Representative Adam Wool

Share on Facebook  JULY 17, 2017

Compromise Achieved on Oil Tax Credits

Dear Friends, Neighbors, and fellow Fairbanksans:


On July 15th, near the end of the special session, the Legislature passed a compromise version of the oil and gas tax credits bill (HB111). The bill passed the House 33-6 and the Senate 18-0. After weeks of negotiations, this does represent a genuine compromise.

Elements of the oil tax credit compromise:

  • Ends cash payments for oil and gas tax credits retroactive to July 1, 2017, saving the state about $200 million per year.
  • Companies can claim tax deductions instead of cash, but they only receive the deductions once a project starts producing oil.
  • After 7 years, if oil is produced (and 10 years if it isn’t) the value of deductions decreases 10% per year.
  • Creates an interim working group to continue examining the state’s oil tax system.

What’s next? The Capital Budget and a Fiscal Plan


Now it is likely the Governor will call the Legislature back into Special Session to deal with the capital budget that funds public construction projects across the state. This is needed soon to leverage more than $1 billion in federal funds in a timely fashion and not delay construction projects any further. I am hopeful the Legislature will pass a capital budget before the end of July.

Fiscal Plan
The need for a fiscal plan, of course, remains. Passage of HB 111 was important, but a relatively small piece of solving our fiscal crisis. The Legislature needs to come together, this year, on a fiscal plan that provides long-term assurance to Alaskans, but also certainty to rating agencies and the investment community that Alaska’s economy is on secure financial footing. The changes to the oil tax credit system makes me hopeful the Legislature will be able to act soon on a compromise, and create a sustainable fiscal plan for Alaska.
signed: Adam Wool
Representative Adam Wool

 

  MY OFFICE

SESSION
State Capitol Bldg. Room 420
Juneau, AK 99801
P (907) 465-4976

INTERIM
1292 Sadler Way
(AlaskaUSA Credit Building)
Fairbanks, AK 99701
P (907) 452-6084

Rep.Adam.Wool@akleg.gov
http://www.repadamwool.com/

Rob Earl - Legislative Aide
+1 (907) 465-6959
Rob.Earl@akleg.gov
Laura Stidolph - Legislative Aide
+1 (907) 465-6879
Ashley.Strauch@akleg.gov
Ashley Strauch - Legislative Aide
+1 (907) 465-4976
Laura.Stidolph@akleg.gov

  FAIRBANKS - DISTRICT 5

Geist, College, Chena Ridge, Chena Pump, Cripple Creek, UAF Campus, Richardson, and Parks Highway.
 

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675 7th Avenue, Suite H5
Fairbanks, AK 99701-4596
T (907) 451-2920 F (907) 451-2858
EMAIL: Governor Bill Walker

STATE of ALASKA
http://alaska.gov/

State Info (907) 269-5111

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