HB 252 Summary

• Exempts Alaska corporations that are qualified small businesses from corporate income tax for the first 10 tax years beginning after December 31, 2012, or the first 10 years the corporation has taxable income.

• Transfers film office from Department of Commerce to Department of Revenue and establishes the Alaska Film Incentive Review Commission to oversee the film production tax credit program.

• Increases film production tax credit cap from $100 million to $200 million for productions qualified after June 30, 2013, and extends transferable tax credit use period from 3 to 6 years.

• Reduces tax rate on new oil and gas production outside Cook Inlet sedimentary basin and south of 68 degrees North latitude to 4 percent for the first 7 years of commercial production, beginning after December 31, 2012.

• Creates credits against oil and gas production tax for seismic exploration and certain oil/gas exploration drilling costs, with specific caps and geographic eligibility requirements.