SCS CSHB 155(L&C): "An Act repealing an exploration incentive credit; amending the calculation of adjusted gross income for purposes of the tax on gambling activities aboard large passenger vessels; repealing a provision allowing an investigation expense under the Alaska Small Loans Act to be in place of a fee required under the Alaska Business License Act; repealing the amount that may be deducted from the tobacco excise tax to cover the expense of accounting and filing for the monthly tax return; repealing the discount on cigarette tax stamps provided as compensation for affixing the stamps to packages; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 155(L&C) 01 "An Act repealing an exploration incentive credit; amending the calculation of adjusted 02 gross income for purposes of the tax on gambling activities aboard large passenger 03 vessels; repealing a provision allowing an investigation expense under the Alaska Small 04 Loans Act to be in place of a fee required under the Alaska Business License Act; 05 repealing the amount that may be deducted from the tobacco excise tax to cover the 06 expense of accounting and filing for the monthly tax return; repealing the discount on 07 cigarette tax stamps provided as compensation for affixing the stamps to packages; and 08 providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 41.09.010(a) is amended to read: 11 (a) The [UNDER AN INCENTIVE PROGRAM DISTINCT FROM THE 12 EXPLORATION INCENTIVE CREDIT AUTHORIZED BY AS 38.05.180(i), THE]
01 commissioner may extend to a qualified applicant an exploration incentive credit for 02 each of the following activities performed on land in the state, regardless of whether 03 the land is state-owned land: 04 (1) geophysical work [ON LAND THAT IS NOT SUBJECT TO A 05 CREDIT UNDER AS 38.05.180(i)]; 06 (2) drilling a stratigraphic test well; and 07 (3) drilling an exploratory well. 08 * Sec. 2. AS 41.09.010(b) is amended to read: 09 (b) An exploration incentive credit extended under (a) of this section may be 10 applied against 11 (1) [A PAYMENT OR OBLIGATION AGAINST WHICH A 12 CREDIT AUTHORIZED BY AS 38.05.180(i) MAY BE CLAIMED; 13 (2)] taxes payable under AS 43.20; and 14 (2) [(3)] oil and gas bonus payments due the state under 15 AS 38.05.180(f). 16 * Sec. 3. AS 43.35.210 is amended to read: 17 Sec. 43.35.210. Tax on gambling activities. There is imposed on the operator 18 of gaming or gambling activities aboard large passenger vessels in the state a tax of 33 19 percent of the adjusted gross income from those activities. "Adjusted gross income" 20 means gross income less prizes awarded and [FEDERAL AND] municipal taxes paid 21 or owed on the income. The tax shall be collected and is due and payable to the 22 Department of Revenue in the manner and at the times required by the Department of 23 Revenue. 24 * Sec. 4. AS 43.50.590(a) is amended to read: 25 (a) The department shall adopt procedures for a refund or credit to a licensee 26 in the amount of the denominated value [, LESS THE DISCOUNT GIVEN UNDER 27 AS 43.50.540,] for 28 (1) unused or damaged stamps; 29 (2) stamps affixed to cigarette packages that have become unfit for use 30 or sale, are destroyed, or are returned to the manufacturer for credit or replacement if 31 the licensee provides proof acceptable to the department that the cigarettes have not
01 been and will not be consumed in this state; or 02 (3) stamps affixed to cigarette packages that are sold or distributed 03 outside the state if the licensee provides proof acceptable to the department that the 04 cigarettes have not been and will not be consumed in this state and the licensee is 05 properly licensed in the jurisdictions outside the state where the sales or distributions 06 are made. 07 * Sec. 5. AS 43.55.011(m) is amended to read: 08 (m) Notwithstanding any contrary provision of [AS 38.05.180(i),] 09 AS 41.09.010, AS 43.55.024, or 43.55.025, the department shall provide by regulation 10 a method to ensure that, for a calendar year for which a producer's tax liability is 11 limited by (j), (k), or (o) of this section, tax credits based on a lease expenditure 12 incurred before January 1, 2011, that are otherwise available under [AS 38.05.180(i),] 13 AS 41.09.010, AS 43.55.024, or 43.55.025 and allocated to gas subject to the 14 limitations in (j), (k), and (o) of this section are accounted for as though the credits had 15 been applied first against a tax liability calculated without regard to the limitations 16 under (j), (k), and (o) of this section so as to reduce the tax liability to the maximum 17 amount provided for under (j) or (o) of this section for the production of gas or (k) of 18 this section for the production of oil. The regulation must provide for a reasonable 19 method to allocate tax credits to gas subject to (j) and (o) of this section. Only the 20 amount of a tax credit remaining after the accounting provided for under this 21 subsection may be used for a later calendar year, transferred to another person, or 22 applied against a tax levied on the production of oil or gas not subject to (j), (k), or (o) 23 of this section to the extent otherwise allowed. 24 * Sec. 6. AS 43.55.023(a) is amended to read: 25 (a) A producer or explorer may take a tax credit for a qualified capital 26 expenditure as follows: 27 (1) notwithstanding that a qualified capital expenditure may be a 28 deductible lease expenditure for purposes of calculating the production tax value of oil 29 and gas under AS 43.55.160(a), unless a credit for that expenditure is taken under 30 [AS 38.05.180(i),] AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or 31 explorer that incurs a qualified capital expenditure may also elect to apply a tax credit
01 against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that 02 expenditure; 03 (2) a producer or explorer may take a credit for a qualified capital 04 expenditure incurred in connection with geological or geophysical exploration or in 05 connection with an exploration well only if the producer or explorer 06 (A) agrees, in writing, to the applicable provisions of 07 AS 43.55.025(f)(2); and 08 (B) submits to the Department of Natural Resources all data 09 that would be required to be submitted under AS 43.55.025(f)(2); 10 (3) a credit for a qualified capital expenditure incurred to explore for, 11 develop, or produce oil or gas deposits located north of 68 degrees North latitude may 12 be taken only if the expenditure is incurred before January 1, 2014. 13 * Sec. 7. AS 43.55.023(l) is amended to read: 14 (l) A producer or explorer may apply for a tax credit for a well lease 15 expenditure incurred in the state south of 68 degrees North latitude after June 30, 16 2010, as follows: 17 (1) notwithstanding that a well lease expenditure incurred in the state 18 south of 68 degrees North latitude may be a deductible lease expenditure for purposes 19 of calculating the production tax value of oil and gas under AS 43.55.160(a), unless a 20 credit for that expenditure is taken under (a) of this section, [AS 38.05.180(i),] 21 AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or explorer that incurs a 22 well lease expenditure in the state south of 68 degrees North latitude may elect to 23 apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 40 percent 24 of that expenditure; a tax credit under this paragraph may be applied for a single 25 calendar year; 26 (2) a producer or explorer may take a credit for a well lease 27 expenditure incurred in the state south of 68 degrees North latitude in connection with 28 geological or geophysical exploration or in connection with an exploration well only if 29 the producer or explorer 30 (A) agrees, in writing, to the applicable provisions of 31 AS 43.55.025(f)(2); and
01 (B) submits to the Department of Natural Resources all data 02 that would be required to be submitted under AS 43.55.025(f)(2). 03 * Sec. 8. AS 06.20.030(c); AS 38.05.180(i); AS 41.09.030; AS 43.50.330(b), 43.50.540(c), 04 and 43.50.540(h) are repealed. 05 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 TRANSITION. The repeal of AS 38.05.180(i) by sec. 8 of this Act does not prohibit 08 the Department of Natural Resources from issuing a credit for an expenditure incurred before 09 the effective date of sec. 8 of this Act. A credit issued under former AS 38.05.180(i) before 10 the effective date of sec. 8 of this Act may, during the period established by the commissioner 11 under former AS 38.05.180(i), be assigned or used to offset taxes imposed under the 12 provisions identified in former AS 38.05.180(i). 13 * Sec. 10. Section 3 of this Act takes effect January 1, 2017. 14 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect July 1, 2016.