This bill establishes a new income tax for certain entities involved in the production or transportation of oil and gas in Alaska. Specifically, it introduces 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 certain sections, and it allows for deductions from income for payments made to shareholders or partners of qualified entities under specific conditions. The act is set to apply to tax years beginning on or after January 1, 2025, and includes provisions for the retroactive application of regulations and the act itself to that date. Furthermore, it establishes a transition period for tax payments due before January 1, 2026, during which interest and penalties will be waived. The act is effective 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