HB 100 Summary

• Establishes a net income tax credit for taxpayers with ownership interests in in-state processing facilities that manufacture urea, ammonia, or gas-to-liquid products, equal to the percentage of royalty paid on natural gas delivered to the facility matching the taxpayer's ownership percentage.

• Permits the Commissioner of Natural Resources to accept contract prices between lessees and in-state processing facilities as the valuation for the state's royalty share of natural gas, provided the commissioner finds it in the state's best interest and the price is not unreasonably low based on clear and convincing evidence.

• Requires agreements for royalty valuation and tax credits to include provisions for hiring qualified Alaska residents, establishing state hiring facilities, and utilizing state job centers and labor exchange systems to the maximum extent permitted by law.

• Applies the tax credit to natural gas royalties delivered for qualifying purposes on or after July 1, 2017, and before January 1, 2024, with the credit provision repealing on the latter date.

• Takes effect July 1, 2017, except for the repeal provision which takes effect January 1, 2024.