SB 109: "An Act providing for a tax credit for investment in a facility that produces liquids from gas, coal, or biomass."
00 SENATE BILL NO. 109 01 "An Act providing for a tax credit for investment in a facility that produces liquids from 02 gas, coal, or biomass." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.20 is amended by adding a new section to article 1 to read: 05 Sec. 43.20.047. Special investment tax credit to produce liquids from gas, 06 coal, or biomass. (a) Subject to (b) of this section, for purposes of calculating eligible 07 taxes, the taxpayer may apply as a credit against eligible taxes the following 08 percentage on only the first $1,000,000,000 of investment in the state for each taxable 09 year after December 31, 2010, for a facility that produces liquids from gas, coal, or 10 biomass: (1) 100 percent on the first $50,000,000 of investment; (2) 80 percent on 11 investment over $50,000,000 but not exceeding $100,000,000; (3) 70 percent on 12 investment over $100,000,000 but not exceeding $150,000,000; (4) 60 percent on 13 investment over $150,000,000 but not exceeding $200,000,000; and (5) 40 percent on 14 investment over $200,000,000 but not exceeding $1,000,000,000. A credit may not be
01 allowed under this subsection for leased property. The credit under this subsection 02 may not exceed $475,000,000 for a single facility. 03 (b) A taxpayer may not claim an investment tax credit under (a) of this section 04 unless the facility that produces liquids from gas, coal, or biomass or the mining 05 project began operation and production after December 31, 2010. A facility for 06 producing liquids from gas, coal, or biomass or a mining project is considered to have 07 begun operation and production when the first liquids from gas, coal, or biomass or 08 the first minerals are produced that are ultimately either sold or transferred for further 09 processing or ultimate use. 10 (c) The investment tax credit for a taxable year allowed by (a) of this section 11 may not exceed 60 percent of the eligible tax liability. Any unused portion of the 12 investment tax credit may be carried forward. 13 (d) A tax credit under this section may not be claimed for investments made 14 after December 31, 2020. 15 (e) In this section, 16 (1) "biomass" has the meaning given in 26 U.S.C. 45K(c)(3) (Internal 17 Revenue Code); 18 (2) "facility for producing liquids" means the integrated plant, 19 facilities, and equipment used for producing liquids from natural gas, coal, or biomass; 20 (3) "liquids" means a product stream of commercial quality that is a 21 mixture of hydrocarbon molecules, each of which has between five and 20 carbon 22 atoms with attached hydrogen atoms, none of which contain oxygen or other elements.