News from the Alaska State Legislature, the Office of Senator Giessel
For Immediate Release: May 11, 2018
Senate Approves Program to Pay Outstanding Tax Credit Debt
JUNEAU – The Alaska Senate today approved a program to resolve nearly $1 billion owed to small oil and gas companies and reinvigorate work in the state’s oil patch.
“Refinancing the debt we owe in tax credits will un-freeze global capital for Alaska projects across economic sectors,” said Sen. Cathy Giessel (R-Anchorage). “We look forward to these companies resuming exploration and development that puts Alaskans to work and supports Alaska’s revenue stream.”
Alaska offered the incentives to attract small, new companies to the state’s oil and gas fields. For nearly a decade, the Legislature paid the tax credit incentives as they came due. An oil price collapse and ensuing state deficits reduced payments to the required minimum, which were further reduced by veto. Companies were unable to meet financial obligations to lenders. Capital markets froze for smaller oil and gas businesses, stalling important work in Cook Inlet and the North Slope that delivers energy to Alaskans, state revenue, and good-paying jobs.
“This legislation will help the state satisfy a significant debt we owe the small, new companies who answered our call to do business in Alaska’s oil fields,” said Sen. Peter Micciche (R-Soldotna). “They came, they did their part. Today the Senate has ensured the state will follow through on its commitment at a discounted cost to the state.”
The Legislature closed out the tax credit incentive program in 2017. This year, the Walker administration proposed issuing bonds to generate funds to pay off credits earned to date, allowing the state to pay the debt up-front instead of over time. Participating companies would receive a slight value reduction, which would cover the state’s borrowing costs.
“Somehow it became OK for Alaska to not pay its bills a few years ago,” said Senate President Pete Kelly (R-Fairbanks). “Even though I am not thrilled with this mechanism, it allows us to get back to work, stop some of the layoffs and pay what we owe.”
HB 331 passed the Senate by a vote of 14 to 5 and the House 23 to 15, for a combined vote of 37 to 20. The bill now goes to the governor’s desk to be signed into law.
For more information, contact Senate Majority Press Secretary Daniel McDonald at (907) 465-4066.
News & Videos more >
ANCHORAGE – A bill to protect Alaskans from the adverse health effects of secondhand smoke in the workplace was signed into law this week by Gov. Bill Walker....
ANCHORAGE – Today, Sen. Bert Stedman (R-Sitka), chairman of the Legislative Budget & Audit Committee, sent the Department of Law a criminal referral for the unauthorized leak of a...
ANCHORAGE – Sen. Bert Stedman (R-Sitka) today announced he will serve on the National Petroleum Council (NPC) following his appointment to the board by the Secretary of the Department...
ANCHORAGE – A bill to reduce the state’s regulatory burden on barbers, hairdressers, hair braiders and those with student loans was signed into law today by Gov. Bill Walker....
JUNEAU – The Alaska Senate today adjourned the second session of the 30th Alaska Legislature, sine die.
JUNEAU – The Alaska Legislature today passed a bill to restore access rights to private homesteaded property owners in the James Dalton Highway corridor.
JUNEAU – The Alaska Legislature today passed legislation providing students across Alaska access to the best curriculum in the world.
JUNEAU – The Alaska Legislature today took another step toward clean and affordable natural gas in Fairbanks and North Pole with the passage of legislation extending the bonding...
JUNEAU – The Alaska Legislature today concurred with the final version of the state operating budget for Fiscal Year 2019, totaling $3.1 billion in unrestricted general funds (UGF) for...
JUNEAU – The Alaska Senate today approved a program to resolve nearly $1 billion owed to small oil and gas companies and reinvigorate work in the state’s oil patch....
Find your Senator full map
- Chugiak/Peters Creek
- Eagle River
- Jewel Lake, Kincaid, Turnagain, Lake Hood, Sand Lake, Spenard, Dimond, Campbell Lake
- Midtown, Dimond, Huffman, Klatt, Southport, Bayshore, Oceanview
- Huffman, O'Malley, Abbott, Loop, Independence Park, East Dowling
- Northeast Anchorage, Anchorage Hillside, Indian, Bird, Girdwood and Portage
- Downtown, Airport Heights, Fairview, Government Hill, Mountain View, Russian Jack, South Addition
- Spenard, Midtown, UMed
- Muldoon, JBER, College Gate, Nunaka Valley, Wonder Park
- Palmer, Butte, Eklutna, Fairview, Lazy Mountain Knik, Gateway
- Wasilla, Meadow Lakes, Knik Big Lake, Point MacKenzie, Goose Bay, North Fairview
- Mat-Su, Delta Junction, Valdez, Copper River Valley, Talkeetna, Valdez
- North Pole, Farmers Loop
- UAF & University West, Chena Ridge, Kenny Lake, Tok, Copper Center & Tanana
- Adak, Bethel, Cold Bay, Cantwell, King Cove, Nenana, Hooper Bay, Sand Point & Unalaska
- Barrow, Nome, Kotzebue, Northeast + Northwest Alaska