HB 328 Summary

• Creates a new Alaska Statute 43.21 establishing a separate oil and gas corporate income tax system applicable to corporations engaged in oil or gas production or pipeline transportation in the state.

• Taxes oil and gas production based on gross value at the point of production minus deductible expenses including royalties, production taxes, direct operating costs, depreciation, exploration costs, interest expense, and overhead attributable to Alaska operations.

• Pipeline transportation income determined by Federal Energy Regulatory Commission reporting standards with adjustments for interest and administrative expenses, or estimated equivalents for non-FERC regulated pipelines.

• Allows corporations to apply certain credits under AS 43.20.043, 43.20.044, and 43.20.046 against the new tax, provided the same credit has not been claimed against other oil and gas taxes.

• Applies to taxable income earned or received after December 31, 2012, with an effective date of January 1, 2013, and directs the Department of Revenue to adopt implementing regulations and provide transition rules to prevent double taxation.