AK HB280

Establishes a new tax credit for the first three persons drilling exploration wells in the Kotzebue basin or Selawik basin, with credits of 100%, 90%, and 80% of exploration expenditures respectively, capped at $30 million, $27 million, and $24 million.

Wells must be drilled to a depth greater than 2,000 feet, or to a lesser authorized depth, with work performed after December 31, 2011.

If a credited exploration well results in sustained production, 50% of the credit must be repaid to the department in equal monthly installments over 10 years, beginning 60 days after production starts.

Allows a person or affiliate to qualify for multiple drilling credits under this provision, unlike the Cook Inlet exploration well credit which limits one credit per person.

Amends existing tax credit provisions by adding definitions for "jack-up rig," "reservoir," and "sustained production" and takes effect immediately.