SB 201 Summary

• Establishes a new oil and gas corporate income tax under AS 43.21 applicable to corporations deriving income from oil or gas production or pipeline transportation in Alaska, effective for taxable income earned after December 31, 2012.

• Defines taxable income from oil and gas production as gross value at point of production less specified deductions including royalties, production taxes, direct operating costs, depreciation, lease acquisition costs, interest expense, and exploration expenses.

• Determines taxable income from pipeline transportation based on amounts reported or required to be reported to the Federal Energy Regulatory Commission, less portions of interest and overhead expenses attributable to in-state operations.

• Allows credits under AS 43.20.043, 43.20.044, and 43.20.046 to be applied against the new tax, provided the same expenditure has not been claimed under other oil and gas taxes.

• Repeals AS 43.20.072 and requires the Department of Revenue to adopt implementing regulations and provide transition rules to prevent double taxation when corporations shift from AS 43.20 to AS 43.21 taxation.