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Deal Balances Cost-Savings and Industry

Incentives Compromise on HB111 marks successful end to second special session

Saturday, July 15, 2017, Juneau, Alaska – On the final day of this special session a compromise has been met which will save the state $200 mil this year and protect oil investment for years to come. Ending cash payments to oil companies was a key element to HB111 and an easy place to find compromise since the credits have accomplished their goal of encouraging development. In the past 2 years Alaska has seen year over year increases in production for the first time in 3 decades.

“Overall the most important aspect is that Alaska must remain competitive in the global market for oil. This compromise allows Alaska to save money while still retaining incentives for the industry,” said Conference Committee Member Representative Dave Talerico (R-Healy).

The final version of HB111 retroactively ends cash payments to oil companies starting July 1 of this year, allows oil companies to carry forward losses for either 10 or 7 years depending on the field's production and changes the interest rate to 5.25% for money owed to the state.

“Ending cash payments to oil companies was an easy place to find agreement but I’m thankful the area of Net Operating Losses saw compromise,” said Rep. DeLena Johnson (R-Palmer). "Removing the ability to deduct losses would've been dangerous, as it is allowed by every other oil producing regime."

House Republicans are thankful for the tireless work on behalf of our Republican counterparts in the Senate. We are glad to to see compromise on this bill which reinforces our core values of protecting private sector jobs and industry.

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For more information contact Press Secretary Mallory Walser at

Mallory.Walser@akleg.gov

House Republican's Press Office

907-465-3842

Mallory.Walser@akleg.gov

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