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CSHB 111(FIN): "An Act relating to the oil and gas production tax, tax payments, and credits; relating to interest applicable to delinquent oil and gas production tax; relating to carried-forward lease expenditures based on losses and limiting those lease expenditures to an amount equal to the gross value at the point of production of oil and gas produced from the lease or property where the lease expenditure was incurred; relating to information concerning tax credits, lease expenditures, and oil and gas taxes; relating to the disclosure of that information to the public; relating to an adjustment in the gross value at the point of production; relating to a legislative working group; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 111(FIN)                                                                    
01 "An Act relating to the oil and gas production tax, tax payments, and credits; relating to                              
02 interest applicable to delinquent oil and gas production tax; relating to carried-forward                               
03 lease expenditures based on losses and limiting those lease expenditures to an amount                                   
04 equal to the gross value at the point of production of oil and gas produced from the lease                              
05 or property where the lease expenditure was incurred; relating to information                                           
06 concerning tax credits, lease expenditures, and oil and gas taxes; relating to the                                      
07 disclosure of that information to the public; relating to an adjustment in the gross value                              
08 at the point of production; relating to a legislative working group; and providing for an                               
09 effective date."                                                                                                        
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
11    * Section 1. AS 31.05.030(n) is amended to read:                                                                   
12            (n)  Upon request of the commissioner of revenue, the commission shall                                       
01 determine the commencement of regular production from a lease or property for                                           
02       purposes of AS 43.55.160(f) [AND (g)].                                                                            
03    * Sec. 2. AS 40.25.100(a) is amended to read:                                                                      
04 (a)  Information in the possession of the Department of Revenue that discloses                                          
05 the particulars of the business or affairs of a taxpayer or other person, including                                     
06 information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement                                    
07 under AS 38.05.020(b)(12), is not a matter of public record, except as provided in                                      
08 AS 43.05.230(i) - (n) [AS 43.05.230(i) - (l)] or for purposes of investigation and law                              
09 enforcement. The information shall be kept confidential except when its production is                                   
10 required in an official investigation, administrative adjudication under AS 43.05.405 -                                 
11 43.05.499, or court proceeding. These restrictions do not prohibit the publication of                                   
12 statistics presented in a manner that prevents the identification of particular reports                                 
13 and items, prohibit the publication of tax lists showing the names of taxpayers who are                                 
14 delinquent and relevant information that may assist in the collection of delinquent                                     
15 taxes, or prohibit the publication of records, proceedings, and decisions under                                         
16       AS 43.05.405 - 43.05.499.                                                                                       
17    * Sec. 3. AS 43.05.225 is amended to read:                                                                         
18            Sec. 43.05.225. Interest. Unless otherwise provided,                                                       
19                 (1)  a delinquent tax                                                                                   
20 (A)  under this title, before January 1, 2014, bears interest in                                                        
21 each calendar quarter at the rate of five percentage points above the annual rate                                       
22 charged member banks for advances by the 12th Federal Reserve District as of                                            
23 the first day of that calendar quarter, or at the annual rate of 11 percent,                                            
24            whichever is greater, compounded quarterly as of the last day of that quarter;                               
25 (B)  under this title, on and after January 1, 2014, except as                                                          
26 provided in (C) of this paragraph, bears interest in each calendar quarter at the                                       
27 rate of three percentage points above the annual rate charged member banks                                              
28 for advances by the 12th Federal Reserve District as of the first day of that                                           
29            calendar quarter;                                                                                            
30                      (C)  under AS 43.55, on and after January 1, 2017,                                                 
31 [(i)  FOR THE FIRST THREE YEARS AFTER A TAX                                                                             
01 BECOMES DELINQUENT,] bears interest in each calendar quarter at                                                         
02 the rate of seven percentage points above the annual rate charged                                                       
03 member banks for advances by the 12th Federal Reserve District as of                                                    
04 the first day of that calendar quarter, compounded quarterly as of the                                                  
05                 last day of that quarter; [AND                                                                          
06                           (ii)  AFTER THE FIRST THREE YEARS AFTER A                                                     
07                 TAX BECOMES DELINQUENT, DOES NOT BEAR INTEREST;]                                                        
08                 (2)  the interest rate is 12 percent a year for                                                         
09                      (A)  delinquent fees payable under AS 05.15.095(c); and                                            
10 (B)  unclaimed property that is not timely paid or delivered, as                                                        
11            allowed by AS 34.45.470(a).                                                                                  
12    * Sec. 4. AS 43.05.230(l) is amended to read:                                                                      
13 (l)  The [FOR TAX CREDIT CERTIFICATES PURCHASED BY THE                                                              
14 DEPARTMENT IN THE PRECEDING CALENDAR YEAR UNDER AS 43.55.028,                                                           
15 THE] department shall make the following information public by April 30 of each                                         
16       year:                                                                                                             
17 (1)  for tax credit certificates issued or purchased by the                                                         
18       department in the preceding calendar year under AS 43.55.028:                                                 
19 (A)  the name of each person to which a transferable tax                                                        
20 certificate was issued or from which the department purchased a transferable                                        
21            tax credit certificate; and                                                                                  
22 (B) [(2)]  the aggregate amount of the tax credit certificates                                                      
23            purchased from the person in the preceding calendar year;                                                
24 (C)  the aggregate amount of the tax credit certificates                                                            
25            issued to the person in the preceding calendar year; and                                                 
26 (2)  unless otherwise prohibited by law, information submitted                                                      
27       during the previous calendar year under AS 43.55.030(a)(10) and (e)(3).                                     
28    * Sec. 5. AS 43.05.230 is amended by adding new subsections to read:                                               
29            (m)  The department may disclose information otherwise publicly available                                    
30                 (1)  on a return filed for a tax due under AS 43.55; or                                                 
31 (2)  related to a credit received under AS 43.20.046, 43.20.047,                                                        
01       43.20.049, 43.20.052, or 43.20.053.                                                                               
02 (n)  The name of each person claiming a credit, the amount of credit received                                           
03 for each oil refinery, and a description of the expenditures for which each credit is                                   
04 claimed under AS 43.20.053 is public information. The department shall make the                                         
05       following information public by April 30 of each year:                                                            
06                 (1)  the name of each person who claimed a tax credit under                                             
07       AS 43.20.053 in the preceding calendar year;                                                                      
08                 (2)  for each refinery for which a tax credit was claimed under                                         
09       AS 43.20.053 in the preceding calendar year,                                                                      
10 (A)  the aggregate amount of tax credits claimed for that                                                               
11            refinery;                                                                                                    
12 (B)  a description of any potential benefits to the state or                                                            
13            residents of the state, including the estimated monetary value;                                              
14 (3)  a brief description of the qualified infrastructure expenditures for                                               
15 which each tax credit claimed under AS 43.20.053 in the preceding calendar year was                                     
16       claimed; and                                                                                                      
17 (4)  for each refinery for which an expenditure is the basis of a credit                                                
18 under AS 43.20.053, the aggregate amount of unused tax credits or portions of tax                                       
19       credits.                                                                                                        
20    * Sec. 6. AS 43.55.011(e) is amended to read:                                                                      
21 (e)  There is levied on the producer of oil or gas a tax for all oil and gas                                            
22 produced each calendar year from each lease or property in the state, less any oil and                                  
23 gas the ownership or right to which is exempt from taxation or constitutes a                                            
24 landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as                                    
25 otherwise provided under (f), (j), (k), (o), and (p) of this section, for oil and gas                                   
26       produced                                                                                                          
27                 (1)  before January 1, 2014, the tax is equal to the sum of                                             
28 (A)  the annual production tax value of the taxable oil and gas                                                         
29            as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and                                         
30 (B)  the sum, over all months of the calendar year, of the tax                                                          
31            amounts determined under (g) of this section;                                                                
01                 (2)  on and after January 1, 2014, and before January 1, 2018 [2022],                               
02       the tax is equal to the annual production tax value of the taxable oil and gas as                                 
03       calculated under AS 43.55.160(a)(1) multiplied by 35 percent;                                                     
04                 (3)  on and after January 1, 2018, and before January 1, 2022, the                                  
05       tax is equal to the sum of                                                                                    
06                      (A)  the annual production tax value of the taxable oil and                                    
07            gas as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and                                 
08                      (B)  the sum, over all the months of the calendar year, of the                                 
09            amounts determined under (g) of this section;                                                            
10                 (4)  on and after January 1, 2022, the tax for                                                      
11                      (A)  oil is equal to the sum of                                                                
12 (i)  the annual production tax value of the taxable oil as                                                          
13 calculated under AS 43.55.160(h)(1) [AS 43.55.160(h)] multiplied by                                                 
14                 25 [35] percent; and                                                                            
15 (ii)  the sum, over all the months of the calendar                                                                  
16                 year, of the amounts determined under (g) of this section;                                          
17 (B)  gas is equal to 13 percent of the gross value at the point of                                                      
18 production of the taxable gas; if the gross value at the point of production of                                         
19 gas produced from a lease or property is less than zero, that gross value at the                                        
20            point of production is considered zero for purposes of this subparagraph.                                    
21    * Sec. 7. AS 43.55.011(g) is amended to read:                                                                      
22            (g)  For purposes of (e) of this section,                                                                
23 (1)  before January 1, 2014, for [FOR] each month of a calendar year                                                
24 [BEFORE 2014] for which the producer's average monthly production tax value under                                       
25 AS 43.55.160(a)(2) of a BTU equivalent barrel of the taxable oil and gas is more than                                   
26 $30, the amount of tax for purposes of (e)(1)(B) of this section is determined by                                       
27 multiplying the monthly production tax value of the taxable oil and gas produced                                        
28       during the month by the tax rate calculated as follows:                                                           
29 (A) [(1)]  if the producer's average monthly production tax                                                         
30 value of a BTU equivalent barrel of the taxable oil and gas for the month is not                                        
31 more than $92.50, the tax rate is 0.4 percent multiplied by the number that                                             
01 represents the difference between that average monthly production tax value of                                          
02            a BTU equivalent barrel and $30; or                                                                          
03 (B) [(2)]  if the producer's average monthly production tax value                                                   
04 of a BTU equivalent barrel of the taxable oil and gas for the month is more                                             
05 than $92.50, the tax rate is the sum of 25 percent and the product of 0.1 percent                                       
06 multiplied by the number that represents the difference between the average                                             
07 monthly production tax value of a BTU equivalent barrel and $92.50, except                                              
08 that the sum determined under this subparagraph [PARAGRAPH] may not                                                 
09            exceed 50 percent;                                                                                       
10 (2)  on or after January 1, 2018, and before January 1, 2022, for                                                   
11 each month of a calendar year for which the producer's production tax value                                         
12 under AS 43.55.160(a)(2) of a BTU equivalent barrel of the taxable oil and gas is                                   
13 more than $60, the difference between the monthly production tax value of a                                         
14 BTU equivalent barrel and $60 multiplied by the volume of oil and gas produced                                      
15       by the producer for the month multiplied by 15 percent;                                                       
16 (3)  on or after January 1, 2022, for each month of a calendar year                                                 
17 for which the producer's production tax value under AS 43.55.160(h)(2) of a BTU                                     
18 equivalent barrel of taxable oil is more than $60, the difference between the                                       
19 monthly production tax value of a BTU equivalent barrel and $60 multiplied by                                       
20 the volume of oil produced by the producer for the month multiplied by 15                                           
21       percent.                                                                                                    
22    * Sec. 8. AS 43.55.011 is amended by adding new subsections to read:                                               
23 (q)  Except as otherwise provided in this subsection, a credit under this chapter                                       
24 may not be applied to reduce the tax determined under (f) of this section. A credit                                     
25 under AS 43.55.024(c) may reduce the tax determined under (f) of this section, but not                                  
26 below zero. A credit under AS 43.55.024(i) may reduce the tax determined under (f)                                      
27       of this section, but not below                                                                                    
28 (1)  for gas produced on and after January 1, 2018, and before                                                          
29       January 1, 2022,                                                                                                  
30 (A)  four percent of the adjusted gross value at the point of                                                           
31 production when the average price per barrel for Alaska North Slope crude oil                                           
01 for sale on the United States West Coast during the calendar year for which the                                         
02            tax is due is more than $25;                                                                                 
03 (B)  three percent of the adjusted gross value at the point of                                                          
04 production when the average price per barrel for Alaska North Slope crude oil                                           
05 for sale on the United States West Coast during the calendar year for which the                                         
06            tax is due is more than $20 but not more than $25;                                                           
07 (C)  two percent of the adjusted gross value at the point of                                                            
08 production when the average price per barrel for Alaska North Slope crude oil                                           
09 for sale on the United States West Coast during the calendar year for which the                                         
10            tax is due is more than $17.50 but not more than $20;                                                        
11 (D)  one percent of the adjusted gross value at the point of                                                            
12 production when the average price per barrel for Alaska North Slope crude oil                                           
13 for sale on the United States West Coast during the calendar year for which the                                         
14            tax is due is more than $15 but not more than $17.50; or                                                     
15 (E)  zero percent of the adjusted gross value at the point of                                                           
16 production when the average price per barrel for Alaska North Slope crude oil                                           
17 for sale on the United States West Coast during the calendar year for which the                                         
18            tax is due is $15 or less;                                                                                   
19                 (2)  for oil produced on and after January 1, 2018,                                                     
20 (A)  four percent of the adjusted gross value at the point of                                                           
21 production when the average price per barrel for Alaska North Slope crude oil                                           
22 for sale on the United States West Coast during the calendar year for which the                                         
23            tax is due is more than $25;                                                                                 
24 (B)  three percent of the adjusted gross value at the point of                                                          
25 production when the average price per barrel for Alaska North Slope crude oil                                           
26 for sale on the United States West Coast during the calendar year for which the                                         
27            tax is due is more than $20 but not more than $25;                                                           
28 (C)  two percent of the adjusted gross value at the point of                                                            
29 production when the average price per barrel for Alaska North Slope crude oil                                           
30 for sale on the United States West Coast during the calendar year for which the                                         
31            tax is due is more than $17.50 but not more than $20;                                                        
01 (D)  one percent of the adjusted gross value at the point of                                                            
02 production when the average price per barrel for Alaska North Slope crude oil                                           
03 for sale on the United States West Coast during the calendar year for which the                                         
04            tax is due is more than $15 but not more than $17.50; or                                                     
05 (E)  zero percent of the adjusted gross value at the point of                                                           
06 production when the average price per barrel for Alaska North Slope crude oil                                           
07 for sale on the United States West Coast during the calendar year for which the                                         
08            tax is due is $15 or less.                                                                                 
09 (r)  In (q) of this section, "adjusted gross value at the point of production"                                          
10 means the gross value at the point of production less a reduction from the gross value                                  
11       at the point of production under AS 43.55.160(f).                                                                 
12    * Sec. 9. AS 43.55.014(b) is amended to read:                                                                      
13 (b)  A production tax levied by this section is equal to 13 percent of the gas                                          
14 otherwise taxable under AS 43.55.011(e)(4) [AS 43.55.011(e)(3)] produced from each                                  
15 oil and gas lease to which an effective election under (a) of this section applies, when                                
16 and as that gas is produced. The producer shall pay the tax in gas by delivering that 13                                
17       percent of the gas to the state at the point of production.                                                       
18    * Sec. 10. AS 43.55.020(a) is amended to read:                                                                     
19 (a)  For a calendar year, a producer subject to tax under AS 43.55.011 shall pay                                        
20       the tax as follows:                                                                                               
21 (1)  for oil and gas produced before January 1, 2014, an installment                                                    
22 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied                                  
23 as allowed by law, is due for each month of the calendar year on the last day of the                                    
24 following month; except as otherwise provided under (2) of this subsection, the                                         
25 amount of the installment payment is the sum of the following amounts, less 1/12 of                                     
26 the tax credits that are allowed by law to be applied against the tax levied by                                         
27 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may                                    
28       not be less than zero:                                                                                            
29 (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                                              
30 produced from leases or properties in the state outside the Cook Inlet                                                  
31 sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                                          
01            the greater of                                                                                               
02                           (i)  zero; or                                                                                 
03 (ii)  the sum of 25 percent and the tax rate calculated for                                                             
04 the month under AS 43.55.011(g) multiplied by the remainder obtained                                                    
05 by subtracting 1/12 of the producer's adjusted lease expenditures for the                                               
06 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
07 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
08 at the point of production of the oil and gas produced from the leases or                                               
09 properties during the month for which the installment payment is                                                        
10                 calculated;                                                                                             
11 (B)  for oil and gas produced from leases or properties subject                                                         
12            to AS 43.55.011(f), the greatest of                                                                          
13                           (i)  zero;                                                                                    
14 (ii)  zero percent, one percent, two percent, three                                                                     
15 percent, or four percent, as applicable, of the gross value at the point of                                             
16 production of the oil and gas produced from the leases or properties                                                    
17                 during the month for which the installment payment is calculated; or                                    
18 (iii)  the sum of 25 percent and the tax rate calculated for                                                            
19 the month under AS 43.55.011(g) multiplied by the remainder obtained                                                    
20 by subtracting 1/12 of the producer's adjusted lease expenditures for the                                               
21 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
22 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
23 at the point of production of the oil and gas produced from those leases                                                
24 or properties during the month for which the installment payment is                                                     
25                 calculated;                                                                                             
26 (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                                        
27            each lease or property, the greater of                                                                       
28                           (i)  zero; or                                                                                 
29 (ii)  the sum of 25 percent and the tax rate calculated for                                                             
30 the month under AS 43.55.011(g) multiplied by the remainder obtained                                                    
31 by subtracting 1/12 of the producer's adjusted lease expenditures for the                                               
01 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
02 deductible under AS 43.55.160 for the oil or gas, respectively,                                                         
03 produced from the lease or property from the gross value at the point of                                                
04 production of the oil or gas, respectively, produced from the lease or                                                  
05 property during the month for which the installment payment is                                                          
06                 calculated;                                                                                             
07                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
08 (i)  the sum of 25 percent and the tax rate calculated for                                                              
09 the month under AS 43.55.011(g) multiplied by the remainder obtained                                                    
10 by subtracting 1/12 of the producer's adjusted lease expenditures for the                                               
11 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
12 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
13 at the point of production of the oil and gas produced from the leases or                                               
14 properties during the month for which the installment payment is                                                        
15                 calculated, but not less than zero; or                                                                  
16 (ii)  four percent of the gross value at the point of                                                                   
17 production of the oil and gas produced from the leases or properties                                                    
18                 during the month, but not less than zero;                                                               
19 (2)  an amount calculated under (1)(C) of this subsection for oil or gas                                                
20 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by                                          
21 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as                                   
22 applicable, for gas or set out in AS 43.55.011(k) for oil, but substituting in                                          
23 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable                                   
24 gas produced during the month for the amount of taxable gas produced during the                                         
25 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced                                    
26       during the month for the amount of taxable oil produced during the calendar year;                                 
27 (3)  an installment payment of the estimated tax levied by                                                              
28 AS 43.55.011(i) for each lease or property is due for each month of the calendar year                                   
29 on the last day of the following month; the amount of the installment payment is the                                    
30       sum of                                                                                                            
31 (A)  the applicable tax rate for oil provided under                                                                     
01 AS 43.55.011(i), multiplied by the gross value at the point of production of the                                        
02 oil taxable under AS 43.55.011(i) and produced from the lease or property                                               
03            during the month; and                                                                                        
04 (B)  the applicable tax rate for gas provided under                                                                     
05 AS 43.55.011(i), multiplied by the gross value at the point of production of the                                        
06 gas taxable under AS 43.55.011(i) and produced from the lease or property                                               
07            during the month;                                                                                            
08 (4)  any amount of tax levied by AS 43.55.011, net of any credits                                                       
09 applied as allowed by law, that exceeds the total of the amounts due as installment                                     
10 payments of estimated tax is due on March 31 of the year following the calendar year                                    
11       of production;                                                                                                    
12 (5)  for oil and gas produced on and after January 1, 2014, and before                                                  
13 January 1, 2018 [JANUARY 1, 2022], an installment payment of the estimated tax                                      
14 levied by AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for                                 
15 each month of the calendar year on the last day of the following month; except as                                       
16 otherwise provided under (7) [(6)] of this subsection, the amount of the installment                                
17 payment is the sum of the following amounts, less 1/12 of the tax credits that are                                      
18 allowed by law to be applied against the tax levied by AS 43.55.011(e) for the                                          
19       calendar year, but the amount of the installment payment may not be less than zero:                               
20 (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                                              
21 produced from leases or properties in the state outside the Cook Inlet                                                  
22 sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                                          
23            the greater of                                                                                               
24                           (i)  zero; or                                                                                 
25 (ii)  35 percent multiplied by the remainder obtained by                                                                
26 subtracting 1/12 of the producer's adjusted lease expenditures for the                                                  
27 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
28 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
29 at the point of production of the oil and gas produced from the leases or                                               
30 properties during the month for which the installment payment is                                                        
31                 calculated;                                                                                             
01                      (B)  for oil and gas produced from leases or properties subject                                    
02            to AS 43.55.011(f), the greatest of                                                                          
03                           (i)  zero;                                                                                    
04 (ii)  the percentage applicable under AS 43.55.011(f)                                                               
05 [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE                                                                          
06 PERCENT, OR FOUR PERCENT, AS APPLICABLE,] of the gross                                                                  
07 value at the point of production of the oil and gas produced from the                                                   
08 leases or properties during the month for which the installment                                                         
09                 payment is calculated; or                                                                               
10 (iii)  35 percent multiplied by the remainder obtained by                                                               
11 subtracting 1/12 of the producer's adjusted lease expenditures for the                                                  
12 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
13 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
14 at the point of production of the oil and gas produced from those leases                                                
15 or properties during the month for which the installment payment is                                                     
16 calculated, except that, for the purposes of this calculation, a reduction                                              
17 from the gross value at the point of production may apply for oil and                                                   
18                 gas subject to AS 43.55.160(f) [OR (g)];                                                                
19 (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                                        
20            each lease or property, the greater of                                                                       
21                           (i)  zero; or                                                                                 
22 (ii)  35 percent multiplied by the remainder obtained by                                                                
23 subtracting 1/12 of the producer's adjusted lease expenditures for the                                                  
24 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
25 deductible under AS 43.55.160 for the oil or gas, respectively,                                                         
26 produced from the lease or property from the gross value at the point of                                                
27 production of the oil or gas, respectively, produced from the lease or                                                  
28 property during the month for which the installment payment is                                                          
29                 calculated;                                                                                             
30                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
31 (i)  35 percent multiplied by the remainder obtained by                                                                 
01 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 for the oil and gas under AS 43.55.160 from the gross value                                                  
04 at the point of production of the oil and gas produced from the leases or                                               
05 properties during the month for which the installment payment is                                                        
06                 calculated, but not less than zero; or                                                                  
07 (ii)  four percent of the gross value at the point of                                                                   
08 production of the oil and gas produced from the leases or properties                                                    
09                 during the month, but not less than zero;                                                               
10 (6)  for oil and gas produced on and after January 1, 2018, and                                                     
11 before January 1, 2022, an installment payment of the estimated tax levied by                                       
12 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each                                  
13 month of the calendar year on the last day of the following month; except as                                        
14 otherwise provided under (7) of this subsection, the amount of the installment                                      
15 payment is the sum of the following amounts, less 1/12 of the tax credits that are                                  
16 allowed by law to be applied against the tax levied by AS 43.55.011(e) for the                                      
17 calendar year, but the amount of the installment payment may not be less than                                       
18       zero:                                                                                                         
19 (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                                          
20 produced from leases or properties in the state outside the Cook Inlet                                              
21 sedimentary basin, other than leases or properties subject to                                                       
22            AS 43.55.011(f), the greater of                                                                          
23                           (i)  zero; or                                                                             
24 (ii)  the amount calculated for the month under                                                                     
25 AS 43.55.011(g), as applicable, and 25 percent multiplied by the                                                    
26 remainder obtained by subtracting 1/12 of the producer's adjusted                                                   
27 lease expenditures for the calendar year of production under                                                        
28 AS 43.55.165 and 43.55.170 that are deductible for the oil and gas                                                  
29 under AS 43.55.160 from the gross value at the point of production                                                  
30 of the oil and gas produced from the leases or properties during the                                                
31                 month for which the installment payment is calculated;                                              
01                      (B)  for oil and gas produced from leases or properties                                        
02            subject to AS 43.55.011(f), the greatest of                                                              
03                           (i)  zero;                                                                                
04 (ii)  the percentage applicable under AS 43.55.011(f)                                                               
05 of the gross value at the point of production of the oil and gas                                                    
06 produced from the leases or properties during the month for which                                                   
07                 the installment payment is calculated; or                                                           
08                           (iii)  the amount calculated for the month under                                          
09                 AS 43.55.011(g), as applicable, and 25 percent multiplied by the                                    
10 remainder obtained by subtracting 1/12 of the producer's adjusted                                                   
11 lease expenditures for the calendar year of production under                                                        
12 AS 43.55.165 and 43.55.170 that are deductible for the oil and gas                                                  
13 under AS 43.55.160 from the gross value at the point of production                                                  
14 of the oil and gas produced from those leases or properties during                                                  
15 the month for which the installment payment is calculated, except                                                   
16 that, for the purposes of this calculation, a reduction from the gross                                              
17 value at the point of production may apply for oil and gas subject                                                  
18                 to AS 43.55.160(f);                                                                                 
19 (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                                    
20            each lease or property, the greater of                                                                   
21                           (i)  zero; or                                                                             
22 (ii)  the amount calculated for the month under                                                                     
23 AS 43.55.011(g), as applicable, and 25 percent multiplied by the                                                    
24 remainder obtained by subtracting 1/12 of the producer's adjusted                                                   
25 lease expenditures for the calendar year of production under                                                        
26 AS 43.55.165 and 43.55.170 that are deductible under AS 43.55.160                                                   
27 for the oil or gas, respectively, produced from the lease or property                                               
28 from the gross value at the point of production of the oil or gas,                                                  
29 respectively, produced from the lease or property during the                                                        
30                 month for which the installment payment is calculated;                                              
31                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                 
01 (i)  the amount calculated for the month under                                                                      
02 AS 43.55.011(g), as applicable, and 25 percent multiplied by the                                                    
03 remainder obtained by subtracting 1/12 of the producer's adjusted                                                   
04 lease expenditures for the calendar year of production under                                                        
05 AS 43.55.165 and 43.55.170 that are deductible for the oil and gas                                                  
06 under AS 43.55.160 from the gross value at the point of production                                                  
07 of the oil and gas produced from the leases or properties during the                                                
08 month for which the installment payment is calculated, but not less                                                 
09                 than zero; or                                                                                       
10 (ii)  four percent of the gross value at the point of                                                               
11 production of the oil and gas produced from the leases or                                                           
12                 properties during the month, but not less than zero;                                                
13 (7) [(6)]  an amount calculated under (5)(C) or (6)(C) of this subsection                                       
14 for oil or gas subject to AS 43.55.011(j), (k), or (o) may not exceed the product                                       
15 obtained by carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or                                        
16 43.55.011(o), as applicable, for gas or set out in AS 43.55.011(k) for oil, but                                         
17 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the                                     
18 amount of taxable gas produced during the month for the amount of taxable gas                                           
19 produced during the calendar year and substituting in AS 43.55.011(k) the amount of                                     
20 taxable oil produced during the month for the amount of taxable oil produced during                                     
21       the calendar year;                                                                                                
22 (8) [(7)]  for oil and gas produced on or after January 1, 2022, an                                                 
23 installment payment of the estimated tax levied by AS 43.55.011(e), net of any tax                                      
24 credits applied as allowed by law, is due for each month of the calendar year on the                                    
25 last day of the following month; except as otherwise provided under (11) [(10)] of this                             
26 subsection, the amount of the installment payment is the sum of the following                                           
27 amounts, less 1/12 of the tax credits that are allowed by law to be applied against the                                 
28 tax levied by AS 43.55.011(e) for the calendar year, but the amount of the installment                                  
29       payment may not be less than zero:                                                                                
30 (A)  for oil produced from leases or properties subject to                                                              
31            AS 43.55.011(f), the greatest of                                                                             
01                           (i)  zero;                                                                                    
02 (ii)  the percentage applicable under AS 43.55.011(f)                                                               
03 [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE                                                                          
04 PERCENT, OR FOUR PERCENT, AS APPLICABLE,] of the gross                                                                  
05 value at the point of production of the oil produced from the leases or                                                 
06 properties during the month for which the installment payment is                                                        
07                 calculated; or                                                                                          
08 (iii)  the amount calculated for the month under                                                                    
09 AS 43.55.011(g), as applicable, and 25 [35] percent multiplied by the                                               
10 remainder obtained by subtracting 1/12 of the producer's adjusted lease                                                 
11 expenditures for the calendar year of production under AS 43.55.165                                                     
12 and 43.55.170 that are deductible for the oil under                                                                     
13 AS 43.55.160(h)(1)(A) [AS 43.55.160(h)(1)] from the gross value at                                                  
14 the point of production of the oil produced from those leases or                                                        
15 properties during the month for which the installment payment is                                                        
16 calculated, except that, for the purposes of this calculation, a reduction                                              
17 from the gross value at the point of production may apply for oil                                                       
18                 subject to AS 43.55.160(f) [OR 43.55.160(f) AND (g)];                                                   
19 (B)  for oil produced before or during the last calendar year                                                           
20 under AS 43.55.024(b) for which the producer could take a tax credit under                                              
21 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet                                          
22 sedimentary basin, no part of which is north of 68 degrees North latitude, other                                        
23            than leases or properties subject to AS 43.55.011(o) or (p), the greater of                                  
24                           (i)  zero; or                                                                                 
25 (ii)  the amount calculated for the month under                                                                     
26 AS 43.55.011(g), as applicable, and 25 [35] percent multiplied by the                                               
27 remainder obtained by subtracting 1/12 of the producer's adjusted lease                                                 
28 expenditures for the calendar year of production under AS 43.55.165                                                     
29 and 43.55.170 that are deductible for the oil under                                                                     
30 AS 43.55.160(h)(1)(B) [AS 43.55.160(h)(2)] from the gross value at                                                  
31 the point of production of the oil produced from the leases or properties                                               
01                 during the month for which the installment payment is calculated;                                       
02 (C)  for oil and gas produced from leases or properties subject                                                         
03 to AS 43.55.011(p), except as otherwise provided under (9) [(8)] of this                                            
04            subsection, the sum of                                                                                       
05 (i)  the amount calculated for the month under                                                                      
06 AS 43.55.011(g), as applicable, and 25 [35] percent multiplied by the                                               
07 remainder obtained by subtracting 1/12 of the producer's adjusted lease                                                 
08 expenditures for the calendar year of production under AS 43.55.165                                                     
09 and 43.55.170 that are deductible for the oil under                                                                     
10 AS 43.55.160(h)(1)(C) [AS 43.55.160(h)(3)] from the gross value at                                                  
11 the point of production of the oil produced from the leases or properties                                               
12 during the month for which the installment payment is calculated, but                                                   
13                 not less than zero; and                                                                                 
14 (ii)  13 percent of the gross value at the point of                                                                     
15 production of the gas produced from the leases or properties during the                                                 
16                 month, but not less than zero;                                                                          
17 (D)  for oil produced from leases or properties in the state, no                                                        
18 part of which is north of 68 degrees North latitude, other than leases or                                               
19            properties subject to (B), (C), or (F) of this paragraph, the greater of                                     
20                           (i)  zero; or                                                                                 
21 (ii)  the amount calculated for the month under                                                                     
22 AS 43.55.011(g), as applicable, and 25 [35] percent multiplied by the                                               
23 remainder obtained by subtracting 1/12 of the producer's adjusted lease                                                 
24 expenditures for the calendar year of production under AS 43.55.165                                                     
25 and 43.55.170 that are deductible for the oil under                                                                     
26 AS 43.55.160(h)(1)(D) [AS 43.55.160(h)(4)] from the gross value at                                                  
27 the point of production of the oil produced from the leases or properties                                               
28                 during the month for which the installment payment is calculated;                                       
29 (E)  for gas produced from each lease or property in the state                                                          
30 outside the Cook Inlet sedimentary basin, other than a lease or property subject                                        
31 to AS 43.55.011(o) or (p), 13 percent of the gross value at the point of                                                
01            production of the gas produced from the lease or property during the month for                               
02            which the installment payment is calculated, but not less than zero;                                         
03                      (F)  for oil subject to AS 43.55.011(k), for each lease or                                         
04            property, the greater of                                                                                     
05                           (i)  zero; or                                                                                 
06 (ii)  the amount calculated for the month under                                                                     
07 AS 43.55.011(g), as applicable, and 25 [35] percent multiplied by the                                               
08 remainder obtained by subtracting 1/12 of the producer's adjusted lease                                                 
09 expenditures for the calendar year of production under AS 43.55.165                                                     
10 and 43.55.170 that are deductible under AS 43.55.160 for the oil                                                        
11 produced from the lease or property from the gross value at the point of                                                
12 production of the oil produced from the lease or property during the                                                    
13                 month for which the installment payment is calculated;                                                  
14 (G)  for gas subject to AS 43.55.011(j) or (o), for each lease or                                                       
15            property, the greater of                                                                                     
16                           (i)  zero; or                                                                                 
17 (ii)  13 percent of the gross value at the point of                                                                     
18 production of the gas produced from the lease or property during the                                                    
19                 month for which the installment payment is calculated;                                                  
20 (9) [(8)]  an amount calculated under (8)(C) [(7)(C)] of this subsection                                        
21 may not exceed four percent of the gross value at the point of production of the oil and                                
22 gas produced from leases or properties subject to AS 43.55.011(p) during the month                                      
23       for which the installment payment is calculated;                                                                  
24 (10) [(9)]  for purposes of the calculation under (1)(B)(ii), (5)(B)(ii),                                           
25 (6)(B)(ii), and (8)(A)(ii) [(7)(A)(ii)] of this subsection, the applicable percentage of                        
26 the gross value at the point of production is determined under AS 43.55.011(f)(1) or                                    
27 (2) but substituting the phrase "month for which the installment payment is calculated"                                 
28       in AS 43.55.011(f)(1) and (2) for the phrase "calendar year for which the tax is due";                            
29 (11) [(10)]  an amount calculated under (8)(F) or (G) [(7)(F) OR (G)]                                           
30 of this subsection for oil or gas subject to AS 43.55.011(j), (k), or (o) may not exceed                                
31 the product obtained by carrying out the calculation set out in AS 43.55.011(j)(1) or                                   
01 (2) or 43.55.011(o), as applicable, for gas, or set out in AS 43.55.011(k) for oil, but                                 
02 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the                                     
03 amount of taxable gas produced during the month for the amount of taxable gas                                           
04 produced during the calendar year and substituting in AS 43.55.011(k) the amount of                                     
05 taxable oil produced during the month for the amount of taxable oil produced during                                     
06       the calendar year.                                                                                                
07    * Sec. 11. AS 43.55.020(g) is amended to read:                                                                     
08            (g)  Notwithstanding any contrary provision of AS 43.05.225,                                                 
09                 (1)  before January 1, 2014, an unpaid amount of an installment                                         
10 payment required under (a)(1) - (3) of this section that is not paid when due bears                                     
11 interest (A) at the rate provided for an underpayment under 26 U.S.C. 6621 (Internal                                    
12 Revenue Code), as amended, compounded daily, from the date the installment                                              
13 payment is due until March 31 following the calendar year of production, and (B) as                                     
14 provided for a delinquent tax under AS 43.05.225 after that March 31; interest accrued                                  
15 under (A) of this paragraph that remains unpaid after that March 31 is treated as an                                    
16 addition to tax that bears interest under (B) of this paragraph; an unpaid amount of tax                                
17 due under (a)(4) of this section that is not paid when due bears interest as provided for                               
18       a delinquent tax under AS 43.05.225;                                                                              
19 (2)  on and after January 1, 2014, an unpaid amount of an installment                                                   
20 payment required under (a)(3), (5), (6), [OR] (7), or (8) of this section that is not paid                          
21 when due bears interest (A) at the rate provided for an underpayment under 26 U.S.C.                                    
22 6621 (Internal Revenue Code), as amended, compounded daily, from the date the                                           
23 installment payment is due until March 31 following the calendar year of production,                                    
24 and (B) as provided for a delinquent tax under AS 43.05.225 after that March 31;                                        
25 interest accrued under (A) of this paragraph that remains unpaid after that March 31 is                                 
26 treated as an addition to tax that bears interest under (B) of this paragraph; an unpaid                                
27 amount of tax due under (a)(4) of this section that is not paid when due bears interest                                 
28       as provided for a delinquent tax under AS 43.05.225.                                                              
29    * Sec. 12. AS 43.55.020(h) is amended to read:                                                                     
30            (h)  Notwithstanding any contrary provision of AS 43.05.280,                                                 
31 (1)  an overpayment of an installment payment required under (a)(1),                                                    
01 (2), (3), (5), (6), [OR] (7), or (8) of this section bears interest at the rate provided for                        
02 an overpayment under 26 U.S.C. 6621 (Internal Revenue Code), as amended,                                                
03 compounded daily, from the later of the date the installment payment is due or the date                                 
04       the overpayment is made, until the earlier of                                                                     
05                      (A)  the date it is refunded or is applied to an underpayment; or                                  
06                      (B)  March 31 following the calendar year of production;                                           
07 (2)  except as provided under (1) of this subsection, interest with                                                     
08 respect to an overpayment is allowed only on any net overpayment of the payments                                        
09 required under (a) of this section that remains after the later of March 31 following the                               
10 calendar year of production or the date that the statement required under                                               
11       AS 43.55.030(a) is filed;                                                                                         
12 (3)  interest is allowed under (2) of this subsection only from a date that                                             
13 is 90 days after the later of March 31 following the calendar year of production or the                                 
14 date that the statement required under AS 43.55.030(a) is filed; interest is not allowed                                
15       if the overpayment was refunded within the 90-day period;                                                         
16 (4)  interest under (2) and (3) of this subsection is paid at the rate and in                                           
17       the manner provided in AS 43.05.225(1).                                                                           
18    * Sec. 13. AS 43.55.020(k) is amended to read:                                                                     
19 (k)  For oil and gas produced on and after January 1, 2014, and before                                                  
20 January 1, 2022, in making settlement with the royalty owner for oil and gas that is                                    
21 taxable under AS 43.55.011, the producer may deduct the amount of the tax paid on                                       
22 taxable royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in                                     
23 value at the time the tax becomes due to the amount of the tax paid. If the total                                       
24 deductions of installment payments of estimated tax for a calendar year exceed the                                      
25 actual tax for that calendar year, the producer shall, before April 1 of the following                                  
26 year, refund the excess to the royalty owner. Unless otherwise agreed between the                                       
27 producer and the royalty owner, the amount of the tax paid under AS 43.55.011(e) on                                     
28 taxable royalty oil and gas for a calendar year, other than oil and gas the ownership or                                
29 right to which constitutes a landowner's royalty interest, is considered to be the gross                                
30 value at the point of production of the taxable royalty oil and gas produced during the                                 
31       calendar year multiplied by a figure that is a quotient, in which                                                 
01                 (1)  the numerator is the producer's total tax liability under                                          
02       AS 43.55.011(e) [AS 43.55.011(e)(2)] for the calendar year of production; and                                 
03                 (2)  the denominator is the total gross value at the point of production                                
04       of the oil and gas taxable under AS 43.55.011(e) produced by the producer from all                                
05       leases and properties in the state during the calendar year.                                                      
06    * Sec. 14. AS 43.55.020(l) is amended to read:                                                                     
07 (l)  For oil and gas produced on and after January 1, 2022, in making                                                   
08 settlement with the royalty owner for oil and gas that is taxable under AS 43.55.011,                                   
09 the producer may deduct the amount of the tax paid on taxable royalty oil and gas, or                                   
10 may deduct taxable royalty oil or gas equivalent in value at the time the tax becomes                                   
11 due to the amount of the tax paid. If the total deductions of installment payments of                                   
12 estimated tax for a calendar year exceed the actual tax for that calendar year, the                                     
13 producer shall, before April 1 of the following year, refund the excess to the royalty                                  
14 owner. In making settlement with the royalty owner for gas that is taxable under                                        
15 AS 43.55.014, the producer may deduct the amount of the gas paid as in-kind tax on                                      
16 taxable royalty gas or may deduct the gross value at the point of production of the gas                                 
17 paid as in-kind tax on taxable royalty gas. Unless otherwise agreed between the                                         
18 producer and the royalty owner, the amount of the tax paid under AS 43.55.011(e) on                                     
19 taxable royalty oil for a calendar year, other than oil the ownership or right to which                                 
20 constitutes a landowner's royalty interest, is considered to be the gross value at the                                  
21 point of production of the taxable royalty oil produced during the calendar year                                        
22       multiplied by a figure that is a quotient, in which                                                               
23 (1)  the numerator is the producer's total tax liability under                                                          
24 AS 43.55.011(e)(4)(A) [AS 43.55.011(e)(3)(A)] for the calendar year of production;                                  
25       and                                                                                                               
26 (2)  the denominator is the total gross value at the point of production                                                
27 of the oil taxable under AS 43.55.011(e) produced by the producer from all leases and                                   
28       properties in the state during the calendar year.                                                                 
29    * Sec. 15. AS 43.55.023(b) is amended to read:                                                                     
30 (b)  [BEFORE JANUARY 1, 2014, A PRODUCER OR EXPLORER MAY                                                                
31 ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 25 PERCENT OF A                                                             
01 CARRIED-FORWARD ANNUAL LOSS. FOR LEASE EXPENDITURES                                                                     
02 INCURRED ON AND AFTER JANUARY 1, 2014, AND BEFORE JANUARY 1,                                                            
03 2016, TO EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS                                                           
04 LOCATED NORTH OF 68 DEGREES NORTH LATITUDE, A PRODUCER OR                                                               
05 EXPLORER MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 45                                                             
06 PERCENT OF A CARRIED-FORWARD ANNUAL LOSS. FOR LEASE                                                                     
07 EXPENDITURES INCURRED ON AND AFTER JANUARY 1, 2016, TO                                                                  
08 EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS LOCATED                                                            
09 NORTH OF 68 DEGREES NORTH LATITUDE, A PRODUCER OR EXPLORER                                                              
10 MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 35 PERCENT OF                                                           
11 A CARRIED-FORWARD ANNUAL LOSS. FOR LEASE EXPENDITURES                                                                   
12 INCURRED ON OR AFTER JANUARY 1, 2014, AND BEFORE JANUARY 1,                                                             
13 2017, TO EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS                                                           
14 LOCATED SOUTH OF 68 DEGREES NORTH LATITUDE, A PRODUCER OR                                                               
15 EXPLORER MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 25                                                             
16 PERCENT OF A CARRIED-FORWARD ANNUAL LOSS.] For lease expenditures                                                       
17 incurred [ON OR AFTER JANUARY 1, 2017,] to explore for, develop, or produce oil                                         
18 or gas deposits located south of 68 degrees North latitude, a producer or explorer may                                  
19 elect to take a tax credit in the amount of 15 percent of a carried-forward annual loss,                                
20 except that a credit for lease expenditures incurred to explore for, develop, or produce                                
21 oil or gas deposits located in the Cook Inlet sedimentary basin may only be taken if                                    
22 the expenditure is incurred before January 1, 2018. A credit under this subsection may                                  
23       be applied against a tax levied by AS 43.55.011(e). For purposes of this subsection,                              
24 (1)  a carried-forward annual loss is the amount of a producer's or                                                     
25 explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a                                           
26 previous calendar year that was not deductible in calculating production tax values for                                 
27       that calendar year under AS 43.55.160;                                                                            
28 (2)  for lease expenditures incurred on or after January 1, 2017, any                                                   
29 reduction under AS 43.55.160(f) [OR (g)] is added back to the calculation of                                            
30 production tax values for that calendar year under AS 43.55.160 for the determination                                   
31       of a carried-forward annual loss.                                                                               
01    * Sec. 16. AS 43.55.023(c) is amended to read:                                                                     
02 (c)  A credit or portion of a credit under this section may not be used to reduce                                       
03 a person's tax liability under AS 43.55.011(e) for any calendar year below zero or the                              
04 amount calculated under AS 43.55.011(f), if applicable, and any unused credit or                                    
05 portion of a credit not used under this subsection may be applied in a later calendar                                   
06       year.                                                                                                             
07    * Sec. 17. AS 43.55.024(i) is amended to read:                                                                     
08            (i)  A producer may apply against the producer's tax liability for the calendar                              
09       year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under                                
10 AS 43.55.011(e) that receives a reduction in the gross value at the point of production                                 
11 under AS 43.55.160(f) [OR (g)] and that is produced during a calendar year after                                        
12 December 31, 2013. A tax credit authorized by this subsection may not reduce a                                          
13 producer's tax liability for a calendar year under AS 43.55.011(e) below zero or the                                
14       amount calculated under AS 43.55.011(f) or (q), as applicable.                                                
15    * Sec. 18. AS 43.55.025(i) is amended to read:                                                                     
16            (i)  For a production tax credit under this section,                                                         
17 (1)  a credit may not be applied to reduce a taxpayer's tax liability for a                                         
18 calendar year under AS 43.55.011(e) below zero or the amount calculated under                                   
19       AS 43.55.011(f), if applicable [FOR A CALENDAR YEAR]; and                                                     
20 (2)  an amount of the production tax credit in excess of the amount that                                                
21 may be applied for a calendar year under this subsection may be carried forward and                                     
22 applied against the taxpayer's tax liability under AS 43.55.011(e) in one or more later                                 
23       calendar years.                                                                                                   
24    * Sec. 19. AS 43.55.030(a) is amended to read:                                                                     
25 (a)  A producer that produces oil or gas from a lease or property in the state                                          
26 during a calendar year, whether or not any tax payment is due under AS 43.55.020(a)                                     
27 for that oil or gas, shall file with the department on March 31 of the following year a                                 
28 statement, under oath, in a form prescribed by the department, giving, with other                                       
29       information required under a regulation adopted by the department, the following:                             
30 (1)  a description of each lease or property from which oil or gas was                                                  
31 produced, by name, legal description, lease number, or accounting codes assigned by                                     
01       the department;                                                                                                   
02                 (2)  the names of the producer and, if different, the person paying the                                 
03       tax, if any;                                                                                                      
04 (3)  the gross amount of oil and the gross amount of gas produced from                                                  
05 each lease or property, separately identifying the gross amount of gas produced from                                    
06 each oil and gas lease to which an effective election under AS 43.55.014(a) applies,                                    
07 the amount of gas delivered to the state under AS 43.55.014(b), and the percentage of                                   
08       the gross amount of oil and gas owned by the producer;                                                            
09                 (4)  the gross value at the point of production of the oil and of the gas                               
10 produced from each lease or property owned by the producer and the costs of                                             
11       transportation of the oil and gas;                                                                                
12 (5)  the name of the first purchaser and the price received for the oil and                                             
13 for the gas, unless relieved from this requirement in whole or in part by the                                           
14       department;                                                                                                       
15 (6)  the producer's qualified capital expenditures, as defined in                                                       
16 AS 43.55.023, other lease expenditures under AS 43.55.165, and adjustments or other                                     
17       payments or credits under AS 43.55.170;                                                                           
18 (7)  the production tax values of the oil and gas under AS 43.55.160(a)                                                 
19       or of the oil under AS 43.55.160(h), as applicable;                                                               
20                 (8)  any claims for tax credits to be applied; [AND]                                                    
21 (9)  calculations showing the amounts, if any, that were or are due                                                     
22       under AS 43.55.020(a) and interest on any underpayment or overpayment; and                                    
23 (10)  for each expenditure that is the basis of a lease expenditure                                                 
24 carried forward under AS 43.55.165(a)(3) or a credit claimed under AS 43.55.023                                     
25 or 43.55.025, a description of the expenditure and a description of the lease or                                    
26       property for which the expenditure was incurred.                                                              
27    * Sec. 20. AS 43.55.030(e) is amended to read:                                                                     
28 (e)  An explorer or producer that incurs a lease expenditure under                                                      
29 AS 43.55.165 or receives a payment or credit under AS 43.55.170 during a calendar                                       
30 year but does not produce oil or gas from a lease or property in the state during the                                   
31 calendar year shall file with the department, on March 31 of the following year, a                                      
01       statement, under oath, in a form prescribed by the department, giving, with other                                 
02 information required under a regulation adopted by the department, the following:                                   
03 (1)  the explorer's or producer's qualified capital expenditures, as                                                    
04 defined in AS 43.55.023, other lease expenditures under AS 43.55.165, and                                               
05       adjustments or other payments or credits under AS 43.55.170; [AND]                                                
06                 (2)  if the explorer or producer receives a payment or credit under                                     
07       AS 43.55.170, calculations showing whether the explorer or producer is liable for a                               
08       tax under AS 43.55.160(d) or 43.55.170(b) and, if so, the amount; and                                         
09                 (3)  for each expenditure that is the basis of a lease expenditure                                  
10 carried forward under AS 43.55.165(a)(3) or a credit claimed under this chapter,                                    
11 a description of the expenditure and a description of the lease or property for                                     
12       which the expenditure was incurred.                                                                           
13    * Sec. 21. AS 43.55.150 is amended by adding a new subsection to read:                                             
14 (d)  For purposes of calculating the tax under this chapter, the gross value at                                         
15       the point of production may not be less than zero.                                                                
16    * Sec. 22. AS 43.55.160(a) is amended to read:                                                                     
17 (a)  For oil and gas produced before January 1, 2022, except as provided in (b)                                         
18       and [,] (f) [, AND (g)] of this section, for the purposes of                                                  
19 (1)  AS 43.55.011(e)(1) - (3) [AS 43.55.011(e)(1) AND (2)], the annual                                              
20 production tax value of taxable oil, gas, or oil and gas produced during a calendar year                                
21 in a category for which a separate annual production tax value is required to be                                        
22 calculated under this paragraph is the gross value at the point of production of that oil,                              
23 gas, or oil and gas taxable under AS 43.55.011(e), less the producer's lease                                            
24 expenditures under AS 43.55.165 for the calendar year applicable to the oil, gas, or oil                                
25 and gas in that category produced by the producer during the calendar year, as                                          
26 adjusted under AS 43.55.170; a separate annual production tax value shall be                                            
27       calculated for                                                                                                    
28 (A)  oil and gas produced from leases or properties in the state                                                        
29 that include land north of 68 degrees North latitude, other than gas produced                                           
30            before 2022 and used in the state;                                                                           
31 (B)  oil and gas produced from leases or properties in the state                                                        
01            outside the Cook Inlet sedimentary basin, no part of which is north of 68                                    
02            degrees North latitude and that qualifies for a tax credit under AS 43.55.024(a)                             
03            and (b); this subparagraph does not apply to                                                                 
04                           (i)  gas produced before 2022 and used in the state; or                                       
05                           (ii)  oil and gas subject to AS 43.55.011(p);                                                 
06                      (C)  oil produced before 2022 from each lease or property in the                                   
07            Cook Inlet sedimentary basin;                                                                                
08                      (D)  gas produced before 2022 from each lease or property in                                       
09            the Cook Inlet sedimentary basin;                                                                            
10 (E)  gas produced before 2022 from each lease or property in                                                            
11 the state outside the Cook Inlet sedimentary basin and used in the state, other                                         
12            than gas subject to AS 43.55.011(p);                                                                         
13 (F)  oil and gas subject to AS 43.55.011(p) produced from                                                               
14            leases or properties in the state;                                                                           
15 (G)  oil and gas produced from leases or properties in the state                                                        
16 no part of which is north of 68 degrees North latitude, other than oil or gas                                           
17            described in (B), (C), (D), (E), or (F) of this paragraph;                                                   
18 (2)  AS 43.55.011(g), for oil and gas produced before January 1, 2014,                                                  
19       or on or after January 1, 2018, the monthly production tax value of the taxable                               
20 (A)  oil and gas produced during a month from leases or                                                                 
21 properties in the state that include land north of 68 degrees North latitude is the                                     
22 gross value at the point of production of the oil and gas taxable under                                                 
23 AS 43.55.011(e) and produced by the producer from those leases or properties,                                           
24 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the                                               
25 calendar year applicable to the oil and gas produced by the producer from                                               
26 those leases or properties, as adjusted under AS 43.55.170; this subparagraph                                           
27            does not apply to gas subject to AS 43.55.011(o);                                                            
28 (B)  oil and gas produced during a month from leases or                                                                 
29 properties in the state outside the Cook Inlet sedimentary basin, no part of                                            
30 which is north of 68 degrees North latitude, is the gross value at the point of                                         
31 production of the oil and gas taxable under AS 43.55.011(e) and produced by                                             
01 the producer from those leases or properties, less 1/12 of the producer's lease                                         
02 expenditures under AS 43.55.165 for the calendar year applicable to the oil and                                         
03 gas produced by the producer from those leases or properties, as adjusted under                                         
04 AS 43.55.170; this subparagraph does not apply to gas subject to                                                        
05            AS 43.55.011(o);                                                                                             
06 (C)  oil produced during a month from a lease or property in the                                                        
07 Cook Inlet sedimentary basin is the gross value at the point of production of                                           
08 the oil taxable under AS 43.55.011(e) and produced by the producer from that                                            
09 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 oil produced by the                                                
11            producer from that lease or property, as adjusted under AS 43.55.170;                                        
12 (D)  gas produced during a month from a lease or property in                                                            
13 the Cook Inlet sedimentary basin is the gross value at the point of production                                          
14 of the gas taxable under AS 43.55.011(e) and produced by the producer from                                              
15 that lease or property, less 1/12 of the producer's lease expenditures under                                            
16 AS 43.55.165 for the calendar year applicable to the gas produced by the                                                
17            producer from that lease or property, as adjusted under AS 43.55.170;                                        
18 (E)  gas produced during a month from a lease or property                                                               
19 outside the Cook Inlet sedimentary basin and used in the state is the gross                                             
20 value at the point of production of that gas taxable under AS 43.55.011(e) and                                          
21 produced by the producer from that lease or property, less 1/12 of the                                                  
22 producer's lease expenditures under AS 43.55.165 for the calendar year                                                  
23 applicable to that gas produced by the producer from that lease or property, as                                         
24            adjusted under AS 43.55.170.                                                                               
25    * Sec. 23. AS 43.55.160(e) is amended to read:                                                                     
26 (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that                                              
27 would otherwise be deductible by a producer in a calendar year but whose deduction                                      
28 would cause an annual production tax value calculated under (a)(1) or (h)(1) [(h)] of                               
29 this section of taxable oil or gas produced during the calendar year to be less than zero                               
30 may be used to establish a carried-forward annual loss under AS 43.55.023(b) or                                     
31 43.55.165(a)(3). However, the department shall provide by regulation a method to                                    
01 ensure that, for a period for which a producer's tax liability is limited by                                            
02 AS 43.55.011(j), (k), (o), or (p), any adjusted lease expenditures under AS 43.55.165                                   
03 and 43.55.170 that would otherwise be deductible by a producer for that period but                                      
04 whose deduction would cause a production tax value calculated under (a)(1)(C), (D),                                     
05 (E), or (F), or (h)(1)(C) [(h)(3)] of this section to be less than zero are accounted for as                        
06 though the adjusted lease expenditures had first been used as deductions in calculating                                 
07 the production tax values of oil or gas subject to any of the limitations under                                         
08 AS 43.55.011(j), (k), (o), or (p) that have positive production tax values so as to                                     
09 reduce the tax liability calculated without regard to the limitation to the maximum                                     
10 amount provided for under the applicable provision of AS 43.55.011(j), (k), (o), or (p).                                
11 Only the amount of those adjusted lease expenditures remaining after the accounting                                     
12 provided for under this subsection may be used to establish a carried-forward annual                                    
13 loss under AS 43.55.023(b) or 43.55.165(a)(3). In this subsection, "producer" includes                              
14       "explorer."                                                                                                       
15    * Sec. 24. AS 43.55.160(f) is amended to read:                                                                     
16 (f)  On and after January 1, 2014, in the calculation of an annual production tax                                       
17 value of a producer under (a)(1)(A) or (h)(1)(A) [(h)(1)] of this section, the gross                                
18 value at the point of production of oil or gas produced from a lease or property north                                  
19 of 68 degrees North latitude meeting one or more of the following criteria is reduced                                   
20 by 20 percent: (1) the oil or gas is produced from a lease or property that does not                                    
21 contain a lease that was within a unit on January 1, 2003; (2) the oil or gas is produced                               
22 from a participating area established after December 31, 2011, that is within a unit                                    
23 formed under AS 38.05.180(p) before January 1, 2003, if the participating area does                                     
24 not contain a reservoir that had previously been in a participating area established                                    
25 before December 31, 2011; (3) the oil or gas is produced from acreage that was added                                    
26 to an existing participating area by the Department of Natural Resources on and after                                   
27 January 1, 2014, and the producer demonstrates to the department that the volume of                                     
28 oil or gas produced is from acreage added to an existing participating area. This                                       
29 subsection does not apply to gas produced before 2022 that is used in the state or to                                   
30 gas produced on and after January 1, 2022. For oil and gas first produced from a lease                                  
31 or property after December 31, 2016, a reduction allowed under this subsection                                          
01 applies from the date of commencement of regular production of oil and gas from that                                    
02 lease or property and expires after three years, consecutive or nonconsecutive, in                                      
03 which the average annual price per barrel for Alaska North Slope crude oil for sale on                                  
04 the United States West Coast is more than $70 or after seven years, whichever occurs                                    
05 first. For oil and gas first produced from a lease or property before January 1, 2017, a                                
06 reduction allowed under this subsection expires on the earlier of January 1, 2023, or                                   
07 January 1 following three years, consecutive or nonconsecutive, in which the average                                    
08 annual price per barrel for Alaska North Slope crude oil for sale on the United States                                  
09 West Coast is more than $70. The Alaska Oil and Gas Conservation Commission shall                                       
10 determine the commencement of regular production of oil and gas for purposes of this                                    
11 subsection. A reduction under this subsection may not reduce the gross value at the                                     
12 point of production below zero. In this subsection, "participating area" means a                                        
13 reservoir or portion of a reservoir producing or contributing to production as approved                                 
14       by the Department of Natural Resources.                                                                           
15    * Sec. 25. AS 43.55.160(h) is amended to read:                                                                     
16 (h)  For oil produced on and after January 1, 2022, except as provided in (b)                                           
17       and  [,] (f) [, AND (g)] of this section, for the purposes of                                                 
18 (1)  AS 43.55.011(e)(4) [AS 43.55.011(e)(3)], the annual production                                                 
19 tax value of oil taxable under AS 43.55.011(e) produced by a producer during a                                          
20       calendar year                                                                                                     
21 (A) [(1)]  from leases or properties in the state that include land                                                 
22 north of 68 degrees North latitude is the gross value at the point of production                                        
23 of that oil, less the producer's lease expenditures under AS 43.55.165 for the                                          
24 calendar year incurred to explore for, develop, or produce oil and gas deposits                                         
25 located in the state north of 68 degrees North latitude or located in leases or                                         
26 properties in the state that include land north of 68 degrees North latitude, as                                        
27            adjusted under AS 43.55.170;                                                                                 
28 (B) [(2)]  before or during the last calendar year under                                                            
29 AS 43.55.024(b) for which the producer could take a tax credit under                                                    
30 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet                                          
31 sedimentary basin, no part of which is north of 68 degrees North latitude, other                                        
01 than leases or properties subject to AS 43.55.011(p), is the gross value at the                                         
02 point of production of that oil, less the producer's lease expenditures under                                           
03 AS 43.55.165 for the calendar year incurred to explore for, develop, or produce                                         
04 oil and gas deposits located in the state outside the Cook Inlet sedimentary                                            
05 basin and south of 68 degrees North latitude, other than oil and gas deposits                                           
06 located in a lease or property that includes land north of 68 degrees North                                             
07 latitude or that is subject to AS 43.55.011(p) or, before January 1, 2027, from                                         
08            which commercial production has not begun, as adjusted under AS 43.55.170;                                   
09 (C) [(3)]  from leases or properties subject to AS 43.55.011(p)                                                     
10 is the gross value at the point of production of that oil, less the producer's lease                                    
11 expenditures under AS 43.55.165 for the calendar year incurred to explore for,                                          
12 develop, or produce oil and gas deposits located in leases or properties subject                                        
13 to AS 43.55.011(p) or, before January 1, 2027, located in leases or properties                                          
14 in the state outside the Cook Inlet sedimentary basin, no part of which is north                                        
15 of 68 degrees North latitude from which commercial production has not begun,                                            
16            as adjusted under AS 43.55.170;                                                                              
17 (D) [(4)]  from leases or properties in the state no part of which                                                  
18 is north of 68 degrees North latitude, other than leases or properties subject to                                       
19 (B) or (C) of this paragraph [(2) OR (3) OF THIS SUBSECTION], is the                                                
20 gross value at the point of production of that oil less the producer's lease                                            
21 expenditures under AS 43.55.165 for the calendar year incurred to explore for,                                          
22 develop, or produce oil and gas deposits located in the state south of 68                                               
23 degrees North latitude, other than oil and gas deposits located in a lease or                                           
24 property in the state that includes land north of 68 degrees North latitude, and                                        
25 excluding lease expenditures that are deductible under (B) or (C) of this                                           
26 paragraph [(2) OR (3) OF THIS SUBSECTION] or would be deductible                                                    
27 under (B) or (C) of this paragraph [(2) OR (3) OF THIS SUBSECTION] if                                               
28 not prohibited by (b) of this section, as adjusted under AS 43.55.170; a                                                
29            separate annual production tax value shall be calculated for                                                 
30 (i) [(A)]  oil produced from each lease or property in the                                                          
31                 Cook Inlet sedimentary basin;                                                                           
01 (ii) [(B)]  oil produced from each lease or property                                                                
02 outside the Cook Inlet sedimentary basin, no part of which is north of                                                  
03 68 degrees North latitude, other than leases or properties subject to (C)                                           
04                 of this paragraph;                                                                                  
05 (2)  AS 43.55.011(g)(3), the monthly production tax value of oil                                                    
06       taxable under AS 43.55.011(e) produced by a producer during a month                                           
07 (A)  from leases or properties in the state that include land                                                       
08 north of 68 degrees North latitude is the gross value at the point of                                               
09 production of that oil, less 1/12 the producer's lease expenditures under                                           
10 AS 43.55.165 for the calendar year incurred to explore for, develop, or                                             
11 produce oil and gas deposits located in the state north of 68 degrees North                                         
12 latitude or located in leases or properties in the state that include land                                          
13            north of 68 degrees North latitude, as adjusted under AS 43.55.170;                                      
14 (B)  in a calendar year that is before or during the last                                                           
15 calendar year under AS 43.55.024(b) for which the producer could take a                                             
16 tax credit under AS 43.55.024(a), from leases or properties in the state                                            
17 outside the Cook Inlet sedimentary basin, no part of which is north of 68                                           
18 degrees North latitude, other than leases or properties subject to                                                  
19 AS 43.55.011(p), is the gross value at the point of production of that oil,                                         
20 less 1/12 the producer's lease expenditures under AS 43.55.165 for the                                              
21 calendar year incurred to explore for, develop, or produce oil and gas                                              
22 deposits located in the state outside the Cook Inlet sedimentary basin and                                          
23 south of 68 degrees North latitude, other than oil and gas deposits located                                         
24 in a lease or property that includes land north of 68 degrees North latitude                                        
25 or that is subject to AS 43.55.011(p) or, before January 1, 2027, from                                              
26 which commercial production has not begun, as adjusted under                                                        
27            AS 43.55.170;                                                                                            
28 (C)  from leases or properties subject to AS 43.55.011(p) is                                                        
29 the gross value at the point of production of that oil, less 1/12 the                                               
30 producer's lease expenditures under AS 43.55.165 for the calendar year                                              
31 incurred to explore for, develop, or produce oil and gas deposits located in                                        
01 leases or properties subject to AS 43.55.011(p) or, before January 1, 2027,                                         
02 located in leases or properties in the state outside the Cook Inlet                                                 
03 sedimentary basin, no part of which is north of 68 degrees North latitude                                           
04 from which commercial production has not begun, as adjusted under                                                   
05            AS 43.55.170;                                                                                            
06 (D)  from leases or properties in the state no part of which is                                                     
07 north of 68 degrees North latitude, other than leases or properties subject                                         
08 to (B) or (C) of this paragraph, is the gross value at the point of                                                 
09 production of that oil less 1/12 the producer's lease expenditures under                                            
10 AS 43.55.165 for the calendar year incurred to explore for, develop, or                                             
11 produce oil and gas deposits located in the state south of 68 degrees North                                         
12 latitude, other than oil and gas deposits located in a lease or property in                                         
13 the state that includes land north of 68 degrees North latitude, and                                                
14 excluding lease expenditures that are deductible under (B) or (C) of this                                           
15 paragraph or would be deductible under (B) or (C) of this paragraph if                                              
16 not prohibited by (b) of this section, as adjusted under AS 43.55.170; a                                            
17            separate monthly production tax value shall be calculated for                                            
18 (i)  oil produced from each lease or property in the                                                                
19                 Cook Inlet sedimentary basin;                                                                       
20 (ii)  oil produced from each lease or property outside                                                              
21 the Cook Inlet sedimentary basin, no part of which is north of 68                                                   
22 degrees North latitude, other than leases or properties subject to                                                  
23                 (C) of this paragraph [(3) OF THIS SUBSECTION].                                                     
24    * Sec. 26. AS 43.55.165(a), as amended by sec. 29, ch. 4, 4SSLA 2016, is amended to read:                          
25 (a)  For purposes of this chapter, a producer's lease expenditures for a calendar                                       
26       year are                                                                                                          
27                 (1)  costs, other than items listed in (e) of this section, that are                                    
28 (A)  incurred by the producer during the calendar year after                                                            
29 March 31, 2006, to explore for, develop, or produce oil or gas deposits located                                         
30 within the producer's leases or properties in the state or, in the case of land in                                      
31 which the producer does not own an operating right, operating interest, or                                              
01            working interest, to explore for oil or gas deposits within other land in the                                
02            state; and                                                                                                   
03                      (B)  allowed by the department by regulation, based on the                                         
04            department's determination that the costs satisfy the following three                                        
05            requirements:                                                                                                
06                           (i)  the costs must be incurred upstream of the point of                                      
07                 production of oil and gas;                                                                              
08                           (ii)  the costs must be ordinary and necessary costs of                                       
09                 exploring for, developing, or producing, as applicable, oil or gas                                      
10                 deposits; and                                                                                           
11 (iii)  the costs must be direct costs of exploring for,                                                                 
12                 developing, or producing, as applicable, oil or gas deposits; [AND]                                     
13 (2)  a reasonable allowance for that calendar year, as determined under                                                 
14 regulations adopted by the department, for overhead expenses that are directly related                                  
15       to exploring for, developing, or producing, as applicable, the oil or gas deposits; and                       
16 (3)  lease expenditures incurred in a previous year, subject to (m)                                                 
17       and (n) of this section, that                                                                                 
18 (A)  met the requirements of AS 43.55.160(e) in the year that                                                       
19            the lease expenditures were incurred;                                                                    
20 (B)  have not been deducted in the determination of the                                                             
21 production tax value of oil and gas under AS 43.55.160(a) in a previous                                             
22            calendar year;                                                                                           
23                      (C)  were not the basis of a credit under this title; and                                      
24 (D)  were incurred to explore for, develop, or produce an oil                                                       
25            or gas deposit located north of 68 degrees North latitude.                                             
26    * Sec. 27. AS 43.55.165 is amended by adding new subsections to read:                                              
27 (m)  Beginning January 1 of the eighth calendar year after a lease expenditure                                          
28 is carried forward under (a)(3) of this section, the lease expenditure shall decrease in                                
29 value each year by one-tenth of the amount carried forward in the first calendar year.                                  
30 A lease expenditure carried forward under this section may not decrease in value for a                                  
31       partial calendar year.                                                                                            
01 (n)  A lease expenditure carried forward under (a)(3) of this section may not                                           
02 reduce a taxpayer's gross value at the point of production by an amount that exceeds                                    
03 the gross value at the point of production of the oil and gas produced from the lease or                                
04 property where the lease expenditure was incurred during the calendar year the lease                                    
05       expenditure is applied.                                                                                           
06    * Sec. 28. AS 43.98.050 is amended to read:                                                                        
07            Sec. 43.98.050. Duties. The duties of the board include the following:                                     
08                 (1)  establish and maintain a salient collection of information related to                              
09       oil and gas exploration, development, and production in the state and related to tax                              
10       structures, rates, and credits in other regions with oil and gas resources;                                       
11 (2)  review historical, current, and potential levels of investment in the                                              
12       state's oil and gas sector;                                                                                       
13 (3)  identify factors that affect investment in oil and gas exploration,                                                
14 development, and production in the state, including tax structure, rates, and credits;                                  
15 royalty requirements; infrastructure; workforce availability; and regulatory                                            
16       requirements;                                                                                                     
17 (4)  review the competitive position of the state to attract and maintain                                               
18 investment in the oil and gas sector in the state as compared to the competitive                                        
19       position of other regions with oil and gas resources;                                                             
20 (5)  in order to facilitate the work of the board, establish procedures to                                              
21 accept and keep confidential information that is beneficial to the work of the board,                                   
22 including the creation of a secure data room and confidentiality agreements to be                                       
23       signed by individuals having access to confidential information;                                                  
24 (6)  make written findings and recommendations to the Alaska State                                                      
25       Legislature before                                                                                                
26 (A)  January 31, 2015, or as soon thereafter as practicable,                                                            
27            regarding                                                                                                    
28 (i)  changes to the state's regulatory environment and                                                                  
29 permitting structure that would be conducive to encouraging increased                                                   
30 investment while protecting the interests of the people of the state and                                                
31                 the environment;                                                                                        
01                           (ii)  the status of the oil and gas industry labor pool in                                    
02                 the state and the effectiveness of workforce development efforts by the                                 
03                 state;                                                                                                  
04                           (iii)  the status of the oil-and-gas-related infrastructure                                   
05                 of the state, including a description of infrastructure deficiencies; and                               
06                           (iv)  the competitiveness of the state's fiscal oil and gas                                   
07                 tax regime when compared to other regions of the world;                                                 
08                      (B)  January 15, 2017, regarding                                                                   
09                           (i)  the state's tax structure and rates on oil and gas                                       
10                 produced south of 68 degrees North latitude;                                                            
11 (ii)  a tax structure that takes into account the unique                                                                
12 economic circumstances for each oil and gas producing area south of                                                     
13                 68 degrees North latitude;                                                                              
14 (iii)  a reduction in the gross value at the point of                                                                   
15 production for oil and gas produced south of 68 degrees North latitude                                                  
16 that is similar to the reduction in gross value at the point of production                                              
17                 in AS 43.55.160(f) and former AS 43.55.160(g) [(g)];                                                
18 (iv)  other incentives for oil and gas production south of                                                              
19                 68 degrees North latitude;                                                                              
20 (C)  January 31, 2021, or as soon thereafter as practicable,                                                            
21            regarding                                                                                                    
22 (i)  changes to the state's fiscal regime that would be                                                                 
23 conducive to increased and ongoing long-term investment in and                                                          
24                 development of the state's oil and gas resources;                                                       
25 (ii)  alternative means for increasing the state's ability to                                                           
26 attract and maintain investment in and development of the state's oil                                                   
27                 and gas resources; and                                                                                  
28 (iii)  a review of the current effectiveness and future                                                                 
29 value of any provisions of the state's oil and gas tax laws that are                                                    
30                 expiring in the next five years.                                                                        
31    * Sec. 29. AS 43.55.024(j), 43.55.029, and 43.55.160(g) are repealed.                                              
01    * Sec. 30. The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03 LEGISLATIVE WORKING GROUP. (a) A legislative working group is established                                               
04 to analyze the Cook Inlet fiscal regime for oil and gas, review the state's tax structure and                           
05 rates on oil and gas produced south of 68 degrees North latitude, recommend changes to the                              
06 legislature for consideration during the Second Regular Session of the Thirtieth Alaska State                           
07 Legislature, and develop terms for a comprehensive fiscal regime, including                                             
08            (1)  a tax structure that accounts for the unique circumstances for each oil and                             
09 gas producing area south of 68 degrees North latitude;                                                                  
10 (2)  incentives other than direct monetary support from the state for the                                               
11 exploration, development, and production of oil and gas south of 68 degrees North latitude;                             
12 (3)  consideration of the competitiveness of the area south of 68 degrees North                                         
13 latitude to attract new oil and gas development;                                                                        
14 (4)  consideration of the unique market considerations of the Cook Inlet                                                
15 sedimentary basin and the need to support energy supply security for communities in                                     
16 Southcentral Alaska;                                                                                                    
17 (5)  alternative means of state support for the exploration, development, and                                           
18 production of oil and gas in the Cook Inlet sedimentary basin, including loan guarantees or                             
19 other financial support through the Alaska Industrial Development and Export Authority, or                              
20 other state corporation or entity;                                                                                      
21 (6)  the applicability of the recommended tax structure to gas currently subject                                        
22 to AS 43.55.011(o).                                                                                                     
23 (b)  The recommended changes under (a) of this section may not include refundable or                                    
24 deductible tax credits or carried-forward lease expenditures.                                                           
25       (c)  The working group consists of                                                                                
26 (1)  two co-chairs, one of whom is a member of the house of representatives                                             
27 appointed by the speaker of the house of representatives, and one of whom is a member of the                            
28 senate appointed by the president of the senate; and                                                                    
29 (2)  members appointed by the co-chairs; members must be legislators and                                                
30 must include members of the majority and minority caucuses.                                                             
31 (d)  The co-chairs of the working group may form an advisory group to the working                                       
01 group, composed of members who are not legislators and who have expertise and skills to                                 
02 assist in the review and development of a new plan for the tax structure and rates on oil and                           
03 gas produced south of 68 degrees North latitude. The members of an advisory group may                                   
04 include commissioners or employees of state departments, members of the oil and gas                                     
05 industry or trade associations, and economists.                                                                         
06       (e)  The working group may be supported by legislative consultants under contract                                 
07 through the Legislative Budget and Audit Committee.                                                                     
08    * Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section to                         
09 read:                                                                                                                   
10 APPLICABILITY. (a) The additional limitations on the use of tax credits in                                              
11 AS 43.55.011(q), added by sec. 8 of this Act, AS 43.55.023(c), as amended by sec. 16 of this                            
12 Act, AS 43.55.024(i), as amended by sec. 17 of this Act, and AS 43.55.025(i), as amended by                             
13 sec. 18 of this Act, apply to credits applied to reduce a tax liability for a tax year starting on or                   
14 after the effective date of secs. 8 and 16 - 18 of this Act.                                                            
15 (b)  AS 43.55.023(b), as amended by sec. 15 of this Act, applies to lease expenditures                                  
16 incurred on or after the effective date of sec. 15 of this Act.                                                         
17 (c)  The repeal of AS 43.55.029 by sec. 29 of this Act applies to a credit applied for on                               
18 or after the effective date of sec. 29 of this Act.                                                                     
19    * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to                         
20 read:                                                                                                                   
21 TRANSITION: CARRIED-FORWARD LEASE EXPENDITURES.                                                                         
22 AS 43.55.165(a)(3), (m), and (n), added by secs. 26 and 27 of this Act, apply to a lease                                
23 expenditure incurred on or after the effective date of secs. 26 and 27 of this Act.                                     
24    * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to                         
25 read:                                                                                                                   
26 TRANSITION: ASSIGNMENT OF TAX CREDIT CERTIFICATES.                                                                      
27 Notwithstanding the repeal of AS 43.55.029 by sec. 29 of this Act, the Department of                                    
28 Revenue may continue to apply and enforce AS 43.55.029 as that section read the day before                              
29 the effective date of sec. 29 of this Act for a credit applied for before the effective date of sec.                    
30 29 of this Act.                                                                                                         
31    * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to                         
01 read:                                                                                                                   
02       TRANSITION: PAYMENT OF TAX; FILING. (a) Notwithstanding the amendments                                            
03 to AS 43.55.020 by secs. 10 - 14 of this Act,                                                                           
04 (1)  a person subject to tax under AS 43.55 that is required to make one or                                             
05 more installment payments of estimated tax or other payments of tax under AS 43.55.020 for                              
06 production before the effective date of secs. 10 - 14 of this Act shall pay the tax under                               
07 AS 43.55.020, as that section read on the day before the effective date of secs. 10 - 14 of this                        
08 Act;                                                                                                                    
09            (2)  an unpaid amount of an installment payment required under AS 43.55.020                                  
10 for production before the effective date of secs. 10 - 14 of this Act that is not paid when due                         
11 bears interest under AS 43.55.020, as that section read on the day before the effective date of                         
12 secs. 10 - 14 of this Act;                                                                                              
13 (3)  an overpayment of an installment payment required under AS 43.55.020                                               
14 for production before the effective date of secs. 10 - 14 of this Act bears interest under                              
15 AS 43.55.020, as that section read on the day before the effective date of secs. 10 - 14 of this                        
16 Act.                                                                                                                    
17 (b)  The Department of Revenue may continue to apply and enforce AS 43.55.020, as                                       
18 that section read on the day before the effective date of secs. 10 - 14 of this Act, for a tax or                       
19 installment payment for production before the effective date of secs. 10 - 14 of this Act.                              
20    * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to                         
21 read:                                                                                                                   
22 TRANSITION: GROSS VALUE REDUCTION. Notwithstanding the repeal of                                                        
23 AS 43.55.160(g) by sec. 29 of this Act and the amendments to AS 43.55.020(a), 43.55.023(b),                             
24 43.55.024(i), and 43.55.160(a) and (h) by secs. 10, 15, 17, 22, and 25 of this Act, a taxpayer                          
25 who produces oil or gas before January 1, 2018, that qualifies for a reduction in gross value                           
26 under AS 43.55.160(g), as that subsection read on the day before the effective date of sec. 29                          
27 of this Act, may reduce the gross value at the point of production of and may qualify for a                             
28 credit under AS 43.55.024(i) for that oil or gas, in accordance with AS 43.55.160(g) and                                
29 43.55.024(i), as those subsections read on the day before the effective date of sec. 29 of this                         
30 Act.                                                                                                                    
31    * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to                         
01 read:                                                                                                                   
02 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding any                                                           
03 contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in a                              
04 regulation that the regulation applies retroactively, a regulation adopted by the Department of                         
05 Revenue to implement, interpret, make specific, or otherwise carry out this Act may apply                               
06 retroactively to the effective date of the law implemented by the regulation.                                           
07    * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       RETROACTIVITY. Section 3 of this Act is retroactive to January 1, 2017.                                           
10    * Sec. 38. Sections 3, 30, 36, and 37 of this Act take effect immediately under                                    
11 AS 01.10.070(c).                                                                                                        
12    * Sec. 39. Section 26 of this Act takes effect on the effective date of sec. 29, ch. 4, 4SSLA                      
13 2016.                                                                                                                   
14    * Sec. 40. Except as provided in secs. 38 and 39 of this Act, this Act takes effect January 1,                     
15 2018.