This bill establishes a new income tax for certain entities involved in the production or transportation of oil and gas in Alaska. Specifically, it imposes a tax of 9.4 percent on taxable income exceeding $5,000,000 for "qualified entities," which include sole proprietorships, partnerships, limited liability companies, and certain corporations. The bill outlines how taxable income is calculated, stipulating that it should be determined as if the entity were a C corporation, and it restricts the application of federal tax credits or deductions against state tax liability. Additionally, the bill provides provisions for aggregating taxable income among related entities and specifies that the tax does not apply to corporations already subject to existing taxes under AS 43.20.011.

The bill also includes several amendments to existing law, such as changing references from "corporation" to "taxpayer" in various sections, allowing deductions for payments made to shareholders or partners of qualified entities, and establishing a transition period for tax payments due before January 1, 2026. Furthermore, it allows for retroactive application of regulations and the Act itself to January 1, 2025. The Act is set to take effect immediately upon passage.

Statutes affected:
SB0092A, AM SB 92, introduced 02/10/2025: 43.20.011, U.S.C, 43.20.030, 43.20.031, 43.20.145, 43.20.142, 43.20.143, 43.20.019, 43.05.225, 43.05.220, 43.05.245, 43.05.290, 44.62.240
SB0092B, AM CSSB 92(RES), introduced 04/04/2025: 43.20.144, U.S.C, 43.20.021, 43.20.036, 43.20.011, 43.20.030, 43.20.031, 43.20.019, 43.05.225, 43.05.220, 43.05.245, 43.05.290, 44.62.240
SB0092C, AM CSSB 92(FIN), introduced 05/09/2025: 43.20.144, U.S.C, 43.20.021, 43.20.036, 43.20.011, 43.20.030, 43.20.031, 43.20.019, 43.05.225, 43.05.220, 43.05.245, 43.05.290, 44.62.240