Governor adds HB 111 to special session; Stalemate appears likely outcome
Last week, Gov. Bill Walker added HB 111 to the call for the current special session that runs until July 15.
KEEP supports the Senate version of HB 111 and appreciates that the Governor has proposed a “compromise” version of HB 111 that ends cash credits but still allows oil companies to write off net operating losses against future production. Some work remains for the Senate and the Governor to agree on a final provision that would best maintain effective incentives, but it is a sign of progress that they are talking.
At this time, the House still insists on rewriting our oil tax structure to extract higher taxes and seems unwilling to concentrate on the elimination of the remaining North Slope cash credits. Until this happens, it appears that the legislative stalemate will continue beyond this special session.
Failure to finish work on HB 111 will likely be a disincentive to investment on the North Slope for another year while economic uncertainty prevails and our recession deepens.
It appears likely that there will be no further action on these important fiscal issues this summer. Hopefully, a capital budget, the Senate version of HB 111 and some version of SB 26 can pass in a fall special session.