HB 247 Summary

• Modifies Alaska oil and gas production tax structure including changes to tax rates, credits, and payment requirements effective January 1, 2017 (with some provisions phased in through 2022)

• Reduces capital expenditure tax credits from 20 percent to 10 percent for qualified expenditures and adjusts carried-forward loss credits based on geographic location and timing of lease expenditures

• Changes interest rates on delinquent taxes under AS 43.55 to 7 percentage points above federal rate for first 3 years after delinquency, then 0 percent thereafter (effective January 1, 2017)

• Establishes $250,000 surety bond or cash deposit requirement for oil and gas business license applicants to ensure payment of taxes, contributions, and creditor claims

• Modifies tax credit certificate purchase procedures, caps annual purchases at $70 million per person, and requires preference allocation based on percentage of resident workers in applicant's workforce