Legislature(2015 - 2016)
2015-04-13 Senate Journal
Full Journal pdf2015-04-13 Senate Journal Page 0953 SB 39 CS FOR SENATE BILL NO. 39(L&C) "An Act repealing the film production tax credit; providing for an effective date by repealing the effective dates of secs. 31 - 33, ch. 51, SLA 2012; and providing for an effective date" was read the third time. Senator Coghill moved that the bill be returned to second reading for the purpose of specific amendments, those being Amendments No. 1 through 3. Without objection, the bill was returned to second reading. 2015-04-13 Senate Journal Page 0954 Senator Wielechowski offered Amendment No. 1 : Page 1, line 1, following "credit;": Insert "relating to the oil and gas production tax;" Page 1, following line 4: Insert a new bill section to read: "* Section 1. AS 43.55.024(j) is amended to read: (j) Except as otherwise provided in this subsection, a [A] producer may apply against the producer's tax liability for the calendar year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for each barrel of oil taxable under AS 43.55.011(e) that does not meet any of the criteria in AS 43.55.160(f) or (g) and that is produced during a calendar year after December 31, 2013, from leases or properties north of 68 degrees North latitude. Oil produced from each lease or property within a unit or nonunitized reservoir that has cumulatively produced 400,000,000 barrels of oil by the close of the most recent calendar year and from which the average daily production of oil from the unit or nonunitized reservoir during the most recent calendar year exceeded 20,000 barrels is not eligible for a credit under this subsection. A tax credit under this subsection may not reduce a producer's tax liability for a calendar year under AS 43.55.011(e) below the amount calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable oil subject to this subsection produced during a month of the calendar year is (1) $8 for each barrel of taxable oil if the average gross value at the point of production for the month is less than $80 a barrel; (2) $7 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $80 a barrel, but less than $90 a barrel; (3) $6 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $90 a barrel, but less than $100 a barrel; (4) $5 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $100 a barrel, but less than $110 a barrel; 2015-04-13 Senate Journal Page 0955 (5) $4 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $110 a barrel, but less than $120 a barrel; (6) $3 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $120 a barrel, but less than $130 a barrel; (7) $2 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $130 a barrel, but less than $140 a barrel; (8) $1 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $140 a barrel, but less than $150 a barrel; (9) zero if the average gross value at the point of production for the month is greater than or equal to $150 a barrel." Page 1, line 5: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Page 3, line 16: Delete "sec. 7" Insert "sec. 8" Page 3, line 19: Delete "sec. 7" Insert "sec. 8" Page 3, line 23: Delete "sec. 7" Insert "sec. 8" Page 3, lines 25 - 26: Delete "sec. 7" Insert "sec. 8" Page 3, following line 27: Insert a new bill section to read: "* Sec. 14. Section 1 of this Act takes effect January 1, 2016." Renumber the following bill sections accordingly. 2015-04-13 Senate Journal Page 0956 Page 3, line 28: Delete "Sections 1, 3, 5 - 7, and 9 - 11" Insert "Sections 2, 4, 6 - 8, and 10 - 12" Page 3, line 29: Delete "Section 2" Insert "Section 3" Page 3, line 31: Delete "Section 4" Insert "Section 5" Page 4, line 2: Delete "secs. 12 - 14" Insert "secs. 13 - 16" Senator Wielechowski moved for the adoption of Amendment No. 1. Senator MacKinnon objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSSB 39(L&C) Second Reading Amendment No. 1 YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Egan, Ellis, Gardner, Olson, Wielechowski Nays: Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire, Meyer, Micciche, Stedman, Stevens, Stoltze and so, Amendment No. 1 failed. Senator Wielechowski offered Amendment No. 2 : Page 1, line 1, following "credit;": Insert "relating to the qualified in-state oil refinery infrastructure expenditures tax credit against the Alaska net income tax;" 2015-04-13 Senate Journal Page 0957 Page 1, following line 4: Insert a new bill section to read: "* Section 1. AS 43.20.053(a) is amended to read: (a) A taxpayer that owns an in-state oil refinery whose primary function is the manufacturing and sale of refined petroleum products to third parties in arm's length transactions may apply a credit against the tax due under this chapter for a qualified infrastructure expenditure incurred in the state for a tax year beginning after December 31, 2014, and before January 1, 2020. The total amount of credit a taxpayer may receive under this section may not exceed the lesser of 40 percent of qualified infrastructure expenditures incurred in the state during the tax year or $10,000,000 for each in-state refinery for which qualified expenditures are incurred. To qualify for a credit under this section, a taxpayer that is a corporation, joint venture, or partnership shall be headquartered in the state and be at least 51 percent owned by residents of the state." Page 1, line 5: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Page 3, line 16: Delete "sec. 7" Insert "sec. 8" Page 3, line 19: Delete "sec. 7" Insert "sec. 8" Page 3, line 23: Delete "sec. 7" Insert "sec. 8" Page 3, lines 25 - 26: Delete "sec. 7" Insert "sec. 8" 2015-04-13 Senate Journal Page 0958 Page 3, following line 27: Insert a new bill section to read: "* Sec. 13. Section 1 of this Act takes effect January 1, 2016." Renumber the following bill sections accordingly. Page 3, line 28: Delete "Sections 1, 3, 5 - 7, and 9 - 11" Insert "Sections 2, 4, 6 - 8, and 10 - 12" Page 3, line 29: Delete "Section 2" Insert "Section 3" Page 3, line 31: Delete "Section 4" Insert "Section 5" Page 4, line 2: Delete "secs. 12 - 14" Insert "secs. 13 - 16" Senator Wielechowski moved for the adoption of Amendment No. 2. Senator MacKinnon objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 39(L&C) Second Reading Amendment No. 2 YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Egan, Ellis, Gardner, Olson, Wielechowski Nays: Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire, Meyer, Micciche, Stedman, Stevens, Stoltze and so, Amendment No. 2 failed. 2015-04-13 Senate Journal Page 0959 Senator Wielechowski offered Amendment No. 3 : Page 1, line 1, following "credit;": Insert "relating to the oil and gas production tax;" Page 1, following line 4: Insert a new bill section to read: "* Section 1. AS 43.55.160(f) is amended to read: (f) On and after January 1, 2014, in the calculation of an annual production tax value of a producer under (a)(1)(A) or (h)(1) of this section, the gross value at the point of production of oil or gas produced from a lease or property north of 68 degrees North latitude [MEETING ONE OR MORE OF THE FOLLOWING CRITERIA] is reduced by 10 [20] percent for the first portion of a calendar year after the commencement of commercial production and the three immediately following calendar years, if [: (1)] the oil or gas is produced from a lease or property that is not located within a unit established under AS 38.05.180(p) for more than 20 years before the first commercial production on that lease or property, as that unit existed on the effective date of this section, and is [DOES NOT CONTAIN A LEASE THAT WAS] within a unit that did not have commercial production before January 1, 2014 [ON JANUARY 1, 2003; (2) THE OIL OR GAS IS PRODUCED FROM A PARTICIPATING AREA ESTABLISHED AFTER DECEMBER 31, 2011, THAT IS WITHIN A UNIT FORMED UNDER AS 38.05.180(p) BEFORE JANUARY 1, 2003, IF THE PARTICIPATING AREA DOES NOT CONTAIN A RESERVOIR THAT HAD PREVIOUSLY BEEN IN A PARTICIPATING AREA ESTABLISHED BEFORE DECEMBER 31, 2011; (3) THE OIL OR GAS IS PRODUCED FROM ACREAGE THAT WAS ADDED TO AN EXISTING PARTICIPATING AREA BY THE DEPARTMENT OF NATURAL RESOURCES ON AND AFTER JANUARY 1, 2014, AND THE PRODUCER DEMONSTRATES TO THE DEPARTMENT THAT THE VOLUME OF OIL OR GAS PRODUCED IS FROM ACREAGE ADDED TO AN EXISTING PARTICIPATING AREA]. This subsection does not apply to gas produced before 2022 that is used in the state or to gas produced on and after January 1, 2022. A reduction under this subsection 2015-04-13 Senate Journal Page 0960 may not reduce the gross value at the point of production below zero. [IN THIS SUBSECTION, "PARTICIPATING AREA" MEANS A RESERVOIR OR PORTION OF A RESERVOIR PRODUCING OR CONTRIBUTING TO PRODUCTION AS APPROVED BY THE DEPARTMENT OF NATURAL RESOURCES.]" Page 1, line 5: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Page 3, line 16: Delete "sec. 7" Insert "sec. 8" Page 3, line 19: Delete "sec. 7" Insert "sec. 8" Page 3, line 23: Delete "sec. 7" Insert "sec. 8" Page 3, lines 25 - 26: Delete "sec. 7" Insert "sec. 8" Page 3, following line 27: Insert a new bill section to read: "* Sec. 13. Section 1 of this Act takes effect January 1, 2016." Renumber the following bill sections accordingly. Page 3, line 28: Delete "Sections 1, 3, 5 - 7, and 9 - 11" Insert "Sections 2, 4, 6 - 8, and 10 - 12" 2015-04-13 Senate Journal Page 0961 Page 3, line 29: Delete "Section 2" Insert "Section 3" Page 3, line 31: Delete "Section 4" Insert "Section 5" Page 4, line 2: Delete "secs. 12 - 14" Insert "secs. 13 - 16" Senator Wielechowski moved for the adoption of Amendment No. 3. Senator MacKinnon objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSSB 39(L&C) Second Reading Amendment No. 3 YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Egan, Ellis, Gardner, Olson, Wielechowski Nays: Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire, Meyer, Micciche, Stedman, Stevens, Stoltze and so, Amendment No. 3 failed. CS FOR SENATE BILL NO. 39(L&C) was automatically in third reading. The question being: "Shall CS FOR SENATE BILL NO. 39(L&C) "An Act repealing the film production tax credit; providing for an effective date by repealing the effective dates of secs. 31 - 33, ch. 51, SLA 2012; and providing for an effective date" pass the Senate?" The roll was taken with the following result: 2015-04-13 Senate Journal Page 0962 CSSB 39(L&C) Third Reading - Final Passage Effective Dates YEAS: 14 NAYS: 6 EXCUSED: 0 ABSENT: 0 Yeas: Bishop, Coghill, Costello, Dunleavy, Giessel, Huggins, Kelly, MacKinnon, McGuire, Meyer, Micciche, Stedman, Stevens, Stoltze Nays: Egan, Ellis, Gardner, Hoffman, Olson, Wielechowski and so, CS FOR SENATE BILL NO. 39(L&C) passed the Senate. Senator Coghill moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clauses. Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.