Governor Walker Thanks Legislature for Passing Alaska Economic Recovery Plan

Press Release

Governor Bill Walker thanks the Legislature for passing HB 331, closing out Alaska's remaining financial obligations to the old cashable tax credit program at no additional cost to the state.

Governor Walker requested the bill as part of his Alaska Economic Recovery Plan. It allows Alaska to issue bonds to pay the final debts carried over from the outdated oil tax credit system. Last year, state legislators voted to end the program that offered tax credits to small companies exploring and producing from new oil fields. HB 331 will clear Alaska's balance sheet by bonding to make the remaining payments at no additional cost to the state.

Rather than waiting years for their payments, small oil and gas companies will be paid their credits now at a discounted rate. Alaska will use the savings to pay the interest on the bonds that will be used to close the debts immediately. HB 331 means promises made under the old oil tax credit system will be fulfilled fairly, efficiently, and at no extra cost to Alaskans. Alaska's three largest oil and gas companies were not eligible to receive the credits.

"I'm pleased the Legislature is fulfilling Alaska's past promises to pay tax credits to small independent explorers in exchange for investing in our state. This will close out old debts to oil and gas entities, help companies invest in their operations, and put Alaskans to work," said Governor Walker.

He thanked Representative Jason Grenn and Senator Peter Micciche, who carried HB 331 in the House and Senate.

Source