HB110 Summary: Alaska Oil and Gas Production Tax

• Reduces delinquent tax interest rate from 5 percentage points above Federal Reserve rate to 3 percentage points above rate (or 11 percent maximum, whichever is lesser), compounded quarterly, effective July 1, 2011 for oil and gas produced after December 31, 2012

• Establishes tiered monthly oil and gas production tax rates ranging from 2.5 percent to 25 percent based on production tax value per BTU equivalent barrel, with rates increasing from $30 to above $92.50 per barrel thresholds

• Extends qualified capital expenditure tax credits (20 percent) and well lease expenditure credits (40 percent) deadlines from 2016 to January 1, 2021 for expenditures incurred in state south of 68 degrees North latitude

• Creates single transferable tax credit certificate instead of two-certificate system, allowing immediate use of full credit without delayed application restrictions

• Changes exploration expenditure credit deadline from July 1, 2016 to July 1, 2021, and expands tax disclosure provisions to include detailed credit type and category information