and                                                  
16                 (5)  must have commenced commercial operation on or before the date                                     
17       the person takes a credit under (a) of this section or applies for a payment under (a) of                         
18       this section.                                                                                                     
19            (c)  To claim the credit or request a payment, a person shall submit to the                                  
20       department a certification of the capacity of the liquefied natural gas storage facility                          
21       measured in gallons or the capacity of an expansion to an existing liquefied natural gas                          
22       storage facility measured in gallons, the date that the liquefied natural gas storage                             
23       facility commenced commercial operation, the date that any expansion to the liquefied                             
24       natural gas storage facility commenced commercial operation, and other information                                
25       required by the department.                                                                                       
26            (d)  A person applying the credit under this section against a liability under this                          
27       chapter shall claim the credit on the person's return. A person entitled to a tax credit                          
28       under this section that is greater than the person's tax liability under this chapter may                         
29       request a refund or payment in the amount of the unused portion of the tax credit.                                
30            (e)  The department may use money available in the oil and gas tax credit fund                               
31       established in AS 43.55.028 to make a refund or payment under (d) of this section in                              
01       whole or in part if the department finds that (1) the claimant does not have an                                   
02       outstanding liability to the state for unpaid delinquent taxes under this title; and (2)                          
03       after application of all available tax credits, the claimant's total tax liability under this                     
04       chapter for the calendar year in which the claim is made is zero. In this subsection,                             
05       "unpaid delinquent tax" means an amount of tax for which the department has issued                                
06       an assessment that has not been paid and, if contested, has not been finally resolved in                          
07       the taxpayer's favor.                                                                                             
08            (f)  For the purpose of determining the amount of the credit under this section,                             
09       the costs incurred to establish a liquefied natural gas storage facility or to expand a                           
10       liquefied natural gas storage facility shall be submitted to the department with                                  
11       verification by an independent certified public accountant licensed in the state. The                             
12       volume of working liquefied natural gas storage or volume of the expansion to an                                  
13       existing liquefied natural gas storage facility shall be verified by a professional                               
14       engineer licensed in the state with relevant experience.                                                          
15            (g)  A person may not receive a credit under this section for the acquisition of a                           
16       liquefied natural gas storage facility for which a credit has been taken under this                               
17       section.                                                                                                          
18            (h)  If the liquefied natural gas storage facility for which a credit was received                           
19       under this section ceases commercial operation during the nine calendar years                                     
20       immediately following the calendar year in which the liquefied natural gas storage                                
21       facility commences commercial operation, the tax liability under this chapter of the                              
22       person who claimed the credit shall be increased, and a person not subject to the tax                             
23       under this chapter that received a payment under (d) and (e) of this section shall be                             
24       liable to the state in the amount determined in this subsection. The amount of the                                
25       increase in tax liability or liability to the state                                                               
26                 (1)  for a person subject to the tax under this chapter, shall be                                       
27       determined and assessed for the taxable year in which the liquefied natural gas storage                           
28       facility ceases commercial operation, regardless of whether the liquefied natural gas                             
29       storage facility subsequently resumes commercial operation;                                                       
30                 (2)  for a person not subject to the tax due under this chapter, shall be                               
31       determined and assessed as of December 31 of the calendar year in which the liquefied                             
01       natural gas storage facility ceases commercial operation, regardless of whether the                               
02       liquefied natural gas storage facility subsequently resumes commercial operation; and                             
03                 (3)  is equal to the total amount of the credit taken or received as a                                  
04       payment under (d) of this section, as applicable, multiplied by a fraction, the                                   
05       numerator of which is the difference between 10 and the number of calendar years for                              
06       which the liquefied natural gas storage facility was eligible for a tax credit under this                         
07       section and the denominator of which is 10.                                                                       
08            (i)  The issuance of a refund under this section does not limit the department's                             
09       ability to later audit or adjust the claim if the department determines, as a result of the                       
10       audit, that the person that claimed the credit was not entitled to the amount of the                              
11       credit. The tax liability of the person receiving the credit under this section is                                
12       increased by the amount of the credit that exceeds that to which the person was                                   
13       entitled. If the tax liability is increased under this subsection, the increase bears                             
14       interest at the rate set by AS 43.05.225 from the date the refund was issued.                                     
15            (j)  A person claiming a tax credit under this section for a liquefied natural gas                           
16       storage facility that ceases commercial operation within nine calendar years                                      
17       immediately following the calendar year in which the liquefied natural gas storage                                
18       facility commences commercial operation shall notify the department in writing of the                             
19       date the liquefied natural gas storage facility ceased commercial operation. The notice                           
20       must be filed with the return for the taxable year in which the liquefied natural gas                             
21       storage facility ceases commercial operation.                                                                     
22            (k)  A refund under this section does not bear interest.                                                     
23            (l)  In this section,                                                                                        
24                 (1)  "ceases commercial operation" means that the liquefied natural gas                                 
25       storage facility fails to add or withdraw 20 percent or more of its working capacity of                           
26       liquefied natural gas during a calendar year after the calendar year in which the                                 
27       liquefied natural gas storage facility commences commercial operation;                                            
28                 (2)  "commences commercial operation" means the first input of                                          
29       liquefied natural gas into a liquefied natural gas storage facility for purposes other than                       
30       testing;                                                                                                          
31                 (3)  "liquefied natural gas storage facility" has the meaning given in                                  
01       AS 42.05.990.                                                                                                     
02    * Sec. 10. AS 43.55.011(e) is amended to read:                                                                     
03            (e)  There is levied on the producer of oil or gas a tax for all oil and gas                                 
04       produced each calendar year from each lease or property in the state, less any oil and                            
05       gas the ownership or right to which is exempt from taxation or constitutes a                                      
06       landowner's royalty interest. Except as otherwise provided under (f), (j), (k), [AND]                             
07       (o), and (p) of this section, the tax is equal to the sum of                                                  
08                 (1)  the annual production tax value of the taxable oil and gas as                                      
09       calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and                                                 
10                 (2)  the sum, over all months of the calendar year, of the tax amounts                                  
11       determined under (g) of this section.                                                                             
12    * Sec. 11. AS 43.55.011 is amended by adding a new subsection to read:                                             
13            (p)  For the seven years immediately following the commencement of                                           
14       commercial production of oil or gas produced from leases or properties in the state                               
15       that are outside the Cook Inlet sedimentary basin and that do not include land located                            
16       north of 68 degrees North latitude, where that commercial production began after                                  
17       December 31, 2012, and before January 1, 2022, the levy of tax under (e) of this                                  
18       section for oil and gas may not exceed four percent of the gross value at the point of                            
19       production.                                                                                                       
20    * Sec. 12. AS 43.55.020(a) is amended to read:                                                                     
21            (a)  For a calendar year, a producer subject to tax under AS 43.55.011(e) - (i)                              
22       or (p) shall pay the tax as follows:                                                                          
23                 (1)  an installment payment of the estimated tax levied by                                              
24       AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each                                
25       month of the calendar year on the last day of the following month; except as otherwise                            
26       provided under (2) of this subsection, the amount of the installment payment is the                               
27       sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be                          
28       applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount                           
29       of the installment payment may not be less than zero:                                                             
30                      (A)  for oil and gas produced from leases or properties in the                                     
31            state outside the Cook Inlet sedimentary basin but not subject to                                            
01            AS 43.55.011(o) or (p), other than leases or properties subject to                                       
02            AS 43.55.011(f), the greater of                                                                              
03                           (i)  zero; or                                                                                 
04                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
05                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
06                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
07                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
08                 deductible for the leases or properties under AS 43.55.160 from the                                     
09                 gross value at the point of production of the oil and gas produced from                                 
10                 the leases or properties during the month for which the installment                                     
11                 payment is calculated;                                                                                  
12                      (B)  for oil and gas produced from leases or properties subject                                    
13            to AS 43.55.011(f), the greatest of                                                                          
14                           (i)  zero;                                                                                    
15                           (ii)  zero percent, one percent, two percent, three                                           
16                 percent, or four percent, as applicable, of the gross value at the point of                             
17                 production of the oil and gas produced from all leases or properties                                    
18                 during the month for which the installment payment is calculated; or                                    
19                           (iii)  the sum of 25 percent and the tax rate calculated for                                  
20                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
21                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
22                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
23                 deductible for those leases or properties under AS 43.55.160 from the                                   
24                 gross value at the point of production of the oil and gas produced from                                 
25                 those leases or properties during the month for which the installment                                   
26                 payment is calculated;                                                                                  
27                      (C)  for oil and gas produced from each lease or property                                          
28            subject to AS 43.55.011(j), (k), [OR] (o), or (p), the greater of                                        
29                           (i)  zero; or                                                                                 
30                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
31                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
01                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
02                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
03                 deductible under AS 43.55.160 for oil or gas, respectively, produced                                    
04                 from the lease or property from the gross value at the point of                                         
05                 production of the oil or gas, respectively, produced from the lease or                                  
06                 property during the month for which the installment payment is                                          
07                 calculated;                                                                                             
08                 (2)  an amount calculated under (1)(C) of this subsection for oil or gas                                
09       produced from a lease or property                                                                                 
10                      (A)  subject to AS 43.55.011(j), (k), or (o) may not exceed the                                
11            product obtained by carrying out the calculation set out in AS 43.55.011(j)(1)                               
12            or (2) or 43.55.011(o), as applicable, for gas or set out in AS 43.55.011(k)(1)                              
13            or (2), as applicable, for oil, but substituting in AS 43.55.011(j)(1)(A) or (2)(A)                          
14            or 43.55.011(o), as applicable, the amount of taxable gas produced during the                                
15            month for the amount of taxable gas produced during the calendar year and                                    
16            substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the amount of                                
17            taxable oil produced during the month for the amount of taxable oil produced                                 
18            during the calendar year;                                                                                    
19                      (B)  subject to AS 43.55.011(p) may not exceed four percent                                    
20            of the gross value at the point of production of the oil or gas;                                         
21                 (3)  an installment payment of the estimated tax levied by                                              
22       AS 43.55.011(i) for each lease or property is due for each month of the calendar year                             
23       on the last day of the following month; the amount of the installment payment is the                              
24       sum of                                                                                                            
25                      (A)  the applicable tax rate for oil provided under                                                
26            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
27            oil taxable under AS 43.55.011(i) and produced from the lease or property                                    
28            during the month; and                                                                                        
29                      (B)  the applicable tax rate for gas provided under                                                
30            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
31            gas taxable under AS 43.55.011(i) and produced from the lease or property                                    
01            during the month;                                                                                            
02                 (4)  any amount of tax levied by AS 43.55.011(e) or (i), net of any                                     
03       credits applied as allowed by law, that exceeds the total of the amounts due as                                   
04       installment payments of estimated tax is due on March 31 of the year following the                                
05       calendar year of production.                                                                                      
06    * Sec. 13. AS 43.55.025(a) is amended to read:                                                                     
07            (a)  Subject to the terms and conditions of this section, a credit against the                               
08       production tax levied by AS 43.55.011(e) is allowed for exploration expenditures that                             
09       qualify under (b) of this section in an amount equal to one of the following:                                     
10                 (1)  30 percent of the total exploration expenditures that qualify only                                 
11       under (b) and (c) of this section;                                                                                
12                 (2)  30 percent of the total exploration expenditures that qualify only                                 
13       under (b) and (d) of this section;                                                                                
14                 (3)  40 percent of the total exploration expenditures that qualify under                                
15       (b), (c), and (d) of this section;                                                                                
16                 (4)  40 percent of the total exploration expenditures that qualify only                                 
17       under (b) and (e) of this section; [OR]                                                                           
18                 (5)  80, 90, or 100 percent, or a lesser amount described in (l) of this                                
19       section, of the total exploration expenditures described in (b)(1) and (2) of this section                        
20       and not excluded by (b)(3) and (4) of this section that qualify only under (l) of this                            
21       section;                                                                                                      
22                 (6)  the lesser of $25,000,000 or 80 percent of the total exploration                               
23       drilling expenditures described in (n) of this section and that qualify under (b)                             
24       and (c) of this section; or                                                                                   
25                 (7)  the lesser of $7,500,000 or 75 percent of the total seismic                                    
26       exploration expenditures described in (o) of this section and that qualify under                              
27       (b) of this section.                                                                                          
28    * Sec. 14. AS 43.55.025(c) is amended to read:                                                                     
29            (c)  To be eligible for a [THE 30 PERCENT] production tax credit authorized                              
30       by (a)(1), (3), or (6) of this section [OR THE 40 PERCENT PRODUCTION TAX                                      
31       CREDIT AUTHORIZED BY (a)(3) OF THIS SECTION], exploration expenditures                                            
01       must                                                                                                              
02                 (1)  qualify under (b) of this section; and                                                             
03                 (2)  be for an exploration well, subject to the following:                                              
04                      (A)  before the well is spudded,                                                                   
05                           (i)  the explorer shall submit to the commissioner of                                         
06                 natural resources the information necessary to determine whether the                                    
07                 geological objective of the well is a potential oil or gas trap that is                                 
08                 distinctly separate from any trap that has been tested by a preexisting                                 
09                 well;                                                                                                   
10                           (ii)  at the time of the submittal of information under (i)                                   
11                 of this subparagraph, the commissioner of natural resources may                                         
12                 request from the explorer that specific data sets, ancillary data, and                                  
13                 reports including all results, and copies of well data collected and data                               
14                 analyses for the well be provided to the Department of Natural                                          
15                 Resources upon completion of the drilling; in this sub-subparagraph,                                    
16                 well data include all analyses conducted on physical material, and well                                 
17                 logs collected from the well and sample analyses; testing geophysical                                   
18                 and velocity data including vertical seismic profiles and check shot                                    
19                 surveys; testing data and analyses; age data; geochemical analyses; and                                 
20                 access to tangible material; and                                                                        
21                           (iii)  the commissioner of natural resources must make                                        
22                 an affirmative determination as to whether the geological objective of                                  
23                 the well is a potential oil or gas trap that is distinctly separate from any                            
24                 trap that has been tested by a preexisting well and what information                                    
25                 under (ii) of this subparagraph must be submitted by the explorer after                                 
26                 completion, abandonment, or suspension under AS 31.05.030; the                                          
27                 commissioner of natural resources shall make that determination within                                  
28                 60 days after receiving all the necessary information from the explorer                                 
29                 based on the information received and on other information the                                          
30                 commissioner of natural resources considers relevant;                                                   
31                      (B)  for an exploration well other than a well to explore a Cook                                   
01            Inlet prospect, the well must be located and drilled in such a manner that the                               
02            bottom hole is located not less than three miles away from the bottom hole of a                              
03            preexisting well drilled for oil or gas, irrespective of whether the preexisting                             
04            well has been completed, suspended, or abandoned;                                                            
05                      (C)  after completion, suspension, or abandonment under                                            
06            AS 31.05.030 of the exploration well, the commissioner of natural resources                                  
07            must determine that the well was consistent with achieving the explorer's                                    
08            stated geological objective.                                                                                 
09    * Sec. 15. AS 43.55.025 is amended by adding new subsections to read:                                              
10            (n)  The persons that drill the first four exploration wells in the state and within                         
11       the areas described in (p) of this section on state lands, private lands, or federal                              
12       onshore lands for the purpose of discovering oil or gas that penetrate and evaluate a                             
13       prospect in a basin described in (p) of this section are eligible for a credit under (a)(6)                       
14       of this section. A credit under this subsection may not be taken for more than two                                
15       exploration wells in a single area described in (p)(1) - (6) of this section. Exploration                         
16       expenditures eligible for the credit in this subsection must be incurred for work                                 
17       performed after June 1, 2012, and before July 1, 2016. A person planning to drill an                              
18       exploration well on private land and to apply for a credit under this subsection shall                            
19       obtain written consent from the owner of the oil and gas interest for the full public                             
20       release of all well data after the expiration of the confidentiality period applicable to                         
21       information collected under (f) of this section. The written consent of the owner of the                          
22       oil and gas interest must be submitted to the commissioner of natural resources before                            
23       approval of the proposed exploration well. In addition to the requirements in (c) of this                         
24       section and submission of the written consent of the owner of the oil and gas interest, a                         
25       person planning to drill an exploration well shall obtain approval from the                                       
26       commissioner of natural resources before the well is spudded. The commissioner of                                 
27       natural resources shall make a written determination approving or rejecting an                                    
28       exploration well within 60 days after receiving the request for approval or as soon as is                         
29       practicable thereafter. Before approving the exploration well, the commissioner of                                
30       natural resources shall consider the following: the location of the well; the proximity                           
31       to a community in need of a local energy source; the proximity of existing                                        
01       infrastructure; the experience and safety record of the explorer in conducting                                    
02       operations in remote or roadless areas; the projected cost schedule; whether seismic                              
03       mapping and seismic data sufficiently identify a particular trap for exploration;                                 
04       whether the targeted and planned depth and range are designed to penetrate and fully                              
05       evaluate the hydrocarbon potential of the proposed prospect and reach the level below                             
06       which economic hydrocarbon reservoirs are likely to be found, or reach 12,000 feet or                             
07       more true vertical depth; and whether the exploration plan provides for a full                                    
08       evaluation of the wellbore below surface casing to the depth of the well. Whether the                             
09       exploration well for which a credit is requested under this subsection is located within                          
10       an area and a basin described under (p) of this section shall be determined by the                                
11       commissioner of natural resources and reported to the commissioner. A taxpayer that                               
12       obtains a credit under this subsection may not claim a tax credit under AS 43.55.023                              
13       or another provision in this section for the same exploration expenditure.                                        
14            (o)  The persons that conduct the first four seismic exploration projects in the                             
15       state and within the areas described in (p) of this section for the purpose of discovering                        
16       oil or gas in a basin are eligible for the credit under (a)(7) of this section. A credit                          
17       under this subsection may not be taken for more than one seismic exploration project                              
18       in a single area described in (p)(1) - (6) of this section. Exploration expenditures                              
19       eligible for the credit in this subsection must be incurred for work performed after                              
20       June 1, 2012, and before July 1, 2016. A person planning to conduct a seismic                                     
21       exploration project on private land and to apply for a credit under this subsection shall                         
22       obtain written consent from the owner of the oil and gas interest for the full public                             
23       release of all geophysical data and compliance with the data submission requirements                              
24       in (f)(2) of this section. Notwithstanding (f)(2)(C)(ii) of this section, to qualify for a                        
25       credit under this subsection, a person shall submit the written consent of the owner of                           
26       the oil and gas interest for the release of data if applicable, and all data required under                       
27       (f)(2) of this section to the Department of Natural Resources and shall agree in writing                          
28       that all seismic data requirements submitted under the requirements of (f)(2) of this                             
29       section may be made public two years after receiving a credit under this subsection. A                            
30       person intending to qualify for the tax credit under this subsection shall obtain                                 
31       approval from the commissioner of natural resources before the commencement of the                                
01       seismic exploration activities. The commissioner of natural resources shall make a                                
02       written determination approving or rejecting a seismic project within 60 days after                               
03       receiving the request for approval or as soon as is practicable thereafter. Before                                
04       approving a seismic exploration project, the commissioner shall consider the                                      
05       following: the location of the project; the projected cost schedule; the data acquisition                         
06       and data processing plan; the reasons for choosing the particular area for seismic                                
07       exploration; and the experience and safety record of the person in conducting seismic                             
08       exploration operations in remote or roadless areas. Whether the seismic exploration                               
09       project for which a credit is requested under this subsection is located in a basin                               
10       described in (p) of this section shall be determined by the commissioner of natural                               
11       resources and reported to the commissioner. A taxpayer that obtains a credit under this                           
12       subsection may not claim a tax credit under AS 43.55.023 or another provision in this                             
13       section for the same exploration expenditure.                                                                     
14            (p)  The activity that is the basis for a credit claimed under (a)(6) and (n) of                             
15       this section or (a)(7) and (o) of this section must be for the exploration of a basin and                         
16       within the following areas whose central points are determined using the World                                    
17       Geographic System of 1984 datum,                                                                                  
18                 (1)  100 miles from 66.896128 degrees North, -162.598187 degrees                                        
19       West;                                                                                                             
20                 (2)  150 miles from 64.839474 degrees North, -147.72094 degrees                                         
21       West;                                                                                                             
22                 (3)  50 miles from 62.776428 degrees North, -164.495201 degrees                                         
23       West;                                                                                                             
24                 (4)  50 miles from 62.110357 degrees North, -145.530551 degrees                                         
25       West;                                                                                                             
26                 (5)  100 miles from 58.189868 degrees North, -157.371104 degrees                                        
27       West;                                                                                                             
28                 (6)  100 miles from 56.005988 degrees North, -160.56083 degrees                                         
29       West.                                                                                                             
30    * Sec. 16. AS 43.55.028(a) is amended to read:                                                                     
31            (a)  The oil and gas tax credit fund is established as a separate fund of the state.                         
01       The purpose of the fund is to purchase transferable tax credit certificates issued under                          
02       AS 43.55.023 and production tax credit certificates issued under AS 43.55.025 and to                              
03       pay refunds and payments claimed under AS 43.20.046 or 43.20.047.                                         
04    * Sec. 17. AS 43.55.028(g) is amended to read:                                                                     
05            (g)  The department may adopt regulations to carry out the purposes of this                                  
06       section, including standards and procedures to allocate available money among                                     
07       applications for purchases under this chapter and claims for refunds and payments                             
08       under AS 43.20.046 or 43.20.047 when the total amount of the applications for                                 
09       purchase and claims for refund exceed the amount of available money in the fund. The                              
10       regulations adopted by the department may not, when allocating available money in                                 
11       the fund under this section, distinguish an application for the purchase of a credit                              
12       certificate issued under AS 43.55.023(m) or a claim for a refund or payment under                         
13       AS 43.20.046 or AS 43.20.047.                                                                                 
14    * Sec. 18. AS 43.55.160(a) is amended to read:                                                                     
15            (a)  Except as provided in (b) of this section, for the purposes of                                          
16                 (1)  AS 43.55.011(e), the annual production tax value of the taxable oil,                           
17       gas, or [(A)] oil and gas subject to this paragraph produced during a calendar year                       
18       [FROM LEASES OR PROPERTIES IN THE STATE THAT INCLUDE LAND                                                         
19       NORTH OF 68 DEGREES NORTH LATITUDE] is the gross value at the point of                                            
20       production of the oil, gas, or oil and gas taxable under AS 43.55.011(e) [AND                                 
21       PRODUCED BY THE PRODUCER FROM THOSE LEASES OR PROPERTIES],                                                        
22       less the producer's lease expenditures under AS 43.55.165 for the calendar year                                   
23       applicable to the oil, gas, or oil and gas, as applicable, produced by the producer from                  
24       [THOSE] leases or properties, as adjusted under AS 43.55.170; this paragraph                                  
25       applies to                                                                                                    
26                      (A)  oil and gas produced from leases or properties in the                                     
27            state that include land north of 68 degrees North latitude, other than gas                               
28            produced before 2022 and used in the state [THIS SUBPARAGRAPH                                            
29            DOES NOT APPLY TO GAS SUBJECT TO AS 43.55.011(o)];                                                           
30                      (B)  oil and gas produced [DURING A CALENDAR YEAR]                                                 
31            from leases or properties in the state outside the Cook Inlet sedimentary basin,                             
01            no part of which is north of 68 degrees North latitude [, IS THE GROSS                                       
02            VALUE AT THE POINT OF PRODUCTION OF THE OIL AND GAS                                                          
03            TAXABLE UNDER AS 43.55.011(e) AND PRODUCED BY THE                                                            
04            PRODUCER FROM THOSE LEASES OR PROPERTIES, LESS THE                                                           
05            PRODUCER'S LEASE EXPENDITURES UNDER AS 43.55.165 FOR THE                                                     
06            CALENDAR YEAR APPLICABLE TO THE OIL AND GAS PRODUCED                                                         
07            BY THE PRODUCER FROM THOSE LEASES OR PROPERTIES, AS                                                          
08            ADJUSTED UNDER AS 43.55.170]; this subparagraph does not apply to gas                                        
09                           (i)  produced before 2022 and used in the state; or                                       
10                           (ii)  oil and gas subject to AS 43.55.011(p) [SUBJECT                                     
11                 TO AS 43.55.011(o)];                                                                                    
12                      (C)  oil produced before 2022 [DURING A CALENDAR                                               
13            YEAR] from a lease or property in the Cook Inlet sedimentary basin [IS THE                                   
14            GROSS VALUE AT THE POINT OF PRODUCTION OF THE OIL                                                            
15            TAXABLE UNDER AS 43.55.011(e) AND PRODUCED BY THE                                                            
16            PRODUCER FROM THAT LEASE OR PROPERTY, LESS THE                                                               
17            PRODUCER'S LEASE EXPENDITURES UNDER AS 43.55.165 FOR THE                                                     
18            CALENDAR YEAR APPLICABLE TO THE OIL PRODUCED BY THE                                                          
19            PRODUCER FROM THAT LEASE OR PROPERTY, AS ADJUSTED                                                            
20            UNDER AS 43.55.170];                                                                                         
21                      (D)  gas produced before 2022 [DURING A CALENDAR                                               
22            YEAR] from a lease or property in the Cook Inlet sedimentary basin [IS THE                                   
23            GROSS VALUE AT THE POINT OF PRODUCTION OF THE GAS                                                            
24            TAXABLE UNDER AS 43.55.011(e) AND PRODUCED BY THE                                                            
25            PRODUCER FROM THAT LEASE OR PROPERTY, LESS THE                                                               
26            PRODUCER'S LEASE EXPENDITURES UNDER AS 43.55.165 FOR THE                                                     
27            CALENDAR YEAR APPLICABLE TO THE GAS PRODUCED BY THE                                                          
28            PRODUCER FROM THAT LEASE OR PROPERTY, AS ADJUSTED                                                            
29            UNDER AS 43.55.170];                                                                                         
30                      (E)  gas produced before 2022 [DURING A CALENDAR                                               
31            YEAR] from a lease or property in the state outside the Cook Inlet                                       
01            sedimentary basin and used in the state [IS THE GROSS VALUE AT THE                                           
02            POINT OF PRODUCTION OF THAT GAS TAXABLE UNDER                                                                
03            AS 43.55.011(e) AND PRODUCED BY THE PRODUCER FROM THAT                                                       
04            LEASE OR PROPERTY, LESS THE PRODUCER'S LEASE                                                                 
05            EXPENDITURES UNDER AS 43.55.165 FOR THE CALENDAR YEAR                                                        
06            APPLICABLE TO THAT GAS PRODUCED BY THE PRODUCER FROM                                                         
07            THAT LEASE OR PROPERTY, AS ADJUSTED UNDER AS 43.55.170];                                                     
08                      (F)  oil and gas subject to AS 43.55.011(p) produced from                                      
09            leases or properties in the state;                                                                       
10                      (G)  oil and gas produced from a lease or property no part                                     
11            of which is north of 68 degrees North latitude, other than oil or gas                                    
12            described in (B), (C), (D), (E), or (F) of this paragraph;                                               
13                 (2)  AS 43.55.011(g), the monthly production tax value of the taxable                                   
14                      (A)  oil and gas produced during a month from leases or                                            
15            properties in the state that include land north of 68 degrees North latitude is the                          
16            gross value at the point of production of the oil and gas taxable under                                      
17            AS 43.55.011(e) and produced by the producer from those leases or properties,                                
18            less 1/12 of the producer's lease expenditures under AS 43.55.165 for the                                    
19            calendar year applicable to the oil and gas produced by the producer from                                    
20            those leases or properties, as adjusted under AS 43.55.170; this subparagraph                                
21            does not apply to gas subject to AS 43.55.011(o);                                                            
22                      (B)  oil and gas produced during a month from leases or                                            
23            properties in the state outside the Cook Inlet sedimentary basin, no part of                                 
24            which is north of 68 degrees North latitude, is the gross value at the point of                              
25            production of the oil and gas taxable under AS 43.55.011(e) and produced by                                  
26            the producer from those leases or properties, less 1/12 of the producer's lease                              
27            expenditures under AS 43.55.165 for the calendar year applicable to the oil and                              
28            gas produced by the producer from those leases or properties, as adjusted under                              
29            AS 43.55.170; this subparagraph does not apply to gas subject to                                             
30            AS 43.55.011(o);                                                                                             
31                      (C)  oil produced during a month from a lease or property in the                                   
01            Cook Inlet sedimentary basin is the gross value at the point of production of                                
02            the oil taxable under AS 43.55.011(e) and produced by the producer from that                                 
03            lease or property, less 1/12 of the producer's lease expenditures under                                      
04            AS 43.55.165 for the calendar year applicable to the oil produced by the                                     
05            producer from that lease or property, as adjusted under AS 43.55.170;                                        
06                      (D)  gas produced during a month from a lease or property in                                       
07            the Cook Inlet sedimentary basin is the gross value at the point of production                               
08            of the gas taxable under AS 43.55.011(e) and produced by the producer from                                   
09            that lease or property, less 1/12 of the producer's lease expenditures under                                 
10            AS 43.55.165 for the calendar year applicable to the gas produced by the                                     
11            producer from that lease or property, as adjusted under AS 43.55.170;                                        
12                      (E)  gas produced during a month from a lease or property                                          
13            outside the Cook Inlet sedimentary basin and used in the state is the gross                                  
14            value at the point of production of that gas taxable under AS 43.55.011(e) and                               
15            produced by the producer from that lease or property, less 1/12 of the                                       
16            producer's lease expenditures under AS 43.55.165 for the calendar year                                       
17            applicable to that gas produced by the producer from that lease or property, as                              
18            adjusted under AS 43.55.170.                                                                                 
19    * Sec. 19. AS 43.55.160(e) is amended to read:                                                                     
20            (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that                                   
21       would otherwise be deductible by a producer in a calendar year but whose deduction                                
22       would cause an annual production tax value calculated under (a)(1) of this section of                             
23       taxable oil or gas produced during the calendar year to be less than zero may be used                             
24       to establish a carried-forward annual loss under AS 43.55.023(b). However, the                                    
25       department shall provide by regulation a method to ensure that, for a period for which                            
26       a producer's tax liability is limited by AS 43.55.011(j), (k), [OR] (o), or (p), any                          
27       adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would otherwise                                 
28       be deductible by a producer for that period but whose deduction would cause a                                     
29       production tax value calculated under (a)(1)(C), (D), [OR] (E), or (F) of this section to                     
30       be less than zero are accounted for as though the adjusted lease expenditures had first                           
31       been used as deductions in calculating the production tax values of oil or gas subject to                         
01       any of the limitations under AS 43.55.011(j), (k), [OR] (o), or (p) that have positive                        
02       production tax values so as to reduce the tax liability calculated without regard to the                          
03       limitation to the maximum amount provided for under the applicable provision of                                   
04       AS 43.55.011(j), (k), [OR] (o), or (p). Only the amount of those adjusted lease                               
05       expenditures remaining after the accounting provided for under this subsection may be                             
06       used to establish a carried-forward annual loss under AS 43.55.023(b). In this                                    
07       subsection, "producer" includes "explorer."                                                                       
08    * Sec. 20. AS 43.75.130(f) is amended to read:                                                                     
09            (f)  For purposes of this section, tax revenue collected under AS 43.75.015                                  
10       from a person entitled to a credit under AS 43.75.035, [OR] 43.75.036, or                                 
11       AS 43.98.030 shall be calculated as if the person's tax were collected without applying                       
12       the credit; tax revenue collected does not include the amount of a tax credit recaptured                          
13       under AS 43.75.035(g) or 43.75.036(g).                                                                            
14    * Sec. 21. AS 43.77.060(e) is amended to read:                                                                     
15            (e)  For purposes of this section, tax revenue collected under AS 43.77.010                                  
16       from a person entitled to a credit under AS 43.77.035, [OR] 43.77.045, or                                 
17       AS 43.98.030 shall be calculated as if the person's tax had been collected without                            
18       applying the credits.                                                                                             
19    * Sec. 22. AS 43.98.030(a) is amended to read:                                                                     
20            (a)  The [IN COOPERATION WITH THE FILM OFFICE IN THE                                                     
21       DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC                                                                   
22       DEVELOPMENT, THE] department shall provide a transferable film production tax                                     
23       credit certificate to a producer, as defined in AS 44.25.190 [AS 44.33.239], for                          
24       qualified production expenditures under AS 44.25.100 - 44.25.190. The department                              
25       shall publish the name and contact information for each person provided a                                     
26       transferable tax credit certificate under this subsection [AS 44.33.231 -                                     
27       44.33.239].                                                                                                     
28    * Sec. 23. AS 43.98.030(b) is amended to read:                                                                     
29            (b)  A tax credit certificate provided under (a) of this section may be sold,                            
30       assigned, exchanged, conveyed, or otherwise transferred in whole or in part.                                      
31    * Sec. 24. AS 43.98.030(c) is amended to read:                                                                     
01            (c)  A taxpayer acquiring a transferable tax credit certificate may use the                          
02       credit or a portion of the credit to offset taxes imposed under AS 21.09.210,                                 
03       AS 21.66.110, AS 43.20, AS 43.55, AS 43.56, AS 43.65, AS 43.75, and AS 43.77.                                 
04       Except as provided in (e) of this section, any [AS 43.20 (ALASKA NET INCOME                                   
05       TAX ACT). ANY] portion of the credit not used may be used at a later period or                                    
06       transferred under (b) of this section.                                                                            
07    * Sec. 25. AS 43.98.030(e) is amended to read:                                                                     
08            (e)  A transferable film production tax credit certificate provided under (a)                        
09       of this section, whether sold, assigned, exchanged, conveyed, or otherwise transferred,                           
10       in whole or in part, must be used within six [THREE] years after being provided by                            
11       the department.                                                                                                   
12    * Sec. 26. AS 43.98.030(f) is amended to read:                                                                     
13            (f)  The total amount [NUMBER] of tax credits provided in the aggregate                                  
14       under this section may not exceed                                                                                 
15                 (1)  $100,000,000 for productions qualified under former                                        
16       AS 44.33.234 before July 1, 2013; and                                                                         
17                 (2)  $200,000,000 for productions qualified under AS 44.25.120                                      
18       after June 30, 2013, and before July 1, 2023.                                                                 
19    * Sec. 27. AS 43.98.030 is amended by adding new subsections to read:                                              
20            (g)  A person acquiring two or more film production tax credit certificates                                  
21       provided under (a) of this section may combine the unused amounts of the credits for                              
22       sale, assignment, exchange, conveyance, or other transfer. At the request of a person                             
23       holding a film production tax credit, the department shall replace a certificate that                             
24       represents the full amount of tax credit available with multiple certificates that each                           
25       represent a portion of the total tax credit available for the purpose of sale, assignment,                        
26       exchange, conveyance, or other transfer under this subsection or, on request, shall                               
27       provide one tax credit certificate that represents the combined value of multiple tax                             
28       credit certificates. A tax credit certificate provided by the department under this                               
29       subsection must state the expiration date and the amount of each credit that is included                          
30       in the certificate. Combining or splitting unused amounts of credits under this                                   
31       subsection does not change or extend the time period in which each credit that is                                 
01       included in the combination or split must be used.                                                                
02            (h)  Subject to appropriation, the department may purchase a transferable film                               
03       production tax credit certificate for 75 percent of the amount of each credit that is                             
04       included in the certificate.                                                                                      
05    * Sec. 28. AS 44.25 is amended by adding new sections to read:                                                     
06                          Article 3. Film Office.                                                                      
07            Sec. 44.25.100. Film office. The film office is created in the Department of                               
08       Revenue. The film office shall administer the Alaska film production incentive                                    
09       program.                                                                                                          
10            Sec. 44.25.105. Duties. (a) The film office shall make available to the                                    
11       legislature, within 30 days after the start of each regular session, a report of the                              
12       activities conducted by the film office under AS 44.25.100 - 44.25.190. The report                                
13       must include                                                                                                      
14                 (1)  the number of applications received under AS 44.25.120;                                            
15                 (2)  the number of applications approved by the film office;                                            
16                 (3)  the number of, and amount of, tax credits disbursed under                                          
17       AS 44.25.110;                                                                                                     
18                 (4)  the total amount of expenditures that were paid by productions                                     
19       qualifying for the film production tax credit that were not qualified expenditures;                               
20                 (5)  the total amount of qualified expenditures that were paid by                                       
21       productions qualifying for the film production tax credit to Alaska businesses;                                   
22                 (6)  the total amount of qualified expenditures that were paid by                                       
23       productions qualifying for the film production tax credit to Alaska residents as wages;                           
24                 (7)  the total amount of qualified expenditures that were paid by                                       
25       productions qualifying for the film production tax credit for wages paid to individuals                           
26       who were not residents;                                                                                           
27                 (8)  the total number of residents employed by productions qualifying                                   
28       for the film production tax credit;                                                                               
29                 (9)  the total number of individuals employed by productions qualifying                                 
30       for the film production tax credit who were not residents;                                                        
31                 (10)  the number of productions qualifying for the film production tax                                  
01       credit that used a third party to sell, assign, exchange, convey, or otherwise transfer, in                       
02       whole or in part, a tax credit certificate received by the production; in this paragraph,                         
03       "third party" means a person other than the producer or an employee of the producer                               
04       of the production qualifying for the film production tax credit; and                                              
05                 (11)  the number of purchases of transferable film production tax credit                                
06       certificates under AS 43.98.030(h) and the total amount of film production tax credits                            
07       shown on the certificates purchased by the Department of Revenue.                                                 
08            (b)  The film office shall design a logo that represents the film office and must                            
09       be included in a film qualifying for a film production tax credit under AS 44.25.100 -                            
10       44.25.190.                                                                                                        
11            (c)  The film office shall provide an on-site liaison to a film production that is                           
12       subject to the maximum application fee under AS 44.25.120(d). The liaison shall assist                            
13       the producer in meeting the requirements of AS 44.25.100 - 44.25.190 and ensure that                              
14       the production is in the best interests of the state as described in the application filed                        
15       under AS 44.25.120 and approved under AS 44.25.150.                                                               
16            Sec. 44.25.110. Alaska film production incentive program. Subject to                                       
17       appropriations for the purpose, the film office shall administer the Alaska film                                  
18       production incentive program to provide a tax credit under AS 43.98.030 for certain                               
19       film production expenditures incurred in the state.                                                               
20            Sec. 44.25.115. Eligibility. (a) A film production is eligible for a tax credit                            
21       under AS 43.98.030, if the                                                                                        
22                 (1)  producer has $75,000 or more in qualified expenditures in a                                        
23       consecutive 36-month period under AS 44.25.130;                                                                   
24                 (2)  Alaska Film Incentive Review Commission determines that the                                        
25       production is not contrary to the best interests of the state; and                                                
26                 (3)  production is approved by the film office.                                                         
27            (b)  In determining under (a) of this section whether a production is not                                    
28       contrary to the best interests of the state, the Alaska Film Incentive Review                                     
29       Commission shall consider the effect of the production on                                                         
30                 (1)  both the immediate and long-term prospects for the film industry in                                
31       the state;                                                                                                        
01                 (2)  both the immediate and long-term prospects for the employment of                                   
02       Alaska residents;                                                                                                 
03                 (3)  both the immediate and long-term prospects for the economy of the                                  
04       state;                                                                                                            
05                 (4)  the public perception of state policy on the utilization and                                       
06       development of the natural resources of the state; and                                                            
07                 (5)  the immediate and long-term prospects for the fiscal health of the                                 
08       state.                                                                                                            
09            Sec. 44.25.120. Qualification for film production tax credit. (a) A film                                   
10       producer may apply for the film production tax credit under AS 43.98.030 by                                       
11       submitting an application to the film office on a form provided by the film office. The                           
12       application must include                                                                                          
13                 (1)  a script or synopsis of the production;                                                            
14                 (2)  the names of the producer, director, and proposed cast;                                            
15                 (3)  estimated start, completion, and filming dates; and                                                
16                 (4)  other information the film office may require to determine the                                     
17       producer's qualification for a credit and the estimated amount of the credit.                                     
18            (b)  If the Alaska Film Incentive Review Commission approves an application                                  
19       submitted under (a) of this section, the film office shall issue a notice of qualification                        
20       to the producer. The notice of qualification must include a determination by the film                             
21       office of the estimated film production tax credit for which the production qualifies.                            
22            (c)  Information submitted in an application under (a) of this section is                                    
23       confidential and is not subject to inspection or copying under AS 40.25.110 -                                     
24       40.25.125.                                                                                                        
25            (d)  At the time an application is submitted under (a) of this section, a film                               
26       producer shall submit an application fee equal to 0.2 percent of the estimated total                              
27       qualified expenditures to be incurred in the state, except that the application fee may                           
28       not be less than $200 or more than $5,000. The application fee is not subject to refund.                          
29            Sec. 44.25.125. Award of film production tax credit. (a) Subject to                                        
30       AS 43.98.030(f) and to (i) of this section, the film office shall determine the amount of                         
31       the tax credit under AS 43.98.030 available to a producer who has obtained a notice of                            
01       qualification under AS 44.25.120(b), based on the qualified expenditures of the                                   
02       production under AS 44.25.130. After the film office determines the amount of the tax                             
03       credit, the tax credit shall be submitted to the Alaska Film Incentive Review                                     
04       Commission for approval.                                                                                          
05            (b)  Except as provided in (k) of this section, the base amount of a tax credit                              
06       awarded under this section is equal to 30 percent of the qualified expenditures of a                              
07       production.                                                                                                       
08            (c)  In determining the amount of the tax credit and subject to approval by the                              
09       Alaska Film Incentive Review Commission, the applicable percentage provided by (b)                                
10       of this section shall be increased by the film office based on the following criteria:                            
11                 (1)  an additional 20 percent of qualified expenditures that are wages                                  
12       paid to Alaska residents;                                                                                         
13                 (2)  an additional six percent of qualified expenditures made in a rural                                
14       area; and                                                                                                         
15                 (3)  an additional two percent of qualified expenditures made in the                                    
16       state between October 1 and March 30.                                                                             
17            (d)  After completion of the production, the producer shall provide the film                                 
18       office with a production cost report detailing the qualified expenditures of the                                  
19       production, with verification by an independent certified public accountant, licensed in                          
20       the state and approved by the film office, that the costs claimed in the report are                               
21       qualified expenditures under AS 44.25.130 and that there is no outstanding balance for                            
22       a qualified expenditure that is due to a person in the state. The independent certified                           
23       public accountant providing verification under this subsection may not engage in the                              
24       sale, assignment, exchange, conveyance, or other transfer of a tax credit certificate that                        
25       includes a credit based on the qualified expenditures that are verified by that                                   
26       independent certified public accountant. If the independent certified public accountant                           
27       providing verification under this subsection subsequently engages in the sale,                                    
28       assignment, exchange, conveyance, or other transfer of a credit for which a qualified                             
29       expenditure was verified by that independent certified public accountant, the film                                
30       office may require the producer providing the production cost report to have the                                  
31       qualified expenditures verified by an independent certified public accountant licensed                            
01       in the state that is not engaged in the sale, assignment, exchange, conveyance, or other                          
02       transfer related to a credit for the qualified expenditures.                                                      
03            (e)  Subject to (g) of this section, the film office shall determine the amount of                           
04       the tax credit based on the information provided by the producer under (d) of this                                
05       section and, after approval by the Alaska Film Incentive Review Commission, shall                                 
06       award a tax credit under AS 43.98.030 if the producer has satisfied all requirements                              
07       under AS 44.25.100 - 44.25.190.                                                                                   
08            (f)  The award of a tax credit under this section is conditioned on the                                      
09       producer's and the production's full compliance with all applicable state laws and                                
10       regulations. At the request of the film office, a producer shall provide any information                          
11       necessary for the film office to determine the producer's and production's compliance                             
12       with this subsection.                                                                                             
13            (g)  In determining the amount of a tax credit awarded under this section, the                               
14       film office shall reduce the amount of the tax credit by any amount the film office                               
15       considers necessary to allow the state, or a political subdivision of the state, to recover                       
16       the cost of any damages caused by any act or omission of the producer or production.                              
17            (h)  The film office may withhold the award of a tax credit under this section if                            
18       the office determines that there are filed, but unresolved, legal actions in the state                            
19       involving the producer or production.                                                                             
20            (i)  To qualify for the tax credit under AS 43.98.030, a producer shall include,                             
21                 (1)  in the end credits of each qualified film, the film office logo                                    
22       designed under AS 44.25.105(b) and the words, "Filmed in Alaska with the Support of                               
23       the State of Alaska"; or                                                                                          
24                 (2)  on each DVD or other media produced for distribution, a short                                      
25       Alaska promotional video or advertisement approved by the Alaska Film Incentive                                   
26       Review Commission.                                                                                                
27            (j)  The Department of Revenue may not provide a tax credit certificate under                                
28       AS 43.98.030 to a producer that fails to meet the requirements in (i) of this section.                            
29            (k)  In place of the 30 percent credit applicable to qualified expenditures under                            
30       (a) of this section, the tax credit for expenditures for services performed in the state,                         
31       including all salaries, wages, compensation, and related benefits, by producers,                                  
01       directors, writers, and principal actors that fail to meet the eligibility requirements for                       
02       a permanent fund dividend in AS 43.23.005(a)(2) - (7), and all entities representing                              
03       producers, directors, writers, and principal actors that fail to meet the eligibility                             
04       requirements for a permanent fund dividend in AS 43.23.005(a)(2) - (7), is five                                   
05       percent. The amount of the five percent credit may be increased by adding an amount                               
06       equal to 50 percent of the qualified expenditures paid to residents of the state under                            
07       AS 44.25.130(a)(10) and 50 percent of the qualified expenditures paid under                                       
08       AS 44.25.130(a)(11) - (13) and (15). In this subsection, "principal actors" means the                             
09       five highest compensated actors or entities representing the five highest compensated                             
10       actors in the production.                                                                                         
11            Sec. 44.25.130. Determination of qualified expenditures. (a) Expenditures                                  
12       made by a production company licensed to do business in the state in connection with                              
13       a film production approved by the film office that shall be considered qualified                                  
14       expenditures must be directly related to the production and be incurred in the state.                             
15       Only expenditures that are ordinary, reasonable, and not in excess of fair market value                           
16       and that are for real or tangible property, fees, services, or state or municipal taxes                           
17       shall be considered. Expenditures may include                                                                     
18                 (1)  costs of set construction and operation;                                                           
19                 (2)  costs of wardrobes, make-up, accessories, and related services;                                    
20                 (3)  costs associated with photography and sound synchronization;                                       
21                 (4)  costs of lighting and related services and materials;                                              
22                 (5)  costs of editing and related services;                                                             
23                 (6)  rental of facilities and equipment;                                                                
24                 (7)  leasing of vehicles;                                                                               
25                 (8)  costs of food and lodging;                                                                         
26                 (9)  costs of digital or tape editing, film processing, transfer of film to                             
27       tape or digital format, transfer of digital media to film or tape, sound mixing, and                              
28       special and visual effects;                                                                                       
29                 (10)  the total aggregate expenditures for services performed in the                                    
30       state, including all salaries, wages, compensation, and related benefits provided to                              
31       producers, directors, writers, actors, and other personnel that are directly attributable                         
01       to services performed in the state;                                                                               
02                 (11)  the costs of the use of an Alaska business for processing qualified                               
03       payroll and related expenditures;                                                                                 
04                 (12)  costs of music, if performed, composed, or recorded by an Alaska                                  
05       musician, or released or published by an Alaska business;                                                         
06                 (13)  costs of intrastate travel, if provided by an Alaska business;                                    
07                 (14)  costs relating to the design, construction, improvement, or repair                                
08       of a film, video, television, or digital production or postproduction facility or related                         
09       property, infrastructure, or equipment, except commercial exhibition facilities, as                               
10       determined by the film office;                                                                                    
11                 (15)  costs of state or municipal taxes levied in Alaska on the lease or                                
12       rental of passenger or recreational vehicles or the rental of rooms or other lodging; or                          
13                 (16)  other similar production expenditures as determined by the film                                   
14       office.                                                                                                           
15            (b)  Production costs that may not be considered qualified expenditures include                              
16                 (1)  costs related to the acquisition, determination, transfer, or use of a                             
17       film production tax credit under AS 43.98.030;                                                                    
18                 (2)  postproduction expenditures for marketing and distribution;                                        
19                 (3)  production financing, depreciation, and amortization costs, and                                    
20       other costs that are not cash or cash equivalent expenditures directly attributable to                            
21       production costs incurred in the state;                                                                           
22                 (4)  amounts that are later reimbursed or reasonably anticipated to be                                  
23       reimbursed, resulting in a reduction in production costs;                                                         
24                 (5)  amounts that are reasonably anticipated to be recovered through                                    
25       subsequent sale or other realization of value by disposal of an asset that has been                               
26       claimed as a qualified expenditure;                                                                               
27                 (6)  amounts that are paid to a person or entity as a result of                                         
28       participation in profits from the exploitation of the production;                                                 
29                 (7)  costs incurred in the purchase of real or tangible property for which                              
30       a qualified expenditure has, at any time, been claimed.                                                           
31            Sec. 44.25.135. Recovery of film production tax credit. (a) The film office                                
01       may review, audit, and bring legal proceedings to recover any amount of a tax credit                              
02       awarded under AS 44.25.125 from a producer or production to which a credit was                                    
03       awarded if the film office determines that the film producer or production is liable for                          
04       damages to the state, or any political subdivision of the state.                                                  
05            (b)  Legal proceedings may not be brought under (a) of this section more than                                
06       six years after the date the tax credit was awarded under AS 44.25.125.                                           
07            Sec. 44.25.140. Regulations. The film office may adopt procedures and                                      
08       regulations to carry out its functions under AS 44.25.100 - 44.25.190.                                            
09            Sec. 44.25.145. Alaska Film Incentive Review Commission. (a) The Alaska                                    
10       Film Incentive Review Commission is created in the Department of Revenue.                                         
11            (b)  The membership of the commission consists of the                                                        
12                 (1)  commissioner of commerce, community, and economic                                                  
13       development;                                                                                                      
14                 (2)  commissioner of natural resources;                                                                 
15                 (3)  commissioner of revenue;                                                                           
16                 (4)  commissioner of labor and workforce development.                                                   
17            (c)  A majority of the commission constitutes a quorum. Approval of an                                       
18       application for qualification under AS 44.25.120 and 44.25.150 and the award of film                              
19       production tax credits under AS 44.25.120 and 44.25.150 require an affirmative vote                               
20       by three members of the commission.                                                                               
21            (d)  The commission shall employ an executive director and additional staff to                               
22       support the work of the commission, oversee the film office, and carry out the duties                             
23       of the film office under AS 44.25.100 - 44.25.190. The commission shall provide                                   
24       general direction to the executive director and staff for the operation of the film office.                       
25            (e)  The commission may consult with individuals knowledgeable about film                                    
26       production and accounting as necessary to perform the duties of the commission.                                   
27            Sec. 44.25.150. Review of qualifications and award of film production tax                                  
28       credits. (a) The executive director shall review each application submitted to the film                         
29       office under AS 44.25.120 and each production cost report submitted to the film office                            
30       under AS 44.25.125.                                                                                               
31            (b)  After finding that an application submitted under AS 44.25.120 is                                       
01       complete, the executive director shall review the application and submit the                                      
02       application for approval to the commission along with a recommendation to approve                                 
03       or reject the application. After reviewing the application, the recommendation of the                             
04       executive director, and additional information an applicant may provide or the                                    
05       commission may request, the commission shall make a decision as to whether the                                    
06       production proposed in the application and the estimated amount of the film                                       
07       production tax credit are in the best interest of the state. The commission may not                               
08       approve an application for a film production that the commission finds is contrary to                             
09       the natural resource development policy of the state. The commission shall issue a                                
10       decision either approving or rejecting the application and qualification of the                                   
11       applicant. A decision of the commission on the qualification of an applicant is in the                            
12       discretion of the commission and is not subject to appeal except on the issue of                                  
13       whether the decision of the commission is arbitrary or capricious. If appealed, the                               
14       appeal is subject to AS 44.62 (Administrative Procedure Act).                                                     
15            (c)  After reviewing the production cost report submitted by a producer under                                
16       AS 44.25.125, the executive director shall review and verify the information included                             
17       on the production cost report. The executive director shall determine the amount of the                           
18       credit for which the producer may qualify and make a recommendation to the                                        
19       commission as to the amount of the credit to be awarded. The commission may                                       
20       approve the credit amount recommended by the executive director, adjust the amount                                
21       of the credit, deny all or part of the credit, or return the production cost report to the                        
22       executive director for additional review. The denial of a film production tax credit                              
23       under this section is subject to appeal under AS 44.62 (Administrative Procedure Act).                            
24            Sec. 44.25.190. Definitions. In AS 44.25.100 - 44.25.190,                                                  
25                 (1)  "Alaska business" means                                                                            
26                      (A)  a person who holds a current Alaska business license;                                         
27                      (B)  a person who provides goods or services under the name as                                     
28            appearing on the person's current Alaska business license;                                                   
29                      (C)  a person who has maintained a place of business within the                                    
30            state staffed by the person or an employee of the person for a period of six                                 
31            months immediately preceding the date the goods or services were provided;                                   
01                      (D)  a person who is                                                                               
02                           (i)  incorporated or qualified to do business under the                                       
03                 laws of the state;                                                                                      
04                           (ii)  a sole proprietorship, and the proprietor is a resident                                 
05                 of the state;                                                                                           
06                           (iii)  a limited liability company organized under                                            
07                 AS 10.50, and all members are residents of the state; or                                                
08                           (iv)  a partnership under former AS 32.05, AS 32.06, or                                       
09                 AS 32.11, and all partners are residents of the state; and                                              
10                      (E)  if the business is a joint venture, a joint venture composed                                  
11            entirely of ventures that qualify under (A) - (D) of this paragraph;                                         
12                 (2)  "film" includes television, commercials, and videos;                                               
13                 (3)  "film office" means the film office created under AS 44.25.100;                                    
14                 (4)  "producer" means a person who arranges financing for or                                            
15       supervises the production of a film, video, commercial, or television production or                               
16       pilot;                                                                                                            
17                 (5)  "rural area" means a community in the state with a population of                                   
18       1,500 or less or a community with a population of 10,000 or less that is not connected                            
19       by road or rail to Anchorage or Fairbanks.                                                                        
20    * Sec. 29. AS 44.33.231 is repealed and reenacted to read:                                                         
21            Sec. 44.33.231. Film production promotion program. (a) The film                                            
22       production promotion program is established in the Department of Commerce,                                        
23       Community, and Economic Development.                                                                              
24            (b)  The purpose of the film production promotion program is to                                              
25                 (1)  work with organizations in the private sector for the expansion and                                
26       development of film production industries in the state;                                                           
27                 (2)  promote Alaska as an appropriate location for film production;                                     
28                 (3)  provide production assistance through connecting film directors,                                   
29       makers, and producers with Alaska location scouts and contractors, including                                      
30       contractors providing assistance with permit applications; and                                                    
31                 (4)  certify Alaska film production internship training programs and                                    
01       promote the employment of program interns by eligible productions.                                                
02            (c)  On request, the Department of Commerce, Community, and Economic                                         
03       Development, through the film production promotion program, shall assist the                                      
04       Department of Revenue in the administration of the Alaska film production incentive                               
05       program (AS 44.25.110).                                                                                           
06    * Sec. 30. AS 44.33.232, 44.33.233, 44.33.234, 44.33.235, 44.33.236, 44.33.237, 44.33.238,                         
07 and 44.33.239 are repealed.                                                                                             
08    * Sec. 31. AS 43.98.030; AS 44.25.100, 44.25.105, 44.25.110, 44.25.115, 44.25.120,                                 
09 44.25.125, 44.25.130, 44.25.140, 44.25.145, 44.25.150, 44.25.190; and AS 44.33.231(c) are                               
10 repealed.                                                                                                               
11    * Sec. 32. AS 44.25.135 is repealed.                                                                               
12    * Sec. 33. AS 24.20.271(11) is repealed.                                                                           
13    * Sec. 34. Sections 3, 4, 5, and 6, ch. 63, SLA 2008, are repealed.                                                
14    * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16       INCENTIVE CREDIT FOR FIRST EPISODIC SCRIPTED TELEVISION                                                           
17 PRODUCTION IN THE STATE. (a) Subject to appropriation, the first episodic scripted                                      
18 television production produced after the effective date of this section is entitled to an                               
19 additional film production tax credit of six percent of the total qualified expenditures incurred                       
20 in the state. The production is eligible for the film production tax credit in this section after 16                    
21 episodes have been completed and are ready for television broadcast.                                                    
22       (b)  The credit in this section shall be administered in the same manner as the film                              
23 production tax credit under AS 44.25.100 - 44.25.190.                                                                   
24       (c)  In this section, "episodic scripted television production" means a production for                            
25 television broadcast that is based on a script written before production; "episodic scripted                            
26 television production" does not include what is commonly referred to as reality television, for                         
27 which actors in the production do not perform using previously scripted dialogue or actions.                            
28    * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to                         
29 read:                                                                                                                   
30       TRANSITION. (a) The employee or employees in the film office in the Department of                                 
31 Commerce, Community, and Economic Development shall be transferred to the Department                                    
01 of Revenue on the effective date of this section and shall be the staff authorized for the Alaska                       
02 Film Incentive Review Commission established by AS 44.25.145, enacted by sec. 28 of this                                
03 Act. The Alaska Film Incentive Review Commission shall designate an executive director as                               
04 soon as practicable after the effective date of this section.                                                           
05       (b)  Subject to AS 43.98.030(f), as amended by sec. 26 of this Act, secs. 31 and 32 of                            
06 this Act do not prohibit the film office from determining a film production's qualified                                 
07 expenditures, awarding a tax credit, or reviewing a tax credit under the provisions repealed by                         
08 secs. 31 and 32 of this Act that has received a notice of qualification under AS 44.25.120(b),                          
09 enacted by sec. 28 of this Act, before July 1, 2023.                                                                    
10       (c)  A film production tax credit may be used to offset taxes imposed under the                                   
11 provisions identified in AS 43.98.030(c), as amended by sec. 24 of this Act, or sold or                                 
12 exchanged for a transferable tax credit certificate under AS 43.98.030(a), as amended by sec.                           
13 22 of this Act, within three years after being provided by the Department of Revenue,                                   
14 notwithstanding the repeal of AS 43.98.030 in sec. 31 of this Act.                                                      
15       (d)  A film production tax credit that is being withheld under AS 44.25.125(h), enacted                           
16 by sec. 28 of this Act, may continue to be withheld by the film office, notwithstanding the                             
17 repeal of AS 44.25.125 in sec. 31 of this Act.                                                                          
18    * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to                         
19 read:                                                                                                                   
20       NOTIFICATION. When the amount of tax credits provided under AS 43.98.030(f), as                                   
21 amended by sec. 26 of this Act, in the aggregate and the estimated amount of tax credits that                           
22 could be claimed based on notices of qualification issued by the film office under                                      
23 AS 44.33.234, repealed by sec. 30 of this Act, together equal $100,000,000 before July 1,                               
24 2013, or under AS 44.25.120, enacted by sec. 28 of this Act, together equal $200,000,000                                
25 after June 30, 2013, and before July 1, 2023, the commissioner of revenue shall notify the                              
26 presiding officers of each house of the legislature and the revisor of statutes in writing.                             
27    * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                   
29       NONSEVERABILITY. Notwithstanding AS 01.10.030, the provisions of secs. 1 and                                      
30 20 - 30 of this Act are not severable from each other if a provision in secs. 1 and 20 - 30 of                          
31 this Act is held invalid.                                                                                               
01    * Sec. 39. Sections 7 and 8, ch. 63, SLA 2008, are repealed.                                                       
02    * Sec. 40. Section 31 of this Act takes effect on the earlier of the following:                                    
03            (1)  July 1, 2023; or                                                                                        
04            (2)  the date the commissioner of revenue notifies the presiding officers of each                            
05 house of the legislature and the revisor of statutes in writing of the $200,000,000 amount after                        
06 June 30, 2013, and before July 1, 2023, under sec. 37 of this Act.                                                      
07    * Sec. 41. Section 32 of this Act takes effect on the earlier of the following:                                    
08            (1)  July 1, 2029; or                                                                                        
09            (2)  six years after the date the commissioner of revenue notifies the presiding                             
10 officers of each house of the legislature and the revisor of statutes in writing of the                                 
11 $200,000,000 amount after June 30, 2013, and before July 1, 2023, under sec. 37 of this Act.                            
12    * Sec. 42. Section 33 of this Act takes effect January 1, 2022.                                                    
13    * Sec. 43. Sections 1, 20 - 30, and 34 - 39 of this Act take effect July 1, 2013.                                  
14    * Sec. 44. Sections 6 and 7 of this Act take effect July 1, 2012.                                                  
15    * Sec. 45. Section 8 of this Act takes effect July 1, 2023.                                                        
16    * Sec. 46. Sections 10 - 15, 18, and 19 of this Act take effect January 1, 2013.                                   
17    * Sec. 47. Except as provided in secs. 40 - 46 of this Act, this Act takes effect immediately                      
18 under AS 01.10.070(c).