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 treated as if the entity were a C corporation under the Internal Revenue Code. Additionally, it specifies that certain credits or deductions related to federal taxes cannot be applied against this state tax, with exceptions for C corporations.

The bill also includes provisions for the filing of tax returns, the determination of income for unitary groups, and allows for deductions for payments made to shareholders or partners of qualified entities under specific conditions. It establishes that the new tax applies to tax years beginning on or after January 1, 2025, and includes a transition period for tax payments due before January 1, 2026, during which interest and penalties will be waived. Furthermore, the bill allows for retroactive application of regulations and the Act itself to January 1, 2025, ensuring that entities are subject to the new tax framework from that date.

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