Legislature(1997 - 1998)
1998-02-12 Senate Journal
Full Journal pdf1998-02-12 Senate Journal Page 2500 SB 294 SENATE BILL NO. 294 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act providing for a Cook Inlet watershed water quality monitoring project tax credit under the Alaska Net Income Tax Act; and providing for an effective date. was read the first time and referred to the Resources and Finance Committees. Fiscal notes published today from Department of Revenue, Department of Environmental Conservation. Governors transmittal letter dated February 11: Dear President Miller: In the interest of ensuring healthy communities in Alaska and continuing the state's partnership with industry for responsible development, I am transmitting a bill offering corporate tax credits to companies for voluntary water quality monitoring programs in the Cook Inlet area. The tax credit is intended as an incentive to private industry to expand their efforts in safeguarding our precious watersheds. The concept for this bill was proposed by a group of Cook Inlet area stakeholders representing the oil and gas industry, Native corporations, commercial and sport fishing, tourism, environmental groups, and private landowners. 1998-02-12 Senate Journal Page 2501 SB 294 The tax credit provided under the bill is limited to certain expenditures for water quality monitoring projects in the Cook Inlet watershed that meet specific criteria. A taxpayer would be allowed a 60 percent credit against the Alaska Net Income Tax for qualified direct expenditures on an approved water quality project. The credit would be limited to $100,000 per year or 50 percent of the tax liability, whichever is less. Only qualified project expenditures in the state in a tax year beginning after December 31, 1998 and before January 1, 2004 are eligible for a credit under the bill, but carry- forwards may be made to tax years beginning before January 1, 2007. To be eligible for the credit, a taxpayer must submit a project design to the Department of Environmental Conservation (DEC) for approval. The department would also certify the direct expenditures for qualified water quality monitoring projects. The DEC may seek help from an advisory group with expertise in water quality projects to evaluate project designs or certify expenses. This bill will encourage private industry to invest in qualified water quality monitoring projects in the Cook Inlet watershed. If this tax credit program is successful, it will serve as a model for additional water quality monitoring programs across the state. Sincerely, /s/ Tony Knowles Governor