Governor Signs Gas Exploration Tax Credit Legislation
May 10, 2010, Kenai, Alaska – Governor Sean Parnell today signed legislation that supports and encourages Cook Inlet natural gas development.Senate Bill 309, sponsored by Senator Lesil McGuire and House Speaker Mike Chenault, increases the corporate income tax credits for capital investments in Cook Inlet gas production from 10 percent to 25 percent and allows offsets up to 75 percent of the tax liability, up from the current 50 percent. “This legislation provides powerful incentives for explorers and producers to continue to invest additional capital in Cook Inlet,” Governor Parnell said. “That investment not only will build gas supply in Southcentral, but it also means more jobs in the region.” The legislation also includes two elements from Governor Parnell’s tax credit bill to stimulate petroleum exploration and production on the North Slope. SB 309 gives the Department of Natural Resources the ability to waive interest on production tax liabilities that arise from the retroactive application of regulations. It also repeals the requirement that small companies make new investments in order to be able to get cash from the state for their credits. This change puts smaller companies on an equitable footing with large companies that have current tax liabilities. At the bill signing ceremony in Kenai, Governor Parnell was joined by Senator McGuire, Speaker Chenault, Representative Kurt Olson and Senator Tom Wagoner.