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30th Legislature(2017-2018)

Bill Text 30th Legislature


00 Enrolled HB 111                                                                                                         
01 Relating to credits against the oil and gas production tax; relating to the applicability of                            
02 certain credits earned under the oil and gas production tax to the tax on corporations; relating                        
03 to tax credit certificates against the oil and gas production tax and the issuance and                                  
04 assignment of those certificates; relating to interest applicable to delinquent taxes; relating to                      
05 lease expenditures; relating to the oil and gas tax credit fund; relating to a legislative working                      
06 group; and providing for an effective date.                                                                             
07                           _______________                                                                               
08    * Section 1. AS 31.05.030(n) is amended to read:                                                                     
09            (n)  Upon request of the commissioner of revenue, the commission shall                                       
10       determine the commencement of regular production from a lease or property for                                     
11       purposes of AS 43.55.160(f) and (g) and 43.55.165(o) and (p).                                                   
12    * Sec. 2. AS 40.25.100(a) is amended to read:                                                                        
13            (a)  Information in the possession of the Department of Revenue that discloses                               
01 the particulars of the business or affairs of a taxpayer or other person, including                                     
02 information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement                                    
03 under AS 38.05.020(b)(12), is not a matter of public record, except as provided in                                      
04 AS 43.05.230(i) - (k) [AS 43.05.230(i) - (l)] or for purposes of investigation and law                                
05 enforcement. The information shall be kept confidential except when its production is                                   
06 required in an official investigation, administrative adjudication under AS 43.05.405 -                                 
07 43.05.499, or court proceeding. These restrictions do not prohibit the publication of                                   
08 statistics presented in a manner that prevents the identification of particular reports                                 
09 and items, prohibit the publication of tax lists showing the names of taxpayers who are                                 
10 delinquent and relevant information that may assist in the collection of delinquent                                     
11 taxes, or prohibit the publication of records, proceedings, and decisions under                                         
12       AS 43.05.405 - 43.05.499.                                                                                         
13    * Sec. 3. AS 43.05.225 is amended to read:                                                                           
14            Sec. 43.05.225. Interest. Unless otherwise provided,                                                         
15                 (1)  a delinquent tax under this title                                                                
16 (A)  [UNDER THIS TITLE,] before January 1, 2014, bears                                                                  
17 interest in each calendar quarter at the rate of five percentage points above the                                       
18 annual rate charged member banks for advances by the 12th Federal Reserve                                               
19 District as of the first day of that calendar quarter, or at the annual rate of 11                                      
20 percent, whichever is greater, compounded quarterly as of the last day of that                                          
21            quarter;                                                                                                     
22 (B)  [UNDER THIS TITLE,] on and after January 1, 2014, and                                                            
23 before January 1, 2018 [EXCEPT AS PROVIDED IN (C) OF THIS                                                             
24 PARAGRAPH], bears interest in each calendar quarter at the rate of three                                                
25 percentage points above the annual rate charged member banks for advances                                               
26            by the 12th Federal Reserve District as of the first day of that calendar quarter;                           
27                      (C)  [UNDER AS 43.55,] on and after January 1, 2018 [2017,                                       
28 (i)  FOR THE FIRST THREE YEARS AFTER A TAX                                                                              
29 BECOMES DELINQUENT], bears interest in each calendar quarter at                                                         
30 the rate of 5.25 [SEVEN] percentage points above the annual rate                                                      
31 charged member banks for advances by the 12th federal reserve district                                                  
01                 as of the first day of that calendar quarter, compounded quarterly as of                                
02                 the last day of that quarter; [AND                                                                      
03                           (ii)  AFTER THE FIRST THREE YEARS AFTER A                                                     
04                 TAX BECOMES DELINQUENT, DOES NOT BEAR INTEREST;]                                                        
05                 (2)  the interest rate is 12 percent a year for                                                         
06                      (A)  delinquent fees payable under AS 05.15.095(c); and                                            
07                      (B)  unclaimed property that is not timely paid or delivered, as                                   
08            allowed by AS 34.45.470(a).                                                                                  
09    * Sec. 4. AS 43.20.044(a) is amended to read:                                                                        
10            (a)  A taxpayer may apply as a credit against the tax levied under this chapter                              
11                 (1)  the exploration incentive credit authorized by AS 27.30;                                       
12 (2)  an alternative tax credit for oil and gas exploration earned by                                                  
13 the taxpayer under AS 43.55.025 for exploration expenditures incurred for work                                        
14       performed on or after July 1, 2016.                                                                             
15    * Sec. 5. AS 43.20.047(h) is amended to read:                                                                        
16 (h)  If the liquefied natural gas storage facility for which a credit was received                                      
17 under this section ceases commercial operation during the nine calendar years                                           
18 immediately following the calendar year in which the liquefied natural gas storage                                      
19 facility commences commercial operation, the tax liability under this chapter of the                                    
20 person who claimed the credit shall be increased, and a person not subject to the tax                                   
21 under this chapter that received a payment under (d) or former [AND] (e) of this                                      
22 section shall be liable to the state in the amount determined in this subsection. The                                   
23       amount of the increase in tax liability or liability to the state                                                 
24 (1)  for a person subject to the tax under this chapter, shall be                                                       
25 determined and assessed for the taxable year in which the liquefied natural gas storage                                 
26 facility ceases commercial operation, regardless of whether the liquefied natural gas                                   
27       storage facility subsequently resumes commercial operation;                                                       
28 (2)  for a person not subject to the tax due under this chapter, shall be                                               
29 determined and assessed as of December 31 of the calendar year in which the liquefied                                   
30 natural gas storage facility ceases commercial operation, regardless of whether the                                     
31       liquefied natural gas storage facility subsequently resumes commercial operation; and                             
01 (3)  is equal to the total amount of the credit taken or received as a                                                  
02 payment under (d) of this section, as applicable, multiplied by a fraction, the                                         
03 numerator of which is the difference between 10 and the number of calendar years for                                    
04 which the liquefied natural gas storage facility was eligible for a tax credit under this                               
05       section and the denominator of which is 10.                                                                       
06    * Sec. 6. AS 43.55.023(c) is amended to read:                                                                        
07            (c)  A credit or portion of a credit under this section                                                      
08                 (1)  may not be used to reduce a person's tax liability under                                         
09       AS 43.55.011(e) for any calendar year below zero;                                                               
10 (2)  may, if [, AND ANY UNUSED CREDIT OR PORTION OF A                                                                 
11       CREDIT] not used under this subsection, [MAY] be applied in a later calendar year;                            
12 (3)  may, regardless of when the credit was earned, be used to                                                        
13       satisfy a tax, interest, penalty, fee, or other charge that                                                     
14 (A)  is related to the tax due under this chapter for a prior                                                         
15 year, except for a surcharge under AS 43.55.201 - 43.55.299 or 43.55.300                                              
16            or the tax levied by AS 43.55.011(i) or 43.55.014; and                                                     
17 (B)  has not, for the purpose of art. IX, sec. 17(a),                                                                 
18 Constitution of the State of Alaska, been subject to an administrative                                                
19            proceeding or litigation.                                                                                  
20    * Sec. 7. AS 43.55.023(d) is amended to read:                                                                        
21 (d)  A person that is entitled to take a tax credit under this section that wishes                                      
22 to transfer the unused credit to another person or, for a credit for a lease expenditure                              
23 incurred before July 1, 2017, obtain a cash payment under AS 43.55.028 may apply                                      
24 to the department for a transferable tax credit certificate. An application under this                                  
25 subsection must be in a form prescribed by the department and must include                                              
26 supporting information and documentation that the department reasonably requires.                                       
27 The department shall grant or deny an application, or grant an application as to a lesser                               
28 amount than that claimed and deny it as to the excess, not later than 120 days after the                                
29 latest of (1) March 31 of the year following the calendar year in which the qualified                                   
30 capital expenditure or carried-forward annual loss for which the credit is claimed was                                  
31 incurred; (2) the date the statement required under AS 43.55.030(a) or (e) was filed for                                
01 the calendar year in which the qualified capital expenditure or carried-forward annual                                  
02 loss for which the credit is claimed was incurred; or (3) the date the application was                                  
03 received by the department. If, based on the information then available to it, the                                      
04 department is reasonably satisfied that the applicant is entitled to a credit, the                                      
05 department shall issue the applicant a transferable tax credit certificate for the amount                               
06       of the credit. A certificate issued under this subsection does not expire.                                        
07    * Sec. 8. AS 43.55.023(d), as amended by sec. 7 of this Act, is amended to read:                                     
08 (d)  A person that is entitled to take a tax credit under this section that wishes                                      
09 to transfer the unused credit to another person [OR, FOR A CREDIT FOR A LEASE                                           
10 EXPENDITURE INCURRED BEFORE JULY 1, 2017, OBTAIN A CASH                                                                 
11 PAYMENT UNDER AS 43.55.028] may apply to the department for a transferable                                              
12 tax credit certificate. An application under this subsection must be in a form                                          
13 prescribed by the department and must include supporting information and                                                
14 documentation that the department reasonably requires. The department shall grant or                                    
15 deny an application, or grant an application as to a lesser amount than that claimed and                                
16 deny it as to the excess, not later than 120 days after the latest of (1) March 31 of the                               
17 year following the calendar year in which the qualified capital expenditure or carried-                                 
18 forward annual loss for which the credit is claimed was incurred; (2) the date the                                      
19 statement required under AS 43.55.030(a) or (e) was filed for the calendar year in                                      
20 which the qualified capital expenditure or carried-forward annual loss for which the                                    
21 credit is claimed was incurred; or (3) the date the application was received by the                                     
22 department. If, based on the information then available to it, the department is                                        
23 reasonably satisfied that the applicant is entitled to a credit, the department shall issue                             
24 the applicant a transferable tax credit certificate for the amount of the credit. A                                     
25       certificate issued under this subsection does not expire.                                                         
26    * Sec. 9. AS 43.55.023(e) is amended to read:                                                                        
27 (e)  A person to which a transferable tax credit certificate is issued under (d) of                                     
28 this section may transfer the certificate to another person, and a transferee may further                               
29 transfer the certificate. Subject to the limitations set out in (a) - (d) of this section, and                          
30 notwithstanding any action the department may take with respect to the applicant                                        
31 under (g) of this section, the owner of a certificate may apply the credit or a portion of                              
01       the credit shown on the certificate                                                                               
02 (1)  [ONLY] against a tax levied by AS 43.55.011(e); however [.                                                     
03 HOWEVER], a credit shown on a transferable tax credit certificate may not be applied                                    
04 under this paragraph to reduce a transferee's total tax liability under                                               
05 AS 43.55.011(e) for oil and gas produced during a calendar year to less than 80                                         
06 percent of the tax that would otherwise be due without applying that credit; any [.                                   
07 ANY] portion of a credit not used under this paragraph [SUBSECTION] may be                                            
08       applied in a later period; or                                                                                   
09 (2)  regardless of when the credit was earned, to satisfy a tax,                                                      
10       interest, penalty, fee, or other charge that                                                                    
11 (A)  is related to the tax due under this chapter, except for a                                                       
12 surcharge under AS 43.55.201 - 43.55.299 or 43.55.300 or the tax levied by                                            
13            AS 43.55.011(i) or 43.55.014;                                                                              
14 (B)  is for a calendar year before the year in which the                                                              
15            certificate is applied; and                                                                                
16 (C)  has not, for the purpose of art. IX, sec. 17(a),                                                                 
17 Constitution of the State of Alaska, been subject to an administrative                                                
18            proceeding or litigation.                                                                                  
19    * Sec. 10. AS 43.55.023(g) is amended to read:                                                                       
20 (g)  The issuance of a transferable tax credit certificate under (d) of this section                                    
21 or former (m) of this section [OR THE PURCHASE OF A CERTIFICATE UNDER                                                   
22 AS 43.55.028] does not limit the department's ability to later audit a tax credit claim to                              
23 which the certificate relates or to adjust the claim if the department determines, as a                                 
24 result of the audit, that the applicant was not entitled to the amount of the credit for                                
25 which the certificate was issued. The tax liability of the applicant under                                              
26 AS 43.55.011(e) and 43.55.017 - 43.55.180 is increased by the amount of the credit                                      
27 that exceeds that to which the applicant was entitled, or the applicant's available valid                               
28 outstanding credits applicable against the tax levied by AS 43.55.011(e) are reduced                                    
29 by that amount. If the applicant's tax liability is increased under this subsection, the                                
30 increase bears interest under AS 43.05.225 from the date the transferable tax credit                                    
31 certificate was issued. For purposes of this subsection, an applicant that is an explorer                               
01       is considered a producer subject to the tax levied by AS 43.55.011(e).                                            
02    * Sec. 11. AS 43.55.025(a) is amended to read:                                                                       
03 (a)  Subject to the terms and conditions of this section, a credit against the                                          
04 [PRODUCTION] tax levied by AS 43.55.011(e) or, if the credit is for exploration                                       
05 expenditures incurred for work performed on or after July 1, 2016, against the                                        
06 tax levied by AS 43.20 is allowed for exploration expenditures that qualify under (b)                                 
07       of this section in an amount equal to one of the following:                                                       
08                 (1)  30 percent of the total exploration expenditures that qualify only                                 
09       under (b) and (c) of this section;                                                                                
10 (2)  30 percent of the total exploration expenditures that qualify only                                                 
11       under (b) and (d) of this section;                                                                                
12 (3)  40 percent of the total exploration expenditures that qualify under                                                
13       (b), (c), and (d) of this section;                                                                                
14 (4)  40 percent of the total exploration expenditures that qualify only                                                 
15       under (b) and (e) of this section;                                                                                
16 (5)  80, 90, or 100 percent, or a lesser amount described in (l) of this                                                
17 section, of the total exploration expenditures described in (b)(1) and (2) of this section                              
18 and not excluded by (b)(3) and (4) of this section that qualify only under (l) of this                                  
19       section;                                                                                                          
20 (6)  the lesser of $25,000,000 or 80 percent of the total exploration                                                   
21 drilling expenditures described in (m) of this section and that qualify under (b) and                                   
22       (c)(1), (c)(2)(A), and (c)(2)(C) of this section; or                                                              
23 (7)  the lesser of $7,500,000 or 75 percent of the total seismic                                                        
24 exploration expenditures described in (n) of this section and that qualify under (b) of                                 
25       this section.                                                                                                     
26    * Sec. 12. AS 43.55.025(a), as amended by sec. 11 of this Act, is amended to read:                                   
27 (a)  Subject to the terms and conditions of this section, a credit against the tax                                      
28 levied by AS 43.55.011(e) or, if the credit is for exploration expenditures incurred for                                
29 work performed on or after July 1, 2016, against the tax levied by AS 43.20 is allowed                                  
30 for exploration expenditures that qualify under (b) of this section in an amount equal                                  
31       to one of the following:                                                                                          
01                 (1)  30 percent of the total exploration expenditures that qualify only                                 
02       under (b) and (c) of this section;                                                                                
03                 (2)  30 percent of the total exploration expenditures that qualify only                                 
04       under (b) and (d) of this section;                                                                                
05                 (3)  40 percent of the total exploration expenditures that qualify under                                
06       (b), (c), and (d) of this section;                                                                                
07                 (4)  40 percent of the total exploration expenditures that qualify only                                 
08       under (b) and (e) of this section;                                                                                
09                 (5)  80, 90, or 100 percent, or a lesser amount described in (l) of this                                
10 section, of the total exploration expenditures described in (b)(2) and (3) [(b)(1) AND                                
11 (2)] of this section and not excluded by (b)(4) and (5) [(b)(3) AND (4)] of this section                              
12       that qualify only under (l) of this section;                                                                      
13 (6)  the lesser of $25,000,000 or 80 percent of the total exploration                                                   
14 drilling expenditures described in (m) of this section and that qualify under (b) and                                   
15       (c)(1), (c)(2)(A), and (c)(2)(C) of this section; or                                                              
16 (7)  the lesser of $7,500,000 or 75 percent of the total seismic                                                        
17 exploration expenditures described in (n) of this section and that qualify under (b) of                                 
18       this section.                                                                                                     
19    * Sec. 13. AS 43.55.025(b) is amended to read:                                                                       
20 (b)  To qualify for the production tax credit under (a) of this section, an                                             
21       exploration expenditure                                                                                           
22 (1)  must be incurred for work performed after June 30, 2008, and                                                     
23 before July 1, 2016, except that, [TO QUALIFY FOR THE PRODUCTION TAX                                                  
24 CREDIT UNDER (a)(1), (2), (3), OR (4) OF THIS SECTION] for exploration                                                  
25 conducted outside of the Cook Inlet sedimentary basin and south of 68 degrees North                                     
26       latitude, to qualify for the production tax credit under                                                        
27 (A)  (a)(1), (2), or (3) of this section, an exploration                                                              
28 expenditure must be incurred for work performed after June 30, 2008, and                                                
29            before January 1, 2022; [,] and                                                                            
30 (B)  (a)(4) of this section, an exploration expenditure must                                                          
31 be incurred for work performed after June 30, 2008, and before                                                        
01            January 1, 2018;                                                                                           
02                 (2) [(1)]  may be for seismic or other geophysical exploration costs not                              
03       connected with a specific well;                                                                                   
04                 (3) [(2)]  if for an exploration well,                                                                
05                      (A)  must be incurred by an explorer that holds an interest in the                                 
06            exploration well for which the production tax credit is claimed;                                             
07                      (B)  may be for either a well that encounters an oil or gas                                        
08            deposit or a dry hole;                                                                                       
09                      (C)  must be for a well that has been completed, suspended, or                                     
10 abandoned at the time the explorer claims the tax credit under (f) of this                                              
11            section; and                                                                                                 
12 (D)  must be for goods, services, or rentals of personal property                                                       
13 reasonably required for the surface preparation, drilling, casing, cementing,                                           
14 and logging of an exploration well, and, in the case of a dry hole, for the                                             
15 expenses required for abandonment if the well is abandoned within 18 months                                             
16            after the date the well was spudded;                                                                         
17 (4) [(3)]  may not be for administration, supervision, engineering, or                                                
18 lease operating costs; geological or management costs; community relations or                                           
19 environmental costs; bonuses, taxes, or other payments to governments related to the                                    
20 well; costs, including repairs and replacements, arising from or associated with fraud,                                 
21 wilful misconduct, gross negligence, criminal negligence, or violation of law,                                          
22 including a violation of 33 U.S.C. 1319(c)(1) or 1321(b)(3) (Clean Water Act); or                                       
23       other costs that are generally recognized as indirect costs or financing costs; and                               
24 (5) [(4)]  may not be incurred for an exploration well or seismic                                                     
25 exploration that is included in a plan of exploration or a plan of development for any                                  
26       unit before May 14, 2003.                                                                                         
27    * Sec. 14. AS 43.55.025(f) is amended to read:                                                                       
28            (f)  For a production tax credit under this section,                                                         
29 (1)  an explorer shall, in a form prescribed by the department and,                                                     
30 except for a credit under (k) of this section, within six months of the completion of the                               
31 exploration activity, claim the credit and submit information sufficient to demonstrate                                 
01 to the department's satisfaction that the claimed exploration expenditures qualify under                                
02 this section; in addition, the explorer shall submit information necessary for the                                      
03 commissioner of natural resources to evaluate the validity of the explorer's compliance                                 
04       with the requirements of this section;                                                                            
05                 (2)  an explorer shall agree, in writing,                                                               
06 (A)  to notify the Department of Natural Resources, within 30                                                           
07 days after completion of seismic or geophysical data processing, completion of                                          
08 well drilling, or filing of a claim for credit, whichever is the latest, for which                                      
09 exploration costs are claimed, of the date of completion and submit a report to                                         
10 that department describing the processing sequence and providing a list of data                                         
11            sets available;                                                                                              
12 (B)  to provide to the Department of Natural Resources, within                                                          
13 30 days after the date of a request, unless a longer period is provided by the                                          
14 Department of Natural Resources, specific data sets, ancillary data, and reports                                        
15            identified in (A) of this paragraph; in this subparagraph,                                                   
16 (i)  a seismic or geophysical data set includes the data                                                                
17 for an entire seismic survey, irrespective of whether the survey area                                                   
18 covers nonstate land in addition to state land or land in a unit in                                                     
19                 addition to land outside a unit;                                                                        
20 (ii)  well data include all analyses conducted on physical                                                              
21 material, and well logs collected from the well, results, and copies of                                                 
22 data collected and data analyses for the well, including well logs;                                                     
23 sample analyses; testing geophysical and velocity data including                                                        
24 seismic profiles and check shot surveys; testing data and analyses; age                                                 
25                 data; geochemical analyses; and tangible material;                                                      
26 (C)  that, notwithstanding any provision of AS 38, information                                                          
27 provided under this paragraph will be held confidential by the Department of                                            
28            Natural Resources,                                                                                           
29 (i)  in the case of well data, until the expiration of the                                                              
30 24-month period of confidentiality described in AS 31.05.035(c), at                                                     
31 which time the Department of Natural Resources will release the                                                         
01 information after 30 days' public notice unless, in the discretion of the                                               
02 commissioner of natural resources, it is necessary to protect                                                           
03 information relating to the valuation of unleased acreage in the same                                                   
04 vicinity, or unless the well is on private land and the owner, including                                                
05 the lessor but not the lessee, of the oil and gas resources has not given                                               
06                 permission to release the well data;                                                                    
07 (ii)  in the case of seismic or other geophysical data,                                                                 
08 other than seismic data acquired by seismic exploration subject to (k) of                                               
09 this section, for 10 years following the completion date, at which time                                                 
10 the Department of Natural Resources will release the information after                                                  
11 30 days' public notice, except as to seismic or other geophysical data                                                  
12 acquired from private land, unless the owner, including a lessor but not                                                
13 a lessee, of the oil and gas resources in the private land gives                                                        
14 permission to release the seismic or other geophysical data associated                                                  
15                 with the private land;                                                                                  
16 (iii)  in the case of seismic data obtained by seismic                                                                  
17 exploration subject to (k) of this section, only until the expiration of 30                                             
18 days' public notice issued on or after the date the production tax credit                                               
19                 certificate is issued under (5) of this subsection;                                                     
20 (3)  if more than one explorer holds an interest in a well or seismic                                                   
21 exploration, each explorer may claim an amount of credit that is proportional to the                                    
22       explorer's cost incurred;                                                                                         
23 (4)  the department may exercise the full extent of its powers as though                                                
24 the explorer were a taxpayer under this title, in order to verify that the claimed                                      
25       expenditures are qualified exploration expenditures under this section; and                                       
26 (5)  if the department is satisfied that the explorer's claimed                                                         
27 expenditures are qualified under this section and that all data required to be submitted                                
28 under this section have been submitted, the department shall issue to the explorer a                                    
29 production tax credit certificate for the amount of credit to be allowed against                                        
30 production taxes levied by AS 43.55.011(e) and, if the credit is for exploration                                      
31 expenditures incurred for work performed on or after July 1, 2016, against taxes                                      
01       levied by AS 43.20; notwithstanding any contrary provision of AS 38, AS 40.25.100,                              
02       or AS 43.05.230, the following information is not confidential:                                                   
03                      (A)  the explorer's name;                                                                          
04                      (B)  the date of the application;                                                                  
05                      (C)  the location of the well or seismic exploration;                                              
06                      (D)  the date of the department's issuance of the certificate; and                                 
07                      (E)  the date on which the information required to be submitted                                    
08            under this section will be released.                                                                         
09    * Sec. 15. AS 43.55.025(g) is amended to read:                                                                       
10 (g)  An explorer, other than an entity that is exempt from taxation under this                                          
11 chapter, may transfer, convey, or sell its production tax credit certificate to any person,                             
12 and any person who receives a production tax credit certificate may also transfer,                                      
13 convey, or sell the certificate. A production tax credit certificate that is                                          
14 transferred, conveyed, or sold under this section may not be applied against the                                      
15       tax levied by AS 43.20.                                                                                         
16    * Sec. 16. AS 43.55.025(h) is amended to read:                                                                       
17 (h)  A producer that purchases a production tax credit certificate may apply the                                        
18 credits against its production tax levied by AS 43.55.011(e). Regardless of the price                                   
19 the producer paid for the certificate, the producer may receive a credit against its                                    
20 production tax liability for the full amount of the credit, but for not more than the                                   
21 amount for which the certificate is issued. A production tax credit or a portion of a                                 
22 production tax credit or a production tax credit certificate or a portion of a                                        
23       production tax credit certificate allowed under this section                                                    
24                 (1)  may not be applied more than once;                                                             
25                 (2)  may be applied in a later calendar year;                                                         
26 (3)  may, regardless of when the credit was earned, be applied to                                                     
27       satisfy a tax, interest, penalty, fee, or other charge that                                                     
28 (A)  is related to the tax due under this chapter for a prior                                                         
29 year, except for a surcharge under AS 43.55.201 - 43.55.299 or 43.55.300                                              
30            or the tax levied by AS 43.55.011(i) or 43.55.014; and                                                     
31 (B)  has not, for the purpose of art. IX, sec. 17(a),                                                                 
01            Constitution of the State of Alaska, been subject to an administrative                                     
02            proceeding or litigation.                                                                                  
03    * Sec. 17. AS 43.55.025(i) is amended to read:                                                                       
04            (i)  For a production tax credit under this section,                                                         
05                 (1)  a credit may not be applied to reduce a taxpayer's tax liability under                             
06       AS 43.55.011(e) below zero for a calendar year;                                                                   
07 (2)  if the production tax credit is for exploration expenditures                                                     
08 incurred for work performed on or after July 1, 2016, the explorer may apply the                                      
09 credit to reduce the explorer's tax liability under AS 43.20, except that the credit                                  
10 may not be applied to reduce the explorer's tax liability under AS 43.20 below                                        
11       zero for a tax year; and                                                                                        
12 (3) [(2)]  an amount of the production tax credit in excess of the amount                                             
13 that may be applied for a calendar or tax year under this subsection may be carried                                   
14 forward and applied against the taxpayer's tax liability under AS 43.55.011(e) in one                                   
15       or more later calendar years or under AS 43.20 in one or more later tax years.                                  
16    * Sec. 18. AS 43.55.025(k) is amended to read:                                                                       
17 (k)  Subject to the terms and conditions of this section, if a claim is filed under                                     
18 (f)(1) of this section before January 1, 2016, a credit against the production tax levied                               
19 by AS 43.55.011(e) is allowed in an amount equal to five percent of an eligible                                         
20 expenditure under this subsection incurred for seismic exploration performed before                                     
21       July 1, 2003. To be eligible under this subsection, an expenditure must                                           
22                 (1)  have been for seismic exploration that                                                             
23 (A)  obtained data that the commissioner of natural resources                                                           
24 considers to be in the best interest of the state to acquire for public distribution;                                   
25            and                                                                                                          
26 (B)  was conducted outside the boundaries of a production unit;                                                         
27 however, the amount of the expenditure that is otherwise eligible under this                                            
28 section is reduced proportionately by the portion of the seismic exploration                                            
29            activity that crossed into a production unit; and                                                            
30                 (2)  qualify under (b)(4) [(b)(3)] of this section.                                                   
31    * Sec. 19. AS 43.55.025 is amended by adding a new subsection to read:                                               
01 (q)  On the day on which an application for a tax credit certificate is submitted                                       
02 under (f) of this section, the department shall issue to the explorer a conditional tax                                 
03 credit certificate. For the purposes of AS 43.55.028(e), the department may, at the                                     
04 time of an application under AS 43.55.028(e), accept from an explorer a conditional                                     
05 tax credit certificate issued under this subsection; however, the department may not                                    
06 purchase a conditional tax credit certificate. A conditional tax credit certificate under                               
07       this subsection                                                                                                   
08 (1)  may be used to apply for the purchase of a tax credit certificate                                                  
09 under AS 43.55.028(e) if the conditional tax credit certificate is for exploration                                      
10       expenditures incurred before July 1, 2017;                                                                        
11                 (2)  may not be sold, transferred, or conveyed;                                                         
12                 (3)  has no value; and                                                                                  
13 (4)  expires on the day on which the department issues a transferable                                                   
14       tax credit certificate under (f) of this section.                                                                 
15    * Sec. 20. AS 43.55.028(a) is amended to read:                                                                       
16 (a)  The oil and gas tax credit fund is established as a separate fund of the state.                                    
17 The purpose of the fund is to purchase transferable tax credit certificates issued under                                
18 AS 43.55.023 and production tax credit certificates issued under AS 43.55.025 and to                                    
19 pay refunds and payments claimed under AS 43.20.046, 43.20.047, or 43.20.053. The                                     
20 oil and gas tax credit fund established under this subsection may not be used to                                      
21 purchase a tax credit certificate for a credit earned under this chapter for activity                                 
22       occurring on or after July 1, 2017.                                                                             
23    * Sec. 21. AS 43.55.028(e) is amended to read:                                                                       
24 (e)  The department, on the written application of a person to whom a                                                   
25 transferable tax credit certificate has been issued under AS 43.55.023(d) or former                                     
26 AS 43.55.023(m) for an expenditure incurred before July 1, 2017, or to whom a                                         
27 production tax credit certificate has been issued under AS 43.55.025(f) for an                                        
28 expenditure incurred before July 1, 2017, may use available money in the oil and                                      
29 gas tax credit fund to purchase, in whole or in part, the certificate. The department                                   
30 may not purchase a total of more than $70,000,000 in tax credit certificates from a                                     
31 person in a calendar year. Before purchasing a certificate or part of a certificate, the                                
01       department shall find that                                                                                        
02                 (1)  the calendar year of the purchase is not earlier than the first                                    
03       calendar year for which the credit shown on the certificate would otherwise be allowed                            
04       to be applied against a tax;                                                                                      
05                 (2)  the application is not the result of the division of a single entity into                          
06       multiple entities that would reasonably be expected to apply as a single entity if the                            
07       $70,000,000 limitation in this subsection did not exist;                                                          
08                 (3)  the applicant's total tax liability under AS 43.55.011(e), after                                   
09       application of all available tax credits, for the calendar year in which the application is                       
10       made is zero;                                                                                                     
11 (4)  the applicant's average daily production of oil and gas taxable                                                    
12 under AS 43.55.011(e) during the calendar year preceding the calendar year in which                                     
13       the application is made was not more than 50,000 BTU equivalent barrels; and                                      
14 (5)  the purchase is consistent with this section and regulations adopted                                               
15       under this section.                                                                                               
16    * Sec. 22. AS 43.55.029(a) is amended to read:                                                                       
17 (a)  An explorer or producer that has applied for a production tax credit under                                         
18 AS 43.55.023(a) or (l) [AS 43.55.023(a), (b), OR (l)] or 43.55.025(a) may make a                                      
19 present assignment of the production tax credit certificate expected to be issued by the                                
20 department to a third-party assignee. The assignment may be made either at the time                                     
21 the application is filed with the department or not later than 30 days after the date of                                
22 filing with the department. Once a notice of assignment in compliance with this                                         
23 section is filed with the department, the assignment is irrevocable and cannot be                                       
24 modified by the explorer or producer without the written consent of the assignee                                        
25 named in the assignment. If a production tax credit certificate is issued to the explorer                               
26 or producer, the notice of assignment remains effective and shall be filed with the                                     
27 department by the explorer or producer together with any application for the                                            
28       department to purchase the certificate under AS 43.55.028(e).                                                     
29    * Sec. 23. AS 43.55.160(d) is amended to read:                                                                       
30 (d)  Irrespective of whether a producer produces taxable oil or gas during a                                            
31 calendar year or month, the producer is considered to have generated a positive                                         
01 production tax value if a calculation described in (a) of this section yields a positive                                
02 number because the producer's adjusted lease expenditures for a calendar year under                                     
03 AS 43.55.165 and 43.55.170 are less than zero as a result of the producer's receiving a                                 
04 payment or credit under AS 43.55.170. An explorer that has [TAKEN A TAX                                                 
05 CREDIT UNDER AS 43.55.023(b) OR THAT HAS] obtained a transferable tax credit                                            
06 certificate under AS 43.55.023(d) for the amount of a tax credit under former                                         
07 AS 43.55.023(b) is considered a producer, subject to the tax levied by [UNDER]                                        
08 AS 43.55.011(e), to the extent that the explorer generates a positive production tax                                    
09       value as the result of the explorer's receiving a payment or credit under AS 43.55.170.                           
10    * Sec. 24. AS 43.55.160(e) is amended to read:                                                                       
11 (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170                                                   
12 incurred to explore for, develop, or produce oil or gas from a lease or property                                      
13 outside the Cook Inlet sedimentary basin that would otherwise be deductible by a                                      
14 producer in a calendar year but whose deduction would cause an annual production tax                                    
15 value calculated under (a)(1) or (h) of this section of taxable oil or gas produced                                     
16 during the calendar year to be less than zero may be used to establish a carried-                                       
17 forward annual loss under AS 43.55.165(a)(3). A reduction under (f) or (g) of this                                    
18 section must be added back to the calculation of production tax values for that                                       
19 calendar year before the determination of a carried-forward annual loss under                                         
20 this subsection [AS 43.55.023(b)]. However, the department shall provide by                                           
21 regulation a method to ensure that, for a period for which a producer's tax liability is                                
22 limited by AS 43.55.011(o) or (p) [AS 43.55.011(j), (k), (o), OR (p)], any adjusted                                   
23 lease expenditures under AS 43.55.165 and 43.55.170 that would otherwise be                                             
24 deductible by a producer for that period but whose deduction would cause a                                              
25 production tax value calculated under (a)(1)(E) or (F) or (h)(3) [(a)(1)(C), (D), (E),                                
26 OR (F), OR (h)(3)] of this section to be less than zero are accounted for as though the                                 
27 adjusted lease expenditures had first been used as deductions in calculating the                                        
28 production tax values of oil or gas subject to any of the limitations under                                             
29 AS 43.55.011(o) or (p) [AS 43.55.011(j), (k), (o), OR (p)] that have positive                                         
30 production tax values so as to reduce the tax liability calculated without regard to the                                
31 limitation to the maximum amount provided for under the applicable provision of                                         
01 AS 43.55.011(o) or (p) [AS 43.55.011(j), (k), (o), OR (p)]. Only the amount of those                                  
02 adjusted lease expenditures remaining after the accounting provided for under this                                      
03 subsection may be used to establish a carried-forward annual loss under                                                 
04 AS 43.55.165(a)(3) [AS 43.55.023(b)]. In this subsection, "producer" includes                                         
05       "explorer."                                                                                                       
06    * Sec. 25. AS 43.55.165(a), as amended by sec. 29, ch. 4, 4SSLA 2016, is amended to read:                            
07            (a)  For purposes of this chapter, a producer's lease expenditures for a calendar                            
08       year are                                                                                                          
09                 (1)  costs, other than items listed in (e) of this section, that are                                    
10 (A)  incurred by the producer during the calendar year after                                                            
11 March 31, 2006, to explore for, develop, or produce oil or gas deposits located                                         
12 within the producer's leases or properties in the state or, in the case of land in                                      
13 which the producer does not own an operating right, operating interest, or                                              
14 working interest, to explore for oil or gas deposits within other land in the                                           
15            state; and                                                                                                   
16 (B)  allowed by the department by regulation, based on the                                                              
17 department's determination that the costs satisfy the following three                                                   
18            requirements:                                                                                                
19 (i)  the costs must be incurred upstream of the point of                                                                
20                 production of oil and gas;                                                                              
21 (ii)  the costs must be ordinary and necessary costs of                                                                 
22 exploring for, developing, or producing, as applicable, oil or gas                                                      
23                 deposits; and                                                                                           
24 (iii)  the costs must be direct costs of exploring for,                                                                 
25                 developing, or producing, as applicable, oil or gas deposits; [AND]                                     
26 (2)  a reasonable allowance for that calendar year, as determined under                                                 
27 regulations adopted by the department, for overhead expenses that are directly related                                  
28       to exploring for, developing, or producing, as applicable, the oil or gas deposits; and                         
29 (3)  lease expenditures incurred in a previous calendar year,                                                         
30       subject to (m) - (s) of this section, that                                                                      
31 (A)  met the requirements of AS 43.55.160(e) in the year in                                                           
01            which the lease expenditures were incurred;                                                                
02                      (B)  have not been deducted in the determination of the                                          
03            production tax value of oil and gas under AS 43.55.160(a) or (h) in a                                      
04            previous calendar year;                                                                                    
05                      (C)  were not the basis of a credit under this title; and                                        
06                      (D)  were incurred to explore for, develop, or produce an oil                                    
07            or gas deposit located in the state outside the Cook Inlet sedimentary                                     
08            basin.                                                                                                     
09    * Sec. 26. AS 43.55.165(f) is amended to read:                                                                       
10 (f)  For purposes of AS 43.55.023(a) [AND (b)] and only as to expenditures                                              
11 incurred to explore for an oil or gas deposit located within land in which an explorer                                  
12 does not own a working interest, the term "producer" in this section includes                                           
13       "explorer."                                                                                                       
14    * Sec. 27. AS 43.55.165(l) is amended by adding a new paragraph to read:                                             
15 (4)  "carried-forward annual loss" means a loss established under (a)(3)                                                
16       of this section.                                                                                                  
17    * Sec. 28. AS 43.55.165 is amended by adding new subsections to read:                                                
18 (m)  In a calendar year, after application of a producer's lease expenditures that                                      
19 are incurred in that calendar year, the producer may choose to apply all or a portion of                                
20 a carried-forward annual loss or carry any unused portion forward. The department                                       
21 may not require a producer to apply all or a portion of a carried-forward annual loss in                                
22       a calendar year.                                                                                                  
23 (n)  During a calendar year in which a taxpayer's liability under                                                       
24 AS 43.55.011(e) is determined under AS 43.55.011(f), the maximum amount of                                              
25 carried-forward annual loss that a taxpayer may apply in that year is equal to the                                      
26 amount, when combined with the lease expenditures of the current year and any                                           
27 credits under this chapter, necessary to reduce the amount calculated under                                             
28 AS 43.55.011(e) to the equivalent amount of tax due under AS 43.55.011(f) before the                                    
29 application of any credits under this chapter. An amount of carried-forward annual                                      
30       loss not applied under this subsection may continue to be carried forward.                                        
31            (o)  A carried-forward annual loss may only be applied                                                       
01 (1)  to determine the production tax value of oil or gas for a category                                                 
02 for which a separate annual production tax value is required to be calculated under                                     
03 AS 43.55.160(a) or (h) if the lease expenditure resulting in the carried-forward annual                                 
04       loss was incurred in the same category;                                                                           
05                 (2)  beginning in the calendar year in which regular production of oil or                               
06       gas from the lease or property where the lease expenditure resulting in the carried-                              
07       forward annual loss was incurred commences.                                                                       
08            (p)  A carried-forward annual loss for a lease expenditure incurred on a lease                               
09       or property that                                                                                                  
10 (1)  did not commence regular production of oil or gas before or during                                                 
11 the year the lease expenditure was incurred decreases in value each year by one-tenth                                   
12 of the value of the carried-forward annual loss in the preceding year, beginning                                        
13 January 1 of the 11th calendar year after the lease expenditure is carried forward under                                
14 (a)(3) of this section; a decrease in value under this paragraph does not apply for a                                   
15 year in which the department determines that regular production of oil or gas did not                                   
16 commence because of a natural disaster, an injunction or other court order, or an                                       
17       administrative order;                                                                                             
18 (2)  commenced regular production of oil or gas before or during the                                                    
19 year the lease expenditure was incurred decreases in value each year by one-tenth of                                    
20 the value of the carried-forward annual loss in the preceding year, beginning January 1                                 
21 of the eighth calendar year after the lease expenditure is carried forward under (a)(3)                                 
22       of this section.                                                                                                  
23 (q)  A carried-forward annual loss under (p) of this section may not decrease in                                        
24       value for a partial calendar year.                                                                                
25 (r)  For purposes of (o)(2) and (p) of this section, the Alaska Oil and Gas                                             
26       Conservation Commission shall determine the commencement of regular production.                                   
27 (s)  In adopting a regulation that defines the lease or property where a lease                                          
28 expenditure resulting in a carried-forward annual loss is incurred for purposes of (o)                                  
29 and (p) of this section, the department shall include an exploration lease expenditure                                  
30       that is reasonably related to the lease or property.                                                              
31    * Sec. 29. AS 43.55.170(c) is amended to read:                                                                       
01 (c)  For purposes of AS 43.55.023(a) [AND (b)] and only as to expenditures                                              
02 incurred to explore for an oil or gas deposit located within land in which an explorer                                  
03 does not own a working interest, the term "producer" in this section includes                                           
04       "explorer."                                                                                                       
05    * Sec. 30. AS 43.55.023(b) is repealed January 1, 2018.                                                              
06    * Sec. 31. AS 43.05.230(l); AS 43.20.046(e), 43.20.047(e), 43.20.053(e); AS 43.55.025(q),                            
07 43.55.028, and 43.55.029 are repealed.                                                                                  
08    * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to                           
09 read:                                                                                                                   
10 LEGISLATIVE WORKING GROUP. (a) A legislative working group is established                                               
11 to analyze the state's fiscal regime for oil and gas, review the state's tax structure for and rates                    
12 on oil and gas produced in the state, recommend changes to the legislature for consideration                            
13 during the Second Regular Session of the Thirtieth Alaska State Legislature, and develop                                
14 terms for a comprehensive fiscal regime, including                                                                      
15 (1)  a tax structure that accounts for the unique circumstances for each oil and                                        
16 gas producing area in the state;                                                                                        
17 (2)  incentives other than direct monetary support from the state for the                                               
18 exploration, development, and production of oil and gas in the state;                                                   
19 (3)  consideration of the competitiveness of each area of the state to attract new                                      
20 oil and gas development;                                                                                                
21 (4)  alternative means of state support for the exploration, development, and                                           
22 production of oil and gas in the state, including loan guarantees or other financial support                            
23 through the Alaska Industrial Development and Export Authority or other state corporation or                            
24 entity;                                                                                                                 
25 (5)  consideration of the unique market considerations of the Cook Inlet                                                
26 sedimentary basin and the need to support energy supply security for communities in                                     
27 Southcentral Alaska;                                                                                                    
28 (6)  the applicability of the recommended tax structure to gas currently subject                                        
29 to AS 43.55.011(o).                                                                                                     
30       (b)  The working group consists of                                                                                
31 (1)  two co-chairs, one of whom is a member of the house of representatives                                             
01 appointed by the speaker of the house of representatives, and one of whom is a member of the                            
02 senate appointed by the president of the senate; and                                                                    
03 (2)  members appointed by the co-chairs; members must be legislators and                                                
04 must include members of the majority and minority caucuses.                                                             
05 (c)  The co-chairs of the working group may form an advisory group to the working                                       
06 group, composed of members who are not legislators and who have expertise and skills to                                 
07 assist in the review and development of a new plan for the tax structure for and rates on oil                           
08 and gas produced in the state. The members of an advisory group may include commissioners                               
09 or employees of state departments, members of the oil and gas industry or trade associations,                           
10 and economists.                                                                                                         
11 (d)  The working group may be supported by legislative consultants under contract                                       
12 through the Legislative Budget and Audit Committee.                                                                     
13    * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to                           
14 read:                                                                                                                   
15 APPLICABILITY: TAX CREDITS UNDER AS 43.55.025 APPLIED AGAINST                                                           
16 TAX DUE UNDER AS 43.20. AS 43.20.044(a), as amended by sec. 4 of this Act, and                                          
17 AS 43.55.025(a), (f), and (i), as amended by secs. 11, 14, and 17 of this Act, apply to a tax                           
18 credit that has been earned under AS 43.55.025 for work performed on or after July 1, 2016.                             
19    * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to                           
20 read:                                                                                                                   
21 APPLICABILITY: TAX CREDIT AND CREDIT CERTIFICATE CARRYBACK.                                                             
22 AS 43.55.023(c), as amended by sec. 6 of this Act, AS 43.55.023(e), as amended by sec. 9 of                             
23 this Act, and AS 43.55.025(h), as amended by sec. 16 of this Act, apply to a tax credit earned                          
24 or transferable tax credit certificate issued under AS 43.55.023 or a production tax credit                             
25 certificate issued under AS 43.55.025(f), regardless of when the credit was earned or the                               
26 certificate was issued.                                                                                                 
27    * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to                           
28 read:                                                                                                                   
29 APPLICABILITY: LEASE EXPENDITURES. AS 43.55.165(a)(3) and (m) - (s),                                                    
30 added by secs. 25 and 28 of this Act, apply to a lease expenditure incurred on or after the                             
31 effective date of secs. 25 and 28 of this Act.                                                                          
01    * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to                           
02 read:                                                                                                                   
03 TRANSITION: INTEREST ON DELINQUENT TAXES. Notwithstanding the                                                           
04 effective date of sec. 3 of this Act, a delinquent tax under AS 43.55 bears interest in each                            
05 calendar quarter of 2017 as provided under AS 43.05.225(1) as that paragraph read on the day                            
06 before the effective date of sec. 3 of this Act.                                                                        
07    * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to                           
08 read:                                                                                                                   
09       TRANSITION:   PUBLIC   INFORMATION    UNDER    AS 43.05.230(l).                                                   
10 Notwithstanding the repeal of AS 43.05.230(l) by sec. 31 of this Act, on April 30 of the year                           
11 following the calendar year in which sec. 31 of this Act takes effect, the Department of                                
12 Revenue shall make public the information required under AS 43.05.230(l), as that section                               
13 read on the day before the effective date of sec. 31 of this Act.                                                       
14    * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to                           
15 read:                                                                                                                   
16 TRANSITION: CASH PAYMENT FOR A TAX CREDIT EARNED FOR A                                                                  
17 CARRIED-FORWARD ANNUAL LOSS UNDER AS 43.55.023(b) IN CALENDAR YEAR                                                      
18 2017. Notwithstanding AS 43.55.023(d) and 43.55.028(a) and (e), as amended by secs. 7, 20,                              
19 and 21 of this Act, a producer or explorer who earns a tax credit for a carried-forward annual                          
20 loss under AS 43.55.023(b) in calendar year 2017 may apply to the Department of Revenue                                 
21 for a transferable tax credit certificate under AS 43.55.023(d), as that subsection read on the                         
22 day before the effective date of sec. 7 of this Act, for the entire amount of the credit earned                         
23 during calendar year 2017. However, the Department of Revenue may not purchase more than                                
24 half of the value of a transferable tax credit certificate issued under AS 43.55.023(d), as that                        
25 subsection read on the day before the effective date of sec. 7 of this Act, for a carried-forward                       
26 annual loss earned during calendar year 2017 under AS 43.55.023(b); the remainder of the tax                            
27 credit certificate may be applied against a tax levied by AS 43.55.011(e).                                              
28    * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to                           
29 read:                                                                                                                   
30 TRANSITION: CARRIED-FORWARD ANNUAL LOSSES. (a) Notwithstanding the                                                      
31 repeal of AS 43.55.023(b) by sec. 30 of this Act and the amendments to AS 43.55.160(d) and                              
01 (e), 43.55.165(f), and 43.55.170(c) by secs. 23, 24, 26, and 29 of this Act, a taxpayer who                             
02 incurs a carried-forward annual loss before the repeal of AS 43.55.023(b) by sec. 30 of this                            
03 Act that qualifies for a carried-forward annual loss credit under AS 43.55.023(b) may apply                             
04 for a credit or tax credit certificate under AS 43.55.023(d), subject to the requirements of                            
05 AS 43.55.160(d) and (e), as those subsections read on the day before the repeal of                                      
06 AS 43.55.023(b) by sec. 30 of this Act.                                                                                 
07 (b)  The Department of Revenue may continue to apply and enforce AS 43.55.023(b),                                       
08 as that subsection read on the day before the repeal of AS 43.55.023(b) by sec. 30 of this Act,                         
09 for a carried-forward annual loss incurred before the repeal of AS 43.55.023(b) by sec. 30 of                           
10 this Act.                                                                                                               
11    * Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to                           
12 read:                                                                                                                   
13 TRANSITION: OIL AND GAS TAX CREDIT FUND. Subject to appropriation, the                                                  
14 balance of the oil and gas tax credit fund created under AS 43.55.028(a) and repealed by sec.                           
15 31 of this Act lapses into the general fund.                                                                            
16    * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to                           
17 read:                                                                                                                   
18 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding any                                                           
19 contrary provision of AS 44.62.240, if the                                                                              
20 (1)  Department of Revenue expressly designates in a regulation that the                                                
21 regulation applies retroactively, a regulation adopted by the Department of Revenue to                                  
22 implement, interpret, make specific, or otherwise carry out this Act may apply retroactively to                         
23 the effective date of the law implemented by the regulation;                                                            
24 (2)  Department of Natural Resources expressly designates in a regulation that                                          
25 the regulation applies retroactively, a regulation adopted by the Department of Natural                                 
26 Resources to implement, interpret, make specific, or otherwise carry out this Act may apply                             
27 retroactively to the effective date of the law implemented by the regulation.                                           
28    * Sec. 42. The uncodified law of the State of Alaska is amended by adding a new section to                           
29 read:                                                                                                                   
30 RETROACTIVITY. Sections 7 and 19 - 21 of this Act are retroactive to July 1, 2017.                                      
31    * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to                           
01 read:                                                                                                                   
02       CONDITIONAL EFFECT; NOTIFICATION. (a) Sections 2, 5, 8, 10, 31, 37, and 40                                        
03 of this Act take effect only if the commissioner of revenue notifies the revisor of statutes in                         
04 writing as required under (b) of this section.                                                                          
05       (b)  The commissioner of revenue shall notify the revisor of statutes in writing when                             
06            (1)  there are no outstanding applications for purchase of tax credit certificates                           
07 or claims for refunds or payments for which payment has not been made under                                             
08 AS 43.55.028(e); and                                                                                                    
09            (2)  it has been at least one year since a person has applied for a purchase,                                
10 payment, or refund under AS 43.55.028.                                                                                  
11       (c)  In this section,                                                                                             
12 (1)  "claim for refund or payment" means a refund and payment claimed under                                             
13 AS 43.20.046, 43.20.047, or 43.20.053 subject to payment under AS 43.55.028;                                            
14 (2)  "tax credit certificate" means a transferable tax credit certificate issued                                        
15 under AS 43.55.023 or a production tax credit certificate issued under AS 43.55.025 subject                             
16 to purchase under AS 43.55.028.                                                                                         
17    * Sec. 44. Sections 4, 6, 7, 9, 11, 14 - 17, 19 - 21, 32 - 34, 38, and 41 - 43 of this Act take                      
18 effect immediately under AS 01.10.070(c).                                                                               
19    * Sec. 45. Section 25 of this Act takes effect on the effective date of sec. 29, ch. 4, 4SSLA                        
20 2016.                                                                                                                   
21    * Sec. 46. If, under sec. 43 of this Act, secs. 2, 5, 8, 10, 31, 37, and 40 of this Act take                         
22 effect, they take effect on the later of                                                                                
23            (1)  January 1, 2022; or                                                                                     
24 (2)  January 1 of the calendar year following the year of notice under sec. 43 of                                       
25 this Act.                                                                                                               
26    * Sec. 47. Except as provided in secs. 44 - 46 of this Act, this Act takes effect January 1,                         
27 2018.                                                                                                                   
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