According to the Spring Revenue Forecast by the Department of Revenue, the State of Alaska
will have a $1 billion shortfall next year. We are facing a fiscal crisis. Senate Bill 114, the Oil
Revenue Reform bill, represents a new bi-partisan approach to fix two major oil tax loopholes.
These Oil tax loopholes have drained our savings and cost the state more than $10 billion since
2014 with production and investment still declining. Because of this, we have seen a decline in
almost every institution in the state. We have experienced population loss for the first time in
decades, and it feels like many Alaskans have lost the hope for the future that we once enjoyed
in the last frontier.
That is why Senate leadership has partnered with the Dunleavy Administration and community
leaders around Alaska to advance the ideas in Senate Bill 114. Senate Bill 114, the Oil Revenue
Reform act, will close the loopholes that have short-changed our state while incentivizing $100s
of Millions of dollars in new investment on the North Slope. It is a common-sense compromise
bill that will help Alaska avoid bankruptcy while paving the way for prosperity our state
deserves for the future.
We are asking for an all-hands-on deck approach to tackle this monumental fiscal challenge.
That’s why we need your help. If you support education, large dividend checks, the Ferry
System, and a prosperous economy, please make your voice heard supporting Senate Bill 114.
We cannot let another year go by while we balance the budget off the backs of Alaskans
instead of closing these loopholes that has caused low dividends, and reduced community
funding our state these last 10 years.
No more blank checks. Invest in Alaska and we will invest in you.
Here are the main two loopholes Senate Bill 114 fixes:
S-Corp. Levels the playing field by bringing S-Corps into the same tax rate as other corporations.
This will incentivize oil producers who are S-corps to spend more money on the North Slope to
achieve a lower effective tax rate.
Per Barrel Credit. Lowers the amount from 8-5 and ties it to investment. This will incentivize
up to $350 million dollars of new investment on the North Slope by reimbursing industry 100%
of the costs of building a new project.t Goes Here
~Senate President Gary Stevens (R-Kodiak)
~Senator Bill Wielechowski (D-Anchorage)