HB 231 - Alaska Oil Production Enhancement Act

• Creates a new production facility cost credit equal to 50 percent of qualified expenditures incurred after discovery but before commencement of production, applicable for two years following production startup and limited to leases not previously producing as of December 31, 2010.

• Modifies exploration tax credits to increase rates from tiered percentages (30-40 percent) to a flat 50 percent for most expenditures, with higher rates (80-100 percent) available for certain exploration activities, extending the eligibility period from July 1, 2016 to July 1, 2021.

• Revises well lease expenditure credits to change the calculation method from single-year limits to a 40 percent credit on expenditures exceeding average annual spending from 2008-2010, applicable through January 1, 2020.

• Implements a tax benefit percentage cap of 85 percent for certain capital and exploration expenditures that are also lease expenditures, reducing the credit amount to prevent excessive combined tax benefits.

• Establishes that credits cannot be double-claimed across different tax credit provisions and allows the oil and gas tax credit fund to purchase unused production facility credits as cash payments when certain conditions are met.