SB 112: "An Act relating to credits against the oil and gas production tax; and providing for an effective date."
00 SENATE BILL NO. 112 01 "An Act relating to credits against the oil and gas production tax; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.55.024(i) is amended to read: 05 (i) Subject to the restriction in (k) of this section, a [A] producer may apply 06 against the producer's tax liability for the calendar year under AS 43.55.011(e) a tax 07 credit of $5 for each barrel of oil taxable under AS 43.55.011(e) that receives a 08 reduction in the gross value at the point of production under AS 43.55.160(f) or (g) 09 and that is produced during a calendar year after December 31, 2013. A tax credit 10 authorized by this subsection may not reduce a producer's tax liability for a calendar 11 year under AS 43.55.011(e) below zero. 12 * Sec. 2. AS 43.55.024(j) is amended to read: 13 (j) Subject to the restriction in (k) of this section, a [A] producer may apply 14 against the producer's tax liability for the calendar year under AS 43.55.011(e) a tax
01 credit in the amount specified in this subsection for each barrel of oil taxable under 02 AS 43.55.011(e) that does not receive a reduction in the gross value at the point of 03 production under AS 43.55.160(f) or (g) and that is produced during a calendar year 04 after December 31, 2013, from leases or properties north of 68 degrees North latitude. 05 A tax credit under this subsection may not reduce a producer's tax liability for a 06 calendar year under AS 43.55.011(e) below the amount calculated under 07 AS 43.55.011(f). The amount of the tax credit for a barrel of taxable oil subject to this 08 subsection produced during a month of the calendar year is 09 (1) $5 [$8] for each barrel of taxable oil if the average gross value at 10 the point of production for the month is less than $80 a barrel; 11 (2) $4 [$7] for each barrel of taxable oil if the average gross value at 12 the point of production for the month is greater than or equal to $80 a barrel, but less 13 than $90 a barrel; 14 (3) $3 [$6] for each barrel of taxable oil if the average gross value at 15 the point of production for the month is greater than or equal to $90 a barrel, but less 16 than $100 a barrel; 17 (4) $2 [$5] for each barrel of taxable oil if the average gross value at 18 the point of production for the month is greater than or equal to $100 a barrel, but less 19 than $110 a barrel; 20 (5) $1 [$4] for each barrel of taxable oil if the average gross value at 21 the point of production for the month is greater than or equal to $110 a barrel [, BUT 22 LESS THAN $120 A BARREL; 23 (6) $3 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 24 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 25 GREATER THAN OR EQUAL TO $120 A BARREL, BUT LESS THAN $130 A 26 BARREL; 27 (7) $2 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE 28 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 29 GREATER THAN OR EQUAL TO $130 A BARREL, BUT LESS THAN $140 A 30 BARREL; 31 (8) $1 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE
01 GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS 02 GREATER THAN OR EQUAL TO $140 A BARREL, BUT LESS THAN $150 A 03 BARREL; 04 (9) ZERO IF THE AVERAGE GROSS VALUE AT THE POINT OF 05 PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $150 A 06 BARREL]. 07 * Sec. 3. AS 43.55.024 is amended by adding a new subsection to read: 08 (k) In a calendar year, for each lease or property, a producer may not apply 09 against the producer's tax liability under AS 43.55.011(e) credits earned under (i) or (j) 10 of this section in an amount that exceeds the producer's qualified capital expenditures 11 for the lease or property. A producer may not carry forward an unused credit under 12 this subsection. In this subsection, "qualified capital expenditure" has the meaning 13 given in AS 43.55.023(o). 14 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 APPLICABILITY. AS 43.55.024(i) and (j), as amended by secs. 1 and 2 of this Act, 17 and AS 43.55.024(k), added by sec. 3 of this Act, apply to credits resulting from oil produced 18 on or after January 1, 2025. 19 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 TRANSITION: PAYMENT OF TAX. Notwithstanding AS 43.55.020, a person 22 subject to an adjustment to tax liability as a result of AS 43.55.024(i) and (j), as amended by 23 secs. 1 and 2 of this Act, and AS 43.55.024(k), added by sec. 3 of this Act, shall pay the 24 balance of the tax due before January 1, 2026, by January 1, 2026. Until January 1, 2026, the 25 Department of Revenue shall waive interest that would otherwise accrue under AS 43.05.225 26 and civil and criminal penalties accruing under AS 43.05.220, 43.05.245, and 43.05.290 that 27 are a result of the retroactivity of this Act. 28 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provision of 31 AS 44.62.240, if the Department of Revenue expressly designates in a regulation that the
01 regulation applies retroactively to a specific date, a regulation adopted by the department to 02 implement, interpret, make specific, or otherwise carry out this Act applies retroactively to 03 that date. 04 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 RETROACTIVITY. This Act is retroactive to January 1, 2025. 07 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).