00                      CS FOR HOUSE BILL NO. 387(RES)                                                                    
01 "An Act relating to a tax credit for certain oil and gas equipment in the Cook Inlet                                    
02 sedimentary basin; repealing certain credits against the oil and gas production tax; and                                
03 providing for an effective date."                                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 43.98 is amended by adding a new section to read:                                                
06                 Article 5. Oil and Gas Tax Credit Certificates.                                                       
07 Sec. 43.98.080. Tax credit for jack-up rigs. (a) The department shall provide                                         
08 a tax credit certificate to a person who, after the effective date of this Act and before                               
09 July 1, 2030, installs a jack-up rig in the Cook Inlet sedimentary basin. To receive a                                  
10       credit under this section the jack-up rig must be used, or contracted to be used, in the                          
11       Cook Inlet sedimentary basin for at least three years. The tax credit is equal to the                             
12       lesser of                                                                                                         
13                 (1)  the total cost of purchasing or leasing the jack-up rig and                                        
14       transporting the jack-up rig to the Cook Inlet sedimentary basin; or                                              

01                 (2)  $75,000,000.                                                                                       
02            (b)  A person who receives a tax credit certificate under (a) of this section may                            
03       use the credit, or a portion of the credit, to offset taxes imposed under this title. Any                         
04       unused portion of the credit may be carried forward to a subsequent tax year.                                     
05            (c)  A tax credit certificate issued under (a) of this section may not                                       
06                 (1)  be sold, assigned, exchanged, conveyed, or otherwise transferred,                                  
07       in whole or in part;                                                                                              
08                 (2)  be applied to reduce a person's tax liability under this title to below                            
09       zero; or                                                                                                          
10                 (3)  be the basis for a credit under another provision of this title.                                   
11            (d)  In this section, "jack-up rig" means a mobile drilling platform with                                    
12       extendible legs for support on the ocean floor.                                                                   
13    * Sec. 2. AS 43.55.025(a)(5) and 43.55.025(l) are repealed.                                                        
14    * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).