AK HB4002

Reduces nonrefundable tax credits for oil and gas producers in Alaska's oil production tax from prior rates to $4, $3, $2, $1, and zero per barrel depending on monthly average gross value at point of production.

Tax credit of $4 per barrel applies when average gross value is less than $80 per barrel; $3 per barrel for $80-$89.99; $2 per barrel for $90-$99.99; $1 per barrel for $100-$109.99; and zero for $110 or more per barrel.

Eliminates prior tax credit tiers that applied to oil priced at $120 or higher per barrel, removing credits of $3, $2, $1, and zero for progressively higher price thresholds up to $150 per barrel.

Applies only to taxable oil produced north of 68 degrees North latitude after December 31, 2013, and does not reduce a producer's minimum tax liability calculated under AS 43.55.011(f).

Takes effect January 1, 2022.