CS for SB 242(RES) - Geothermal Resource Tax Credits

• Establishes a 30 percent income tax credit for qualified geothermal resource exploration expenditures incurred after the bill's effective date and before July 1, 2018, with unused credits carried forward for up to 20 years.

• Establishes a 30 percent income tax credit for qualified geothermal resource development expenditures incurred after two commercial production wells have been drilled, completed, and flow tested, with unused credits carried forward for up to 20 years from when the resource first generates gross income.

• Allows credits to be transferred to successors in interest of the geothermal resource project and makes credits refundable on an annual basis for exploration expenditures and after the resource generates gross income for development expenditures, subject to appropriation.

• Requires credit recipients to reduce geothermal resource-related costs in utility rate proceedings under AS 42.05.381 by the credit amount and prohibits them from electing exemption from utility rate regulation.

• Defines qualifying expenditures to include surface preparation, drilling, assessment, property acquisition, facility construction, equipment, safety measures, environmental protection, and professional services necessary for geothermal resource exploration and development.