AK SB203

Amends AS 42.05.990(4) to classify gas storage facilities as public utilities, specifically including tanks, depleted reservoirs, and injection wells for storing Cook Inlet gas designated for in-state sale and delivery if the expenditure qualified for a tax credit under AS 43.20.046.

Creates a new tax credit under AS 43.20.046 allowing owners of Cook Inlet gas storage facilities to claim 20 percent of qualified capital investments against state tax liability for tax years beginning after December 31, 2009.

Qualified capital investments include expenditures under binding agreements entered into between January 1, 2010 and January 1, 2013 for purchasing, constructing, or acquiring storage facilities and equipment, plus costs of cushion gas acquired during the same period.

Limits the annual credit to 50 percent of total tax liability, allows unused credits to carry forward for up to five following tax years, and requires the facility to be ready to receive gas before claiming the credit.

Taxpayers forfeit the credit if they dispose of the investment, take it out of service, or fail to use the facility primarily for storing Cook Inlet gas for in-state sale and delivery.