00 SENATE BILL NO. 5005 01 "An Act relating to the oil and gas production tax, tax payments, and credits; relating to 02 oil and gas lease expenditures and production tax credits for municipal entities; relating 03 to the interest applicable to delinquent tax; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 43.05.225, as amended by sec. 8, ch. 4, 4SSLA 2016, is repealed and 06 reenacted to read: 07 Sec. 43.05.225. Interest. Unless otherwise provided, 08 (1) a delinquent tax under this title, 09 (A) before January 1, 2014, bears interest in each calendar 10 quarter at the rate of five percentage points above the annual rate charged 11 member banks for advances by the 12th Federal Reserve District as of the first 12 day of that calendar quarter, or at the annual rate of 11 percent, whichever is 13 greater, compounded quarterly as of the last day of that quarter; 14 (B) on and after January 1, 2014, and before January 1, 2017, 01 bears interest in each calendar quarter at the rate of three percentage points 02 above the annual rate charged member banks for advances by the 12th Federal 03 Reserve District as of the first day of that calendar quarter; 04 (C) on and after January 1, 2017, bears interest 05 (i) for the first four years after a tax becomes 06 delinquent, in each calendar quarter at the rate of five percentage points 07 above the annual rate charged member banks for advances by the 12th 08 Federal Reserve District as of the first day of that calendar quarter, 09 compounded quarterly as of the last day of that quarter; and 10 (ii) after the first four years after a tax becomes 11 delinquent, in each calendar quarter at a rate of five percentage points 12 above the annual rate charged member banks for advances by the 12th 13 Federal Reserve District as of the first day of that calendar quarter; 14 (2) the interest rate is 12 percent a year for 15 (A) delinquent fees payable under AS 05.15.095(c); and 16 (B) unclaimed property that is not timely paid or delivered, as 17 allowed by AS 34.45.470(a). 18 * Sec. 2. AS 43.55.011(f) is amended to read: 19 (f) The levy of tax under (e) of this section for 20 (1) oil and gas produced before January 1, 2017 [2022], from leases or 21 properties that include land north of 68 degrees North latitude, other than gas subject 22 to (o) of this section, may not be less than 23 (A) four percent of the gross value at the point of production 24 when the average price per barrel for Alaska North Slope crude oil for sale on 25 the United States West Coast during the calendar year for which the tax is due 26 is more than $25; 27 (B) three percent of the gross value at the point of production 28 when the average price per barrel for Alaska North Slope crude oil for sale on 29 the United States West Coast during the calendar year for which the tax is due 30 is over $20 but not over $25; 31 (C) two percent of the gross value at the point of production 01 when the average price per barrel for Alaska North Slope crude oil for sale on 02 the United States West Coast during the calendar year for which the tax is due 03 is over $17.50 but not over $20; 04 (D) one percent of the gross value at the point of production 05 when the average price per barrel for Alaska North Slope crude oil for sale on 06 the United States West Coast during the calendar year for which the tax is due 07 is over $15 but not over $17.50; or 08 (E) zero percent of the gross value at the point of production 09 when the average price per barrel for Alaska North Slope crude oil for sale on 10 the United States West Coast during the calendar year for which the tax is due 11 is $15 or less; [AND] 12 (2) oil and gas produced on or after January 1, 2017, and before  13 January 1, 2022, from leases or properties that include land north of 68 degrees  14 North latitude, other than gas subject to (o) of this section, may not be less than  15 (A) five percent of the gross value at the point of production  16 when the average price per barrel for Alaska North Slope crude oil for  17 sale on the United States West Coast during the calendar year for which  18 the tax is due is more than $55;  19 (B) four percent of the gross value at the point of  20 production when the average price per barrel for Alaska North Slope  21 crude oil for sale on the United States West Coast during the calendar  22 year for which the tax is due is over $25 but not over $55;  23 (C) three percent of the gross value at the point of  24 production when the average price per barrel for Alaska North Slope  25 crude oil for sale on the United States West Coast during the calendar  26 year for which the tax is due is over $20 but not over $25;  27 (D) two percent of the gross value at the point of production  28 when the average price per barrel for Alaska North Slope crude oil for  29 sale on the United States West Coast during the calendar year for which  30 the tax is due is over $17.50 but not over $20;  31 (E) one percent of the gross value at the point of production  01 when the average price per barrel for Alaska North Slope crude oil for  02 sale on the United States West Coast during the calendar year for which  03 the tax is due is over $15 but not over $17.50; or  04 (F) zero percent of the gross value at the point of  05 production when the average price per barrel for Alaska North Slope  06 crude oil for sale on the United States West Coast during the calendar  07 year for which the tax is due is $15 or less; and  08 (3) oil produced on or [AND] after January 1, 2022, from leases or 09 properties that include land north of 68 degrees North latitude, may not be less than 10 (A) five percent of the gross value at the point of production  11 when the average price per barrel for Alaska North Slope crude oil for  12 sale on the United States West Coast during the calendar year for which  13 the tax is due is more than $55;  14 (B) four percent of the gross value at the point of production 15 when the average price per barrel for Alaska North Slope crude oil for sale on 16 the United States West Coast during the calendar year for which the tax is due 17 is over [MORE THAN] $25 but not over $55; 18 (C) [(B)] three percent of the gross value at the point of 19 production when the average price per barrel for Alaska North Slope crude oil 20 for sale on the United States West Coast during the calendar year for which the 21 tax is due is over $20 but not over $25; 22 (D) [(C)] two percent of the gross value at the point of 23 production when the average price per barrel for Alaska North Slope crude oil 24 for sale on the United States West Coast during the calendar year for which the 25 tax is due is over $17.50 but not over $20; 26 (E) [(D)] one percent of the gross value at the point of 27 production when the average price per barrel for Alaska North Slope crude oil 28 for sale on the United States West Coast during the calendar year for which the 29 tax is due is over $15 but not over $17.50; or 30 (F) [(E)] zero percent of the 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 $15 or less. 03 * Sec. 3. AS 43.55.020(a), as amended by sec. 16, ch. 4, 4SSLA 2016, is amended to read: 04 (a) For a calendar year, a producer subject to tax under AS 43.55.011 shall pay 05 the tax as follows: 06 (1) for oil and gas produced before January 1, 2014, an installment 07 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 08 as allowed by law, is due for each month of the calendar year on the last day of the 09 following month; except as otherwise provided under (2) of this subsection, the 10 amount of the installment payment is the sum of the following amounts, less 1/12 of 11 the tax credits that are allowed by law to be applied against the tax levied by 12 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 13 not be less than zero: 14 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 15 produced from leases or properties in the state outside the cook inlet 16 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 17 the greater of 18 (i) zero; or 19 (ii) the sum of 25 percent and the tax rate calculated for 20 the month under AS 43.55.011(g) multiplied by the remainder obtained 21 by subtracting 1/12 of the producer's adjusted lease expenditures for the 22 calendar year of production under AS 43.55.165 and 43.55.170 that are 23 deductible for the oil and gas under AS 43.55.160 from the gross value 24 at the point of production of the oil and gas produced from the leases or 25 properties during the month for which the installment payment is 26 calculated; 27 (B) for oil and gas produced from leases or properties subject 28 to AS 43.55.011(f), the greatest of 29 (i) zero; 30 (ii) zero percent, one percent, two percent, three 31 percent, or four percent, as applicable, of the gross value at the point of 01 production of the oil and gas produced from the leases or properties 02 during the month for which the installment payment is calculated; or 03 (iii) 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 those leases 09 or properties during the month for which the installment payment is 10 calculated; 11 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 12 each lease or property, the greater of 13 (i) zero; or 14 (ii) the sum of 25 percent and the tax rate calculated for 15 the month under AS 43.55.011(g) multiplied by the remainder obtained 16 by subtracting 1/12 of the producer's adjusted lease expenditures for the 17 calendar year of production under AS 43.55.165 and 43.55.170 that are 18 deductible under AS 43.55.160 for the oil or gas, respectively, 19 produced from the lease or property from the gross value at the point of 20 production of the oil or gas, respectively, produced from the lease or 21 property during the month for which the installment payment is 22 calculated; 23 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 24 (i) the sum of 25 percent and the tax rate calculated for 25 the month under AS 43.55.011(g) multiplied by the remainder obtained 26 by 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, but not less than zero; or 01 (ii) four percent of the gross value at the point of 02 production of the oil and gas produced from the leases or properties 03 during the month, but not less than zero; 04 (2) an amount calculated under (1)(C) of this subsection for oil or gas 05 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 06 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 07 applicable, for gas or set out in AS 43.55.011(k) for oil, but substituting in 08 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 09 gas produced during the month for the amount of taxable gas produced during the 10 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced 11 during the month for the amount of taxable oil produced during the calendar year; 12 (3) an installment payment of the estimated tax levied by 13 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 14 on the last day of the following month; the amount of the installment payment is the 15 sum of 16 (A) the applicable tax rate for oil provided under 17 AS 43.55.011(i), multiplied by the gross value at the point of production of the 18 oil taxable under AS 43.55.011(i) and produced from the lease or property 19 during the month; and 20 (B) the applicable tax rate for gas provided under 21 AS 43.55.011(i), multiplied by the gross value at the point of production of the 22 gas taxable under AS 43.55.011(i) and produced from the lease or property 23 during the month; 24 (4) any amount of tax levied by AS 43.55.011, net of any credits 25 applied as allowed by law, that exceeds the total of the amounts due as installment 26 payments of estimated tax is due on March 31 of the year following the calendar year 27 of production; 28 (5) for oil and gas produced on and after January 1, 2014, and before 29 January 1, 2022, an installment payment of the estimated tax levied by 30 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 31 month of the calendar year on the last day of the following month; except as otherwise 01 provided under (6) of this subsection, the amount of the installment payment is the 02 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 03 applied against the tax levied by AS 43.55.011(e) for the calendar year, except in the  04 case of a tax credit under AS 43.55.024(j), the amount of the tax credit calculated  05 for the applicable month that would not result in an installment payment that  06 would be less than the amount in (B)(ii) of this paragraph, but the amount of the 07 installment payment may not be less than zero: 08 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 09 produced from leases or properties in the state outside the Cook Inlet 10 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 11 the greater of 12 (i) zero; or 13 (ii) 35 percent multiplied by the remainder obtained by 14 subtracting 1/12 of the producer's adjusted lease expenditures for the 15 calendar year of production under AS 43.55.165 and 43.55.170 that are 16 deductible for the oil and gas under AS 43.55.160 from the gross value 17 at the point of production of the oil and gas produced from the leases or 18 properties during the month for which the installment payment is 19 calculated; 20 (B) for oil and gas produced from leases or properties subject 21 to AS 43.55.011(f), the greatest of 22 (i) zero; 23 (ii) zero percent, one percent, two percent, three 24 percent, [OR] four percent, or five percent, as applicable, of the gross 25 value at the point of production of the oil and gas produced from the 26 leases or properties during the month for which the installment 27 payment is calculated; or 28 (iii) 35 percent multiplied by the remainder obtained by 29 subtracting 1/12 of the producer's adjusted lease expenditures for the 30 calendar year of production under AS 43.55.165 and 43.55.170 that are 31 deductible for the oil and gas under AS 43.55.160 from the gross value 01 at the point of production of the oil and gas produced from those leases 02 or properties during the month for which the installment payment is 03 calculated, except that, for the purposes of this calculation, a reduction 04 from the gross value at the point of production may apply for oil and 05 gas subject to AS 43.55.160(f) or (g); 06 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 07 each lease or property, the greater of 08 (i) zero; or 09 (ii) 35 percent multiplied by the remainder obtained by 10 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 under AS 43.55.160 for the oil or gas, respectively, 13 produced from the lease or property from the gross value at the point of 14 production of the oil or gas, respectively, produced from the lease or 15 property during the month for which the installment payment is 16 calculated; 17 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 18 (i) 35 percent multiplied by the remainder obtained by 19 subtracting 1/12 of the producer's adjusted lease expenditures for the 20 calendar year of production under AS 43.55.165 and 43.55.170 that are 21 deductible for the oil and gas under AS 43.55.160 from the gross value 22 at the point of production of the oil and gas produced from the leases or 23 properties during the month for which the installment payment is 24 calculated, but not less than zero; or 25 (ii) four percent of the gross value at the point of 26 production of the oil and gas produced from the leases or properties 27 during the month, but not less than zero; 28 (6) an amount calculated under (5)(C) of this subsection for oil or gas 29 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 30 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 31 applicable, for gas or set out in AS 43.55.011(k) for oil, but substituting in 01 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 02 gas produced during the month for the amount of taxable gas produced during the 03 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced 04 during the month for the amount of taxable oil produced during the calendar year; 05 (7) for oil and gas produced on or after January 1, 2022, an installment 06 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 07 as allowed by law, is due for each month of the calendar year on the last day of the 08 following month; except as otherwise provided under (10) of this subsection, the 09 amount of the installment payment is the sum of the following amounts, less 1/12 of 10 the tax credits that are allowed by law to be applied against the tax levied by 11 AS 43.55.011(e) for the calendar year, except in the case of a tax credit under  12 AS 43.55.024(j), the amount of the tax credit calculated for the applicable month  13 that would not result in an installment payment that would be less than the  14 amount in (A)(ii) of this paragraph, but the amount of the installment payment may 15 not be less than zero: 16 (A) for oil produced from leases or properties subject to 17 AS 43.55.011(f), the greatest of 18 (i) zero; 19 (ii) zero percent, one percent, two percent, three 20 percent, [OR] four percent, or five percent, as applicable, of the gross 21 value at the point of production of the oil produced from the leases or 22 properties during the month for which the installment payment is 23 calculated; or 24 (iii) 35 percent multiplied by the remainder obtained by 25 subtracting 1/12 of the producer's adjusted lease expenditures for the 26 calendar year of production under AS 43.55.165 and 43.55.170 that are 27 deductible for the oil under AS 43.55.160(h)(1) from the gross value at 28 the point of production of the oil produced from those leases or 29 properties during the month for which the installment payment is 30 calculated, except that, for the purposes of this calculation, a reduction 31 from the gross value at the point of production may apply for oil 01 subject to AS 43.55.160(f) or 43.55.160(f) and (g); 02 (B) for oil produced before or during the last calendar year 03 under AS 43.55.024(b) for which the producer could take a tax credit under 04 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet 05 sedimentary basin, no part of which is north of 68 degrees North latitude, other 06 than leases or properties subject to AS 43.55.011(o) or (p), the greater of 07 (i) zero; or 08 (ii) 35 percent multiplied by the remainder obtained by 09 subtracting 1/12 of the producer's adjusted lease expenditures for the 10 calendar year of production under AS 43.55.165 and 43.55.170 that are 11 deductible for the oil under AS 43.55.160(h)(2) from the gross value at 12 the point of production of the oil produced from the leases or properties 13 during the month for which the installment payment is calculated; 14 (C) for oil and gas produced from leases or properties subject 15 to AS 43.55.011(p), except as otherwise provided under (8) of this subsection, 16 the sum of 17 (i) 35 percent multiplied by the remainder obtained by 18 subtracting 1/12 of the producer's adjusted lease expenditures for the 19 calendar year of production under AS 43.55.165 and 43.55.170 that are 20 deductible for the oil under AS 43.55.160(h)(3) from the gross value at 21 the point of production of the oil produced from the leases or properties 22 during the month for which the installment payment is calculated, but 23 not less than zero; and 24 (ii) 13 percent of the gross value at the point of 25 production of the gas produced from the leases or properties during the 26 month, but not less than zero; 27 (D) for oil produced from leases or properties in the state, no 28 part of which is north of 68 degrees North latitude, other than leases or 29 properties subject to (B), (C), or (F) of this paragraph, the greater of 30 (i) zero; or 31 (ii) 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 under AS 43.55.160(h)(4) from the gross value at 04 the point of production of the oil produced from the leases or properties 05 during the month for which the installment payment is calculated; 06 (E) for gas produced from each lease or property in the state 07 outside the Cook Inlet sedimentary basin, other than a lease or property subject 08 to AS 43.55.011(o) or (p), 13 percent of the gross value at the point of 09 production of the gas produced from the lease or property during the month for 10 which the installment payment is calculated, but not less than zero; 11 (F) for oil subject to AS 43.55.011(k), for each lease or 12 property, the greater of 13 (i) zero; or 14 (ii) 35 percent multiplied by the remainder obtained by 15 subtracting 1/12 of the producer's adjusted lease expenditures for the 16 calendar year of production under AS 43.55.165 and 43.55.170 that are 17 deductible under AS 43.55.160 for the oil produced from the lease or 18 property from the gross value at the point of production of the oil 19 produced from the lease or property during the month for which the 20 installment payment is calculated; 21 (G) for gas subject to AS 43.55.011(j) or (o), for each lease or 22 property, the greater of 23 (i) zero; or 24 (ii) 13 percent of the gross value at the point of 25 production of the gas produced from the lease or property during the 26 month for which the installment payment is calculated; 27 (8) an amount calculated under (7)(C) of this subsection may not 28 exceed four percent of the gross value at the point of production of the oil and gas 29 produced from leases or properties subject to AS 43.55.011(p) during the month for 30 which the installment payment is calculated; 31 (9) for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and 01 (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the point 02 of production is determined under AS 43.55.011(f)(1) - (3) [AS 43.55.011(f)(1) OR 03 (2)] but substituting the phrase "month for which the installment payment is 04 calculated" in AS 43.55.011(f)(1) - (3) [AS 43.55.011(f)(1) AND (2)] for the phrase 05 "calendar year for which the tax is due"; 06 (10) an amount calculated under (7)(F) or (G) of this subsection for oil 07 or gas subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 08 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 09 applicable, for gas, or set out in AS 43.55.011(k) for oil, but substituting in 10 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 11 gas produced during the month for the amount of taxable gas produced during the 12 calendar year and substituting in AS 43.55.011(k) the amount of taxable oil produced 13 during the month for the amount of taxable oil produced during the calendar year. 14 * Sec. 4. AS 43.55.020(i) is amended to read: 15 (i) Notwithstanding any contrary provision of AS 43.05.225 or (g) or (h) of 16 this section, if the amount of a tax payment, including an installment payment, due 17 under (a)(1) - (5) [(a)(1) - (4)] of this section is affected by the retroactive application 18 of a regulation adopted under this chapter, the department shall determine whether the 19 retroactive application of the regulation caused an underpayment or an overpayment of 20 the amount due and adjust the interest due on the affected payment as follows: 21 (1) if an underpayment of the amount due occurred, the department 22 shall waive interest that would otherwise accrue for the underpayment before the first 23 day of the second month following the month in which the regulation became 24 effective, if 25 (A) the department determines that the producer's 26 underpayment resulted because the regulation was not in effect when the 27 payment was due; and 28 (B) the producer demonstrates that it made a good faith 29 estimate of its tax obligation in light of the regulations then in effect when the 30 payment was due and paid the estimated tax; 31 (2) if an overpayment of the amount due occurred and the department 01 determines that the producer's overpayment resulted because the regulation was not in 02 effect when the payment was due, the obligation for a refund for the overpayment does 03 not begin to accrue interest earlier than the following, as applicable: 04 (A) except as otherwise provided under (B) of this paragraph, 05 the first day of the second month following the month in which the regulation 06 became effective; 07 (B) 90 days after an amended statement under AS 43.55.030(a) 08 and an application to request a refund of production tax paid is filed, if the 09 overpayment was for a period for which an amended statement under 10 AS 43.55.030(a) was required to be filed before the regulation became 11 effective. 12 * Sec. 5. AS 43.55.023(b), as amended by sec. 18, ch. 4, 4SSLA 2016, is amended to read: 13 (b) Before January 1, 2014, a producer or explorer may elect to take a tax 14 credit in the amount of 25 percent of a carried-forward annual loss. For lease 15 expenditures incurred on and after January 1, 2014, and before January 1, 2016, to 16 explore for, develop, or produce oil or gas deposits located north of 68 degrees North 17 latitude, a producer or explorer may elect to take a tax credit in the amount of 45 18 percent of a carried-forward annual loss. For lease expenditures incurred on and after 19 January 1, 2016, and before January 1, 2017, to explore for, develop, or produce oil 20 or gas deposits located north of 68 degrees North latitude, a producer or explorer may 21 elect to take a tax credit in the amount of 35 percent of a carried-forward annual loss. 22 For lease expenditures incurred on or after January 1, 2017, and before  23 January 1, 2018, to explore for, develop, or produce oil or gas deposits located  24 north of 68 degrees North latitude, a producer or explorer may elect to take a tax  25 credit in the amount of 15 percent of a carried-forward annual loss. A producer  26 or explorer may not elect to take a tax credit under this subsection for lease  27 expenditures incurred on or after January 1, 2018, to explore for, develop, or  28 produce oil or gas deposits located north of 68 degrees North latitude. For lease 29 expenditures incurred on or after January 1, 2014, and before January 1, 2017, to 30 explore for, develop, or produce oil or gas deposits located south of 68 degrees North 31 latitude, a producer or explorer may elect to take a tax credit in the amount of 25 01 percent of a carried-forward annual loss. For lease expenditures incurred on or after 02 January 1, 2017, to explore for, develop, or produce oil or gas deposits located south 03 of 68 degrees North latitude, a producer or explorer may elect to take a tax credit in 04 the amount of 15 percent of a carried-forward annual loss, except that a credit for lease 05 expenditures incurred to explore for, develop, or produce oil or gas deposits located in 06 the Cook Inlet sedimentary basin may only be taken if the expenditure is incurred 07 before January 1, 2018. A credit under this subsection may be applied against a tax 08 levied by AS 43.55.011(e). For purposes of this subsection, 09 (1) a carried-forward annual loss is the amount of a producer's or 10 explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a 11 previous calendar year that was not deductible in calculating production tax values for 12 that calendar year under AS 43.55.160; 13 (2) for lease expenditures incurred on or after January 1, 2017, any 14 reduction under AS 43.55.160(f) or (g) is added back to the calculation of production 15 tax values for that calendar year under AS 43.55.160 for the determination of a 16 carried-forward annual loss. 17 * Sec. 6. AS 43.55.024(j), as amended by sec. 21, ch. 4, 4SSLA 2016, is amended to read: 18 (j) A producer may apply against the producer's tax liability for the calendar 19 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 20 each barrel of oil taxable under AS 43.55.011(e) that does not receive a reduction in 21 the gross value at the point of production under AS 43.55.160(f) or (g) and that is 22 produced during a calendar year after December 31, 2013, from leases or properties 23 north of 68 degrees North latitude. A tax credit under this subsection may not reduce a 24 producer's tax liability for a calendar year under AS 43.55.011(e) below the amount 25 calculated under AS 43.55.011(f). The total amount of a tax credit under this  26 subsection that may be applied against the producer's tax liability under  27 AS 43.55.011(e) for a calendar year may not exceed the sum of the amount of the  28 tax credits or fraction of tax credits under this subsection that are allowed to be  29 applied in calculating installment payments of estimated tax under  30 AS 43.55.020(a) for each month in a calendar year. The amount of the tax credit for 31 a barrel of taxable oil subject to this subsection produced during a month of the 01 calendar year is 02 (1) $8 for each barrel of taxable oil if the average gross value at the 03 point of production for the month is less than $80 a barrel; 04 (2) $7 for each barrel of taxable oil if the average gross value at the 05 point of production for the month is greater than or equal to $80 a barrel, but less than 06 $90 a barrel; 07 (3) $6 for each barrel of taxable oil if the average gross value at the 08 point of production for the month is greater than or equal to $90 a barrel, but less than 09 $100 a barrel; 10 (4) $5 for each barrel of taxable oil if the average gross value at the 11 point of production for the month is greater than or equal to $100 a barrel, but less 12 than $110 a barrel; 13 (5) $4 for each barrel of taxable oil if the average gross value at the 14 point of production for the month is greater than or equal to $110 a barrel, but less 15 than $120 a barrel; 16 (6) $3 for each barrel of taxable oil if the average gross value at the 17 point of production for the month is greater than or equal to $120 a barrel, but less 18 than $130 a barrel; 19 (7) $2 for each barrel of taxable oil if the average gross value at the 20 point of production for the month is greater than or equal to $130 a barrel, but less 21 than $140 a barrel; 22 (8) $1 for each barrel of taxable oil if the average gross value at the 23 point of production for the month is greater than or equal to $140 a barrel, but less 24 than $150 a barrel; 25 (9) zero if the average gross value at the point of production for the 26 month is greater than or equal to $150 a barrel. 27 * Sec. 7. AS 43.55.025(f) is amended to read: 28 (f) For a production tax credit under this section, 29 (1) an explorer shall, in a form prescribed by the department and, 30 except for a credit under (k) of this section, within six months of the completion of the 31 exploration activity, claim the credit and submit information sufficient to demonstrate 01 to the department's satisfaction that the claimed exploration expenditures qualify under 02 this section; in addition, the explorer shall submit information necessary for the 03 commissioner of natural resources to evaluate the validity of the explorer's compliance 04 with the requirements of this section; 05 (2) an explorer shall agree, in writing, 06 (A) to notify the Department of Natural Resources, within 30 07 days after completion of seismic or geophysical data processing, completion of 08 well drilling, or filing of a claim for credit, whichever is the latest, for which 09 exploration costs are claimed, of the date of completion and submit a report to 10 that department describing the processing sequence and providing a list of data 11 sets available; 12 (B) to provide to the Department of Natural Resources, within 13 30 days after the date of a request, unless a longer period is provided by the 14 Department of Natural Resources, specific data sets, ancillary data, and reports 15 identified in (A) of this paragraph; in this subparagraph, 16 (i) a seismic or geophysical data set includes the data 17 for an entire seismic survey, irrespective of whether the survey area 18 covers nonstate land in addition to state land or land in a unit in 19 addition to land outside a unit; 20 (ii) well data include all analyses conducted on physical 21 material, and well logs collected from the well, results, and copies of 22 data collected and data analyses for the well, including well logs; 23 sample analyses; testing geophysical and velocity data including 24 seismic profiles and check shot surveys; testing data and analyses; age 25 data; geochemical analyses; and tangible material; 26 (C) that, notwithstanding any provision of AS 38, information 27 provided under this paragraph will be held confidential by the Department of 28 Natural Resources, 29 (i) in the case of well data, until the expiration of the 30 24-month period of confidentiality described in AS 31.05.035(c), at 31 which time the Department of Natural Resources will release the 01 information after 30 days' public notice unless, in the discretion of the 02 commissioner of natural resources, it is necessary to protect 03 information relating to the valuation of [UNLEASED] acreage in the 04 same vicinity, or unless the well is on private land and the owner, 05 including the lessor but not the lessee, of the oil and gas resources has 06 not given permission to release the well data; 07 (ii) in the case of seismic or other geophysical data, 08 other than seismic data acquired by seismic exploration subject to (k) of 09 this section, for the earlier of 10 years following the completion date, 10 or if a lease for which the seismic or other geophysical data was  11 acquired is terminated or relinquished until the date of the  12 termination or relinquishment, at which time the Department of 13 Natural Resources will release the information after 30 days' public 14 notice, unless, in the discretion of the commissioner of natural  15 resources, it is necessary to protect information relating to the  16 valuation of acreage in the same vicinity, or unless the [EXCEPT 17 AS TO] seismic or other geophysical data was acquired from private 18 land and [, UNLESS] the owner, including a lessor but not a lessee, of 19 the oil and gas resources in the private land has not given [GIVES] 20 permission to release the seismic or other geophysical data associated 21 with the private land; 22 (iii) in the case of seismic data obtained by seismic 23 exploration subject to (k) of this section, only until the expiration of 30 24 days' public notice issued on or after the date the production tax credit 25 certificate is issued under (5) of this subsection; 26 (3) if more than one explorer holds an interest in a well or seismic 27 exploration, each explorer may claim an amount of credit that is proportional to the 28 explorer's cost incurred; 29 (4) the department may exercise the full extent of its powers as though 30 the explorer were a taxpayer under this title, in order to verify that the claimed 31 expenditures are qualified exploration expenditures under this section; and 01 (5) if the department is satisfied that the explorer's claimed 02 expenditures are qualified under this section and that all data required to be submitted 03 under this section have been submitted, the department shall issue to the explorer a 04 production tax credit certificate for the amount of credit to be allowed against 05 production taxes levied by AS 43.55.011(e); notwithstanding any contrary provision 06 of AS 38, AS 40.25.100, or AS 43.05.230, the following information is not 07 confidential: 08 (A) the explorer's name; 09 (B) the date of the application; 10 (C) the location of the well or seismic exploration; 11 (D) the date of the department's issuance of the certificate; and 12 (E) the date on which the information required to be submitted 13 under this section will be released. 14 * Sec. 8. AS 43.55.028(e), as amended by sec. 23, ch. 4, 4SSLA 2016, is amended to read:  15 (e) The department, on the written application of a person to whom a 16 transferable tax credit certificate has been issued under AS 43.55.023(d) or former 17 AS 43.55.023(m) or to whom a production tax credit certificate has been issued under 18 AS 43.55.025(f), may use available money in the oil and gas tax credit fund to 19 purchase, in whole or in part, the certificate. The department may not purchase a total 20 of more than $70,000,000 in tax credit certificates from a person in a calendar year. 21 Before purchasing a certificate or part of a certificate, the department shall find that 22 (1) the calendar year of the purchase is not earlier than the first 23 calendar year for which the credit shown on the certificate would otherwise be allowed 24 to be applied against a tax; 25 (2) the application is not the result of the division of a single entity into 26 multiple entities that would reasonably be expected to apply as a single entity if the 27 $70,000,000 limitation in this subsection did not exist; 28 (3) the applicant's total tax liability under AS 43.55.011(e), after 29 application of all available tax credits, for the calendar year in which the application is 30 made is zero; 31 (4) the applicant's average daily production of oil and gas taxable 01 under AS 43.55.011(e) during the calendar year preceding the calendar year in which 02 the application is made was not more than 15,000 [50,000] BTU equivalent barrels; 03 and 04 (5) the purchase is consistent with this section and regulations adopted 05 under this section. 06 * Sec. 9. AS 43.55.150 is amended by adding a new subsection to read: 07 (d) For purposes of calculating a gross value at the point of production under 08 this chapter, the gross value at the point of production may not be less than zero. 09 * Sec. 10. AS 43.55.895(b), as amended by sec. 30, ch. 4, 4SSLA 2016, is repealed and 10 reenacted to read: 11 (b) A municipal entity subject to taxation because of this section is eligible for 12 tax credits only to the extent allowed under regulations adopted by the department that 13 limit the amount of an otherwise available tax credit to a fraction that is equal to the 14 fraction of the municipal entity's production that it sells to another party. A municipal 15 entity subject to taxation because of this section shall calculate annual production tax 16 values under AS 43.55.160(a)(1) and (h) using a method prescribed by regulations 17 adopted by the department that limits the amount of deductible adjusted lease 18 expenditures under AS 43.55.165 and 43.55.170 to a fraction that is equal to the 19 fraction of the municipal entity's production that it sells to another party. For purposes 20 of this subsection, a municipal entity's production does not include oil or gas the 21 ownership or right to which constitutes the federal or state government's or 22 landowner's royalty interest. 23 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY. AS 43.55.025(f), as amended by sec. 7 of this Act, applies to tax 26 credit certificates issued on or after the effective date of sec. 7 of this Act for which the 27 producer or explorer is required to agree to the provisions of AS 43.55.025 and submit 28 information to the Department of Natural Resources under AS 43.55.025(f). 29 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 APPLICABILITY. (a) Only for the purposes of the time calculation in 01 AS 43.05.225(1), as amended by sec. 1 of this Act, a tax delinquent before the effective date 02 of sec. 1 of this Act that remains delinquent on the effective date of sec 1 of this Act is 03 considered to be first delinquent on the effective date of sec. 1 of this Act. 04 (b) AS 43.55.028(e), as amended by sec. 8 of this Act, applies to a purchase applied 05 for on or after the effective date of sec. 8 of this Act. 06 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 TRANSITION: REGULATIONS. The Department of Revenue and the Department of 09 Natural Resources may adopt regulations necessary to implement the changes made by this 10 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 11 before the effective date of the law implemented by the regulation. The Department of 12 Revenue shall adopt regulations governing the use of tax credits under AS 43.55 for a 13 calendar year for which the applicable tax credit provisions of AS 43.55 differ as between 14 parts of the year as a result of this Act. 15 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding any 18 contrary provision of AS 44.62.240, 19 (1) if the Department of Revenue expressly designates in a regulation that the 20 regulation applies retroactively, a regulation adopted by the Department of Revenue to 21 implement, interpret, make specific, or otherwise carry out this Act may apply retroactively to 22 the effective date of the law implemented by the regulation; 23 (2) if the Department of Natural Resources expressly designates in the 24 regulation that the regulation applies retroactively, a regulation adopted by the Department of 25 Natural Resources to implement, interpret, make specific, or otherwise carry out the statutory 26 amendments in this Act affecting the administration of oil and gas leases issued under 27 AS 38.05.180(f)(3)(B), (D), or (E), to the extent the regulation relates to the treatment of oil 28 and gas production taxes in determining net profits under those leases, may apply 29 retroactively to the effective date of the law implemented by the regulation. 30 * Sec. 15. Sections 7, 11, 13, and 14 of this Act take effect immediately under 31 AS 01.10.070(c). 01 * Sec. 16. Section 1 of this Act takes effect on the effective date of sec. 8, ch. 4, 4SSLA 02 2016. 03 * Sec. 17. Section 3 of this Act takes effect on the effective date of sec. 16, ch. 4, 4SSLA 04 2016. 05 * Sec. 18. Section 5 of this Act takes effect on the effective date of sec. 18, ch. 4, 4SSLA 06 2016. 07 * Sec. 19. Section 6 of this Act takes effect on the effective date of sec. 21, ch. 4, 4SSLA 08 2016. 09 * Sec. 20. Section 8 of this Act takes effect on the effective date of sec. 23, ch. 4, 4SSLA 10 2016. 11 * Sec. 21. Section 10 of this Act takes effect on the effective date of sec. 30, ch. 4, 4SSLA 12 2016. 13 * Sec. 22. Except as provided in secs. 15 - 21 of this Act, this Act takes effect January 1, 14 2017.