Governor’s Oil Tax Bill Passes House Resources Committee
March 1, 2011, Juneau, Alaska – Governor Sean Parnell today thanked the House Resources Committee for moving House Bill 110, his legislation to restructure oil taxes to spur investment, increase production and create private-sector jobs, out of committee.
The legislation proposes tax credits for drilling wells on the North Slope, provides a lower base tax rate in new fields, and caps the tax progressivity rate on production. HB 110 would stem the decline in Alaskan oil production and grow the state’s economy by making the state more competitive in resource development.
“I appreciate the diligence, commitment and seriousness displayed by the members of the House Resources Committee on this bill,” Governor Parnell said. “Alaska has been a global player in oil for 30 years. But while major exploration has all but ground to a halt here with only one exploratory well this year, extensive exploration is under way outside Alaska in more competitive environments. The state may still provide one sixth of the domestic oil supply, but the volume from existing wells is dropping steadily. We’re at risk of seeing irrevocable production decline, which threatens the pipeline. Our state needs to increase our competitiveness and grow our economy. I look forward to the swift passage of this bill.”
The bill passed by a vote of 7 to 2 and now goes to the House Finance Committee. Governor Parnell remains hopeful that the Senate will proceed soon.