AK HB351

Amends AS 43.55.024(g) to allow tax credits under subsection (i) in addition to credits under (c) to be applied against oil and gas production tax liability without reducing it below zero.

Creates a new tax credit for producers with qualifying leases or properties where tax liability remains positive after applying credits under (a) or (c) of the section.

Credit applies for the calendar year production begins in paying quantities and for the nine following calendar years.

Credit amount equals 25 percent of annual production tax value multiplied by the "new production credit factor" (ratio of new production to total producer production) for type (1) tax liability, or tax due multiplied by the new production credit factor for type (2) liability.

"Qualifying lease or property" means any lease or property that did not have oil and gas production in paying quantities before 2012.