This bill amends the oil and gas production tax credits in Alaska, specifically addressing the tax credits available to producers for oil produced after December 31, 2013. It introduces new language that allows producers to apply for a tax credit of $5 for each barrel of oil that receives 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 the amount of their qualified capital expenditures for each lease or property.

Furthermore, the bill outlines the applicability of these amendments 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 related to the implementation of this Act, effective from January 1, 2025. The bill is designed to provide clarity and structure to the tax credit system for oil producers in Alaska while ensuring compliance with new restrictions and timelines.

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