SB 23 Summary

• Exempts qualified small businesses from Alaska corporate income tax beginning January 1, 2013, if they meet federal requirements under 26 U.S.C. 1202(e) as of January 1, 2012

• Creates liquefied natural gas (LNG) storage facility incentives including 10-year lease payment exemptions on state land and up to $15 million tax credits for facilities commencing operation before January 1, 2020

• Establishes reduced oil and gas production tax at 4 percent for new production outside Cook Inlet and north of 68 degrees North latitude for seven years beginning after December 31, 2012

• Transfers film office from Department of Commerce to Department of Revenue and establishes Alaska Film Incentive Review Commission to oversee film production tax credits capped at $200 million for productions qualified after June 30, 2013

• Provides exploration tax credits for oil and gas drilling and seismic projects, with up to $25 million for drilling and $7.5 million for seismic work in designated exploration areas