AK SB164

Creates a new tax credit for oil and gas exploration wells drilled in the Kotzebue basin or Selawik basin, allowing the first three persons to claim credits of 100%, 90%, and 80% of exploration expenditures respectively, capped at $30 million, $27 million, and $24 million.

Requires wells to be drilled to a depth greater than 2,000 feet, or to a shallower target depth if pre-authorized by the commissioner of natural resources, with work performed after December 31, 2011.

Allows persons and their affiliates to qualify for multiple drilling credits under this subsection, unlike similar Cook Inlet provisions that limit credits to one well per person.

Requires 50 percent repayment of credits to the state in equal monthly installments over 10 years if the exploration well results in sustained production of oil or gas.

Takes effect immediately upon enactment.