CSHB 217(RES) Summary

• Creates a new special election (AS 43.55.014) allowing producers of gas used in the state from leases outside Cook Inlet sedimentary basin to limit tax on that production before 2022, capped at the maximum tax rate for in-state gas under existing law.

• Election must be made at time of first monthly installment payment, and applies the same tax credit provisions and lease expenditure deductions as other limited gas production.

• Expands definition of "used in the state" to include gas used as fuel or feedstock in a manufacturing process creating an end product in Alaska, regardless of the final product's disposition.

• Defines "manufacturing process" as chemically converting or combining gas with other substances to form a valuable compound, explicitly excluding gas processing, treatment, dehydration, fractionation, compression, or liquefaction.

• Repeals existing AS 43.55.011(o) and updates all statutory references throughout the tax code to reference the new election provision in AS 43.55.014 instead.