March 24, 2023

JUNEAU – The Senate Rules Committee introduced legislation today to fix several flaws
in Alaska’s oil tax structure. Senate Bill 114 would level the playing field by having all oil
producers pay the same corporate income tax rate as corporations at 9.4%. This would only
apply after the first $4 million in annual net income.

Senate Bill 114 will also reduce Alaska’s per barrel oil tax credit system from $8 to $5 and
cap the credit amount equal to their capital expenditures. When the legislature debated the
current per-barrel credit structure in 2013, modeling focused on oil above $90, not on
lower prices like we see today.

“We are looking for common sense fixes to help stabilize our budget process, and this is one
of many proposals that the Senate will evaluate and see how it shapes into closing our fiscal
gap,” said Senate President Gary Stevens (R-Kodiak). “I look forward to the discussion going
forward and finding ways to continue providing basic services to Alaskans.”

“Alaska has a long history with the oil industry, and we share a common goal to have them
stay and continue to succeed. To ensure that, we need good schools, a superior university
system, quality infrastructure, and a PFD. That it is what all Alaskans expect,” said Senator
Bill Wielechowski (D-Anchorage). “These are common sense changes that were acceptable
in the past and will go a long way to allowing us to provide those services that all Alaskans