The Senate Resources Committee on Friday (February 22) took up the first Committee Substitute (CS) for SB 21. The working draft the Committee reviewed is available here. A webcast of the hearing is available here. The slide decks used by the consultants in analyzing the proposed change in tax rates are in the hearing folder, available here.
The CS proposes modifications of the Governor’s original bill primarily in five areas . Those areas are:
- Tax rate
- Scope of the Gross Revenue Exclusion (GRE)
- Establishes an “Oil & Gas Competitiveness Review Board”
- Scope of the Exploration Credit
- Establishes a “Qualified oil and gas industry service expenditure credit” to Alaska corporate income tax
I took some time to work through the proposed changes over the weekend and captured my initial thoughts on a slide deck available here.