AK HB5005

Changes delinquent tax interest rates: reduces rate from 5 percentage points above Federal Reserve rate (or 11% minimum) to 3 percentage points for January 1, 2014 through December 31, 2016; increases to 5 percentage points for first four years after delinquency beginning January 1, 2017

Extends oil and gas production tax minimum rates for North Slope properties from January 1, 2017 through December 31, 2021, with rates ranging from 0-5% based on oil prices

Modifies installment payment calculations for oil and gas producers: increases payment percentage from 25% to 35% for most production beginning January 1, 2014, and adds 5% minimum tax rate option for certain North Slope leases

Adds carried-forward annual loss tax credit of 15% for expenditures incurred on or after January 1, 2017 and before January 1, 2018 for North Slope exploration and development, with no credits allowed after January 1, 2018

Lowers the production threshold for tax credit certificate purchases from 50,000 to 15,000 BTU equivalent barrels and limits municipal entity tax credits to fraction equal to production sold to third parties