Senate Resources Committee Retools House Bill 111
The Senate Resources Committee made changes this week to HB 111, the oil tax bill. The version passed by the House significantly raised taxes on the industry when it is trying to prevent further layoffs and bring new oil reserves into production during a time of low oil prices. Our goal should be to put more oil in the pipeline, which the existing tax system does, because that means more revenues, jobs and economic opportunities for our state and its residents.
The new version of HB 111 eliminates cash credits in a way that retains incentives for new production. It does not make any significant tax changes to the SB 21 basic tax structure as did both House versions. We thank the Senate Resources Committee for its careful work on the bill.
Here are the highlights of the current version of HB 111:
- Eliminates cash credits statewide starting in 2018
- Maintains existing production tax policies when oil prices rise to the $60 to $100/barrel range
- Repeals the net operating loss as a cashable credit while retaining deductibility and encouraging oil production
- Preserves Middle Earth credits as non-refundable and allows the company earning the credits to apply them against corporate income tax as well as against production tax
- Maintains a minimum production tax of 4 percent
- Transitions the carry forward loss system to allow cost recovery and non-cash support through an uplift
Make your voice heard in Juneau!
The Senate Finance Committee will accept public testimony on HB 111 from 9 a.m. to 11 a.m. on Saturday, April 29. Please visit your local Legislative Information Office to testify in person, or call the toll-free number to participate by phone: 844-586-9085. Testimony will be limited to two minutes per person so comments should be succinct. If you cannot testify on Saturday, please email members of the Senate Finance Committee at:
Senator.Lyman.Hoffman@akleg.gov
Senator.Anna.MacKinnon@akleg.gov
Senator.Click.Bishop@akleg.gov
Senator.Shelley.Hughes@akleg.gov
Senator.Peter.Micciche@akleg.gov
Senator.Donald.Olson@akleg.gov
Senator.Natasha.vonImhof@akleg.gov
Bullet points to consider:
- The new version of HB 111 is less harmful to future investment than the bill passed by the House which would have put jobs and new oil production at risk.
- The new version of HB 111, through modification of the oil tax credits program, limits future financial exposure for the State while at the same time leaves the voter approved oil tax structure in place which encourages production and jobs.
- The Senate did good work in eliminating the provisions of the bill that would have significantly raised oil taxes at prices below $100.
- Our current, voter-approved tax policy is working. Oil companies have responded with over $5 billion in new projects. We are on track to mark the second consecutive year of increased production on the North Slope. More oil is the answer!
Your testimony makes a difference! The North Slope just experienced two consecutive years of higher oil production for the first time in three decades. Together we can KEEP that trend going. Click on this link to see a complete list of Legislative Information Offices.
Thank you for supporting Alaska’s economy,
KEEP
P.O. Box 220884, Anchorage, AK 99522 | 907.569.7070 | keepalaskacompetitive.com
View web version | Unsubscribe