SB 309 Summary

• Increases exploration and development incentive tax credit for gas operators from 10 percent to 25 percent for tax years beginning after December 31, 2009, and allows credits to be claimed on timely filed returns with non-irrevocable elections

• Raises the maximum annual tax credit limit from 50 percent to 75 percent of total tax liability under AS 43.20.043(c)

• Establishes new Cook Inlet exploration well credits providing 100 percent, 90 percent, or 80 percent credits (up to $25, $22.5, or $20 million respectively) for the first three unaffiliated entities drilling offshore pre-Tertiary zone wells using jack-up rigs, with 50 percent repayment obligation if production is achieved

• Allows the Department of Revenue to waive interest on underpayments and adjust interest on overpayments when retroactive regulation changes affect oil and gas production tax obligations, with conditions based on good faith tax estimation

• Extends the deadline for claiming carryover gas exploration and development tax credits from December 31, 2017 to December 31, 2020