AK HB111

Changes oil and gas production tax credit provisions, including allowing exploration tax credits earned after July 1, 2016 to be applied against corporate income tax under AS 43.20.

Modifies interest rates on delinquent production taxes under AS 43.55 from 7 percent above the federal rate to 5.25 percent above the federal rate effective January 1, 2018.

Establishes "carried-forward annual loss" concept allowing producers to deduct lease expenditures incurred in prior calendar years for exploration, development, or production of oil and gas outside the Cook Inlet sedimentary basin.

Repeals the oil and gas tax credit fund and eliminates cash payment provisions for tax credit certificates for credits earned after July 1, 2017.

Creates a legislative working group to analyze the state's fiscal regime for oil and gas, review tax structure and rates, and develop recommendations for a comprehensive fiscal regime.