Passage of Oil Tax Credit Bill ends second special legislative session

    Juneau, Alaska (KINY) - The second special session of the State Legislature adjourned late Saturday night on the 30th and last day of the special session after a rewrite of the oil tax credit law was approved.

    Differences between Senate and House versions of House Bill 11 were hammered out in a conference committee.   

    It's estimated that the measure will save the state nearly $200 million per year within three years.  It ends cash credits statewide effect July 1, 2017

    The compromise proposal was approved in an 18-0 vote in the Senate and a 33-6 vote in the House.

    The Alaska Oil and Gas Association condemned the bill, claiming that it would keep oil and gas drilling operations away in the future.

    Governor Bill Walker welcomed the action saying that it is a meaningful step to shore up the state's financial situation, but added the work is not yet finished.

    The state has a deficit of over $2 billion per year while its Constitutional Budget Reserve will have only $2 billion left at the end of the current fiscal year. Lawmakers have been looking at cutting spending, raising taxes or drawing from the Alaska Permanent Fund to solve the issue.  One key element left hanging is a broad based tax.  The Senate Majority has balked at approving a state income or sales tax.

     

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