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Public testimony TODAY on SB 21!

MAKE ALASKA COMPETITIVE COALITION MAR. 6, 2013

Committee substitute moves to Senate Finance

Resource Committee members Sen. Peter Micciche, left, and Sen. Click Bishop listen to testimony

Following its commitment to Oil Tax Reform Policy, the Senate continues to advance the oil tax bill. A committee substitute (CS) for Gov. Sean Parnell’s oil tax bill moved from Senate Resources to Senate Finance on Feb. 27.

The CS imposes a higher base tax rate, a per-barrel tax credit in lieu of the 20 percent capital investment tax credit now in the law, a “Gross Revenue Exclusion” for new oil and changes to the current exploration tax credits to make them more flexible.

“I applaud the committee for their commitment to focus tax changes on new production for Alaskans,” Parnell said. “The committee’s focus on creating a predictable tax system that encourages investment and new production is one that all Alaskans will benefit from. We will continue to assess their changes and look forward to evaluating the balance it strikes in the Senate Finance Committee.”

Resources Co-Chair Cathy Giessel said the changes to SB 21 were the result of the TAPS Throughput Committee’s letter of intent, individual committee members efforts and testimony from stakeholders.

Click here for more information on a “Gross Revenue Exclusion”.

Or here for the entire bill.

Senate Finance taking public comment on SB 21 the next two weeks

The Senate Finance Committee will be taking public testimony from Alaskans on SB 21:

Wed., March 6,    3 – 5 p.m.
Tues., March 12, 4 – 6 p.m
.

Testimony will be taken statewide and the preference is that you testify in person at your local Legislative Information Office (LIO).

Comments should be limited to two minutes.

Click here to find the LIO nearest you.


Tax break jumpstarts oil and gas investment in UK

This short film highlights the significant contribution of the UK oil and gas industry to British jobs, skills, technology and energy security.

If you question the connection between investment and taxes, look no farther than the North Sea.

Following the introduction of tax changes to encourage growth in the United Kingdom (UK) oil and gas sector, the industry has responded with the highest investment in more than 30 years. As a result, thousands of jobs are now being created across Britain and the “production of UK oil and gas and resulting tax revenues can now confidently be expected to rise over the coming years,” according to Oil & Gas UK, which published its 2013 Activity Survey last week.

The Activity Survey shows a diverse mix of investment, ranging from projects of less than £50 million ($75,485,000.00 US) to some of more than a billion pounds. Total investment soared to £11.4 billion ($17,210,580,000.00 US) in 2012 and is expected to rise to at least £13 billion ($19,626,100,000.00 US) this year.

Investments totaling almost £100 billion ($150,970,000,000.00 US) are now in companies’ plans.

“Here is some really good news for the UK,” said Malcolm Webb, chief executive, Oil & Gas UK. “After two disappointing years brought about by tax uncertainty and consequently low investment, the UK continental shelf is now benefitting from record investment in new developments and in existing assets and infrastructure, the strongest for more than three decades. The recent introduction of targeted tax allowances to promote the development of a range of difficult projects, coupled with the government’s ground-breaking commitment to provide certainty on decommissioning tax relief, has prompted global companies and independent businesses alike to take another look at the UK as an investment destination and resulted in a new wave of investment.”

The number of projects submitted to the Department of Energy and Climate Change, and given development approval, almost doubled between 2011 and 2022 to 33, valued at £13.4 billion ($20,229,980,000,000.00 US).

Exploration grew dramatically from 21 wells per year prior to the tax cut to 130 projected over the next three years.


  Memorable quotes
 

“If you are selling something, and you are not competitive, your customers will go somewhere else. That’s exactly what has happened with the oil industry in Alaska.”

Cynthia Henry, Fairbanks businesswoman

“What we [the state] take can't be the goal here. Because we can ride that golden goose and eat all its eggs and then kill it. We have a problem here and it seems to be related to our tax policies in the past.”

Sen. Pete Kelly

 

“Finding a long-term solution to an economically-beneficial tax policy is critically important to Alaskans – especially those of us who, like many of you, have children and grandchildren here who we hope will be able to make their homes and history in Alaska.”

Gail Phillips, Former Speaker of the House

 
 

Catch us on the air

MACC is airing two new radio spots "Imagine Family Gathering" and "Imagine Home Loan" this week. Click here to hear.


MACC provides speakers to meet your needs

MACC can dispatch speakers to all parts of Alaska to talk to groups and employees about the need to meaningfully reform Alaska’s oil taxes. To schedule a presentation, contact Julianne at MSI Communications.

Action is needed now

With the legislative session in full-swing, action is needed now to move oil tax reform forward. Call your legislator, call in to talk shows and write letters to the editor and encourage moving oil tax reform forward now.

Here are sample letters to the editor and information on how to submit.

Here is information on how to call into talk radio shows.


Like MACC on Facebook

Make sure to “like” us on Facebook for daily updates. We encourage you to join the conversation.


This week’s calendar - Week of 3/1/13 – 3/8/13

Wednesday, Mar. 6
9 a.m. – Senate Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
3 – 5 p.m. – PUBLIC TESTIMONY, SB21, Gavel-to-Gavel alaskalegislature.tv
 

Thursday & Friday, Mar 7 – 8
Energy Council Annual Conference, Washington D.C.

Monday, Mar. 11
9 a.m. – Senate Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

Tuesday, Mar. 12
9 a.m. – Senate Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
4 – 6 p.m. – PUBLIC TESTIMONY, SB21, Gavel-to-Gavel or alaskalegislature.tv

Wednesday, Mar. 13
9 a.m. – Senate Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
Thursday, Mar. 14
9 a.m. – Senate Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
Friday, Mar. 15
9 a.m. – Senate Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
 
Make Alaska Competitive Coalition
3501 Denali Street #202, Anchorage, AK 99503 : 907.569.7070 : © 2013 Make Alaska Competitive Coalition
MACC accepts no money from oil producers.

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