Legislature(2003 - 2004)
05/08/2003 04:03 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HB 61-OIL & GAS TAX CREDIT FOR EXPLORATION/DEV
CHAIR OGAN informed committee members that the bill contains a
10-year sunset provision. He wrestled with the idea of
shortening that timeframe but instead decided to propose an
amendment [Amendment 1] that treats the problem in a different
manner.
Amendment 1 reads as follows.
23-LS0270\S.1
Chenoweth
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR OGAN
TO: CSHB 61(FIN)
Page 4, following line 30:
Insert a new bill section to read:
"* Sec. 4. The uncodified law of the State of Alaska is
amended by adding a new section to read:
REPORT ON EFFECT OF GAS EXPLORATION AND DEVELOPMENT TAX
CREDIT. Not later than November 30, 2008, the Department of
Revenue shall prepare and publish a report on the effect of the
gas exploration and development tax credit authorized by
AS 43.20.043, added by sec. 1 of this Act. The department shall
advise the legislature of the availability of the report and,
within the first 10 days of the First Regular Session of the
Twenty-Sixth Alaska State Legislature, transmit copies of the
report to the chairs or co-chairs of the House and Senate
Resources Committees and the chairs or co-chairs of the House
and Senate Special Committees on Oil and Gas, if established.
The report must address
(1) the number of successful gas discoveries for which
a tax credit is provided under AS 43.20.043;
(2) the volume or amount of new gas reserves brought
into production for which a tax credit is provided under
AS 43.20.043;
(3) the total credits allowed under AS 43.20.043 that
are applied to the tax liability through the date of preparation
of the report;
(4) the total credits applied for under AS 43.20.043
that are not yet approved as of the date of preparation of the
report;
(5) royalties obtained and oil and gas property
production taxes paid from new gas production and anticipated
from gas production for production for which credits are allowed
under AS 43.20.043; and
(6) any other information that, in the judgment of the
commissioner of revenue, would evaluate the effectiveness of the
gas exploration and development tax credit authorized under
AS 43.20.043."
Renumber the following bill sections accordingly.
Page 5, line 1:
Delete "sec. 4"
Insert "sec. 5"
SENATOR WAGONER objected to the adoption of Amendment 1 for the
purpose of discussion.
CHAIR OGAN explained that Amendment 1 instructs the Department
of Revenue (DOR) to provide a report in five years. The report
is to contain information specific to items 1 through 6 listed
in the amendment. That report will let the legislature know how
this program is working out in 5 years from now. He believes
that is a better approach than sunsetting the program, which is
cause for uncertainty. The report will be delivered to the House
and Senate Resources Committee co-chairs and House and Senate
Special Committees on Oil and Gas, if established.
SENATOR WAGONER withdrew his objection to the adoption of
Amendment 1, therefore it was adopted.
CHAIR OGAN announced that Mr. Logsdon was available to answer
questions. With no questions, he took public testimony.
MR. LARRY HOULE, Alaska Support Industry Alliance, stated strong
support for this legislation. It is a successful efforts bill,
meaning no credits are given for dry holes. The Alliance sees
this as the proper role of government and applauds the sponsor
for introducing this legislation.
[SENATOR LINCOLN arrived.]
SENATOR WAGONER moved SCS CSHB 61(RES) from committee with
individual recommendations and its zero fiscal note. There being
no objection, the motion carried.
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