HB 100: "An Act establishing a credit against the net income tax for an in-state processing facility that manufactures urea or ammonia; and providing for an effective date."
00 HOUSE BILL NO. 100 01 "An Act establishing a credit against the net income tax for an in-state processing 02 facility that manufactures urea or ammonia; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.20 is amended by adding a new section to read: 05 Sec. 43.20.052. Credit for the in-state manufacture of urea or ammonia. 06 (a) A taxpayer that owns an in-state processing facility whose primary function is the 07 manufacturing and sale of urea or ammonia to third parties in arm's length transactions 08 is entitled to receive a credit under this section against the tax due under this chapter. 09 The credit under this section is equal to the amount of royalty paid under 10 AS 38.05.135 on natural gas from a state lease that is delivered to the taxpayer entitled 11 to a credit under this section. 12 (b) A tax credit or portion of a tax credit under this section may not be used to 13 reduce the taxpayer's tax liability under this chapter below zero. 14 * Sec. 2. AS 43.20.052 is repealed.
01 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. AS 43.20.052, added by sec. 1 of this Act, applies to the amount of 04 royalty paid under AS 38.05.135 on natural gas from a state lease that is delivered to a facility 05 on or after July 1, 2017, and before January 1, 2027. 06 * Sec. 4. Sections 1 and 3 of this Act take effect July 1, 2017. 07 * Sec. 5. Section 2 of this Act takes effect January 1, 2027.