AK HB326

Changes oil and gas production tax minimum rates north of 68 degrees North latitude, increasing rates from 0-4% to 5-10% for oil and gas produced on and after January 1, 2022, based on Alaska North Slope crude oil prices.

Establishes a new minimum tax calculation under AS 43.55.011(q) that takes effect before January 1, 2022, with rates of 20% or higher depending on oil prices, capped at 50%.

Creates a heavy oil production enhancement credit of 25% of research and development expenditures (up to $2,500,000) for new technologies aimed at producing or enhancing heavy oil production.

Limits application of existing tax credits (AS 43.55.023, 43.55.024, 43.55.025) so they cannot reduce installment payments below the minimum tax amounts and caps total annual credits.

Modifies oil and gas tax credit fund to include payments for the new heavy oil research credit and adjusts installment payment calculation schedules for different production periods through 2022.