HB 351: "An Act relating to nontransferable credits that may be applied against a liability for an oil and gas production tax."
00 HOUSE BILL NO. 351 01 "An Act relating to nontransferable credits that may be applied against a liability for an 02 oil and gas production tax." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.55.024(g) is amended to read: 05 (g) A tax credit authorized by (c) or (i) of this section may not be applied to 06 reduce a producer's tax liability for any calendar year under AS 43.55.011(e) below 07 zero. 08 * Sec. 2. AS 43.55.024 is amended by adding a new subsection to read: 09 (i) For production from a qualifying lease or property for which a producer's 10 tax liability determined under AS 43.55.011(e) is greater than zero after the 11 application of a credit under (a) or (c) of this section and before application of any 12 other credits in this chapter, a producer that qualifies under (e) of this section may take 13 the tax credit authorized by this subsection against a tax liability under 14 AS 43.55.011(e). The credit may be taken for the calendar year in which the
01 qualifying lease or property first produced oil and gas in paying quantities and for the 02 nine calendar years immediately following. Against a liability under 03 AS 43.55.011(e)(1), the amount of credit is equal to 25 percent of the annual 04 production tax value of all oil and gas produced by the producer determined under 05 AS 43.55.160(a)(1) for all leases and properties, multiplied by the new production 06 credit factor. Against a liability under AS 43.55.011(e)(2), the amount of credit is 07 equal to the amount of tax due under AS 43.55.011(e)(2) multiplied by the new 08 production credit factor. In this subsection, 09 (1) the amount of oil and gas produced is measured in BTU equivalent 10 barrels; and 11 (2) "new production credit factor" means a fraction, the numerator of 12 which is the total amount of oil and gas for the calendar year produced by the producer 13 from all qualifying leases or properties, and the denominator of which is the total 14 amount of all oil and gas produced by the producer for the calendar year from all 15 leases or properties; 16 (3) "qualifying lease or property" means a lease or property that did 17 not have oil and gas production in paying quantities before 2012.