00                             HOUSE BILL NO. 4002                                                                         
01 "An Act relating to nonrefundable tax credits against the oil and gas production tax;                                   
02 and providing for an effective date."                                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 43.55.024(j) is amended to read:                                                                   
05 (j)  A producer may apply against the producer's tax liability for the calendar                                         
06 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for                                  
07 each barrel of oil taxable under AS 43.55.011(e) that does not receive a reduction in                                   
08 the gross value at the point of production under AS 43.55.160(f) or (g) and that is                                     
09 produced during a calendar year after December 31, 2013, from leases or properties                                      
10 north of 68 degrees North latitude. A tax credit under this subsection may not reduce a                                 
11 producer's tax liability for a calendar year under AS 43.55.011(e) below the amount                                     
12 calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable                                  
13       oil subject to this subsection produced during a month of the calendar year is                                    
14                 (1)  $4 [$8] for each barrel of taxable oil if the average gross value at                           
01       the point of production for the month is less than $80 a barrel;                                                  
02                 (2)  $3 [$7] for each barrel of taxable oil if the average gross value at                           
03       the point of production for the month is greater than or equal to $80 a barrel, but less                          
04       than $90 a barrel;                                                                                                
05                 (3)  $2 [$6] for each barrel of taxable oil if the average gross value at                           
06       the point of production for the month is greater than or equal to $90 a barrel, but less                          
07       than $100 a barrel;                                                                                               
08                 (4)  $1 [$5] for each barrel of taxable oil if the average gross value at                           
09       the point of production for the month is greater than or equal to $100 a barrel, but less                         
10       than $110 a barrel;                                                                                               
11 (5)  zero [$4 FOR EACH BARREL OF TAXABLE OIL] if the                                                                
12 average gross value at the point of production for the month is greater than or equal to                                
13       $110 a barrel [, BUT LESS THAN $120 A BARREL;                                                                     
14 (6)  $3 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE                                                                   
15 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS                                                                 
16 GREATER THAN OR EQUAL TO $120 A BARREL, BUT LESS THAN $130 A                                                            
17       BARREL;                                                                                                           
18 (7)  $2 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE                                                                   
19 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS                                                                 
20 GREATER THAN OR EQUAL TO $130 A BARREL, BUT LESS THAN $140 A                                                            
21       BARREL;                                                                                                           
22 (8)  $1 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE                                                                   
23 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS                                                                 
24 GREATER THAN OR EQUAL TO $140 A BARREL, BUT LESS THAN $150 A                                                            
25       BARREL;                                                                                                           
26 (9)  ZERO IF THE AVERAGE GROSS VALUE AT THE POINT OF                                                                    
27 PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $150 A                                                             
28       BARREL].                                                                                                          
29    * Sec. 2. This Act takes effect January 1, 2022.