This bill amends Alaska's oil and gas production tax regulations, specifically focusing on tax credits available to producers. It introduces new language that allows producers to apply for a tax credit of $5 for each barrel of oil produced after December 31, 2013, that has a reduction in gross value at the point of production. Additionally, it establishes a tiered tax credit system for barrels that do not receive a reduction, with credits ranging from $1 to $5 based on the average gross value of oil produced during the month. The bill also includes a new restriction that limits the total credits a producer can apply against their tax liability to their qualified capital expenditures for each lease or property.

Furthermore, the bill outlines that these amendments will apply to oil produced on or after January 1, 2025, and establishes a transition period where tax adjustments must be paid by January 1, 2026, with waived interest and penalties until that date. It also allows for the retroactive application of regulations adopted by the Department of Revenue, provided they are explicitly designated as such. The act is set to take effect immediately upon passage.

Statutes affected:
SB0112A, AM SB 112, introduced 02/26/2025: 43.55.024, 43.55.011, 43.55.160, 43.55.023, 43.55.020, 43.05.225, 43.05.220, 43.05.245, 43.05.290, 44.62.240