Keep Alaska Competitive with Senate version of HB 111

Alaska has reached a crossroads for our economic future and our legislators have a choice to make. What happens in Juneau in the next few weeks could determine whether Alaska is a competitive and viable place to live and work – or whether it suffers a failed economy.

The House and Senate conference committees are expected to begin negotiations this week on the oil tax bill, HB 111. KEEP Alaska Competitive supports the Senate version of the bill because it promotes long-term, sustainable economic growth and encourages stability in our oil and gas industry.

The Senate version of HB 111 accomplishes the stated goal of the Governor, House and Senate: it eliminates cashable oil and gas credits while maintaining incentives for new oil by allowing net operating losses to be deducted against future production. The savings to the State is estimated to be $1.2 billion over the next 10 years.

Here is what the Senate version of HB 111 does:

• Eliminates cash credits statewide starting in 2018. Most importantly, the Senate version eliminates cash credits in a manner that retains incentives for new production
• 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
• Hardens a minimum production tax of 4 percent

Here is the list of conference committee members for HB 111:

Please call or write your legislators today and urge them to support the Senate version of HB 111. Not sure how to reach your lawmaker? Click here for the official legislator contact list.

For the latest information about HB 111 and to learn more about how you can help KEEP Alaska Competitive, please visit KeepAlaskaCompetitive.com.

P.O. Box 220884, Anchorage, AK 99522 | 907.569.7070 | keepalaskacompetitive.com
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