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With Alaska oil production declining at roughly six percent each year, Governor Parnell saw a brighter future for Alaska. He envisioned a future of more oil production, more opportunity, and more economic growth that generations of Alaskans would benefit from. He sought to spur an Alaskan comeback to attract new investment to Alaska’s oil patch, and also rebalance the tax credit system to ensure Alaska’s treasury was protected at low oil prices.

Governor Parnell signed the More Alaska Production Act into law on May 21, 2013.
The MAP Act uses these four guiding principles:

It is Fair to present and future generations of Alaskans.

  • Increase in base rate provides fair and stable revenue stream for Alaskans.
  • Cuts the billion dollar risk to Alaskans’ treasury by reducing capital tax credit payments.
  • Creates real minimum tax on legacy oil production.

It Drives New Production, growing economic opportunity for Alaskans.

  • Ties tax relief to new oil production, not merely to an increase in company spending.
  • The MAP Act incentivizes more production with a per barrel credit and a Gross Revenue Exclusion (GRE) for new oil.

It is Simple with a Balanced fiscal impact across all oil prices.

  • Generates more revenues for the State treasury at low oil prices, while keeping Alaska competitive at high prices.
  • Tax credit system is now based on the production of oil, not simply on company spending.

It is Competitive, benefiting Alaskans for the Long Term.

  • The MAP Act already benefits Alaskans with recently announced new investments.
  • Eliminates excessive progressivity, making Alaska competitive with other oil-producing jurisdictions.
  • Investments today will lead to more production, jobs and revenues tomorrow, benefiting generations to come.


Alaska's Oil Potential

 

What People Are Saying

The Details

What the MAP Act Does
  1. Increases base tax rate to 35%.
  2. Tax benefit for new production: Gross Revenue Exclusion (GRE).
  3. $5 per barrel tax credit for GRE oil produced.
  4. Sliding scale per barrel credit for all other oil produced.
  5. Extends Middle Earth tax credits from 2016 to 2022.
  6. Creates an Oil and Gas Competitiveness Review Board.
  7. Establishes a 10% Corporate Income Tax Credit for in-state manufacturing/modification.

News Coverage

ConocoPhillips Adding New Drill Rig To Kuparak Oil Field
Pioneer sells Alaska holdings for $550M
Repsol plans: three more wells, three more rigs
BP Alaska president: Oil tax bill makes several projects possible
New BP president outlines aggressive investment plans
Parnell Looks To Europe For Insight On Oil Tax Policy
BP to spend $1 billion in Alaskaís North Slope
Compass: Alaska's oil comeback is under way
Parnell Signs Bills on Oil Tax, Budgets
Industry reps: Tax overhaul an improvement
Oil execs say tax bill is 'game changer,' make no promises
House Resources Committee advances oil tax bill
Interview: Gov. Parnell Talks Oil Tax Overhaul
Oil revenue fuels intense fighting among Alaska lawmakers
Alaska House getís its turn on oil tax bill
House Resources panel ready to take up oil taxes
Oil tax reform: Opportunity for Alaskans
Alaska Senate poised to begin debate on oil taxes
Point-Counterpoint: Ignoring production decline threatens Alaska's future
In relation to oil
New oil tax bill emerges in Senate with smaller break for new production
Consultant says oil tax proposal 'competitive'
Senate panel hears from industry on oil bill
Oil tax rewrite comparable impact to Parnell's
Alaska legislative panel unveils oil tax rewrite
Compass: Alaska needs governor's oil tax overhaul
Smaller companies testify on Parnell's oil tax plan
Fixing ACES
Legislature marks 30 days with narrow agenda on oil taxes
Alaska Has Its Own Fiscal Cliff
Parnell calls for action on gas, oil concepts
Senate Committee Advances Gov. Parnell’s Bill Cutting Oil Taxes
My Turn: Education and oil tax reform: a false choice
Alaska Senate committee to take up oil tax bill
Parnell: Focus on progressivity 'takes things out of context'
Committees start work on Parnell’s oil tax reform bill
Discussion Continues over Governor Parnell's Oil Tax Reform
Empire Editorial: Reform must work for all sides or it won't work at all
Econ One: Parnell’s bill would put Alaska back in running, benefit new players
AJOC EDITORIAL: Session gets off to fast start
Public Comments On Gov. Parnellís Oil Tax Cut Proposal
Parnell talks oil, other issues
Governor defends his new oil tax measure from Democratic critics
Alaska Gov. Parnell issuing weekly messages on oil
Parnell pushes gas pipeline, oil tax cuts in his fourth State of the State address
Parnell pitches oil tax bill
My Turn: Tax reform must focus on increasing Alaska's economy
Compass: Governor lays out principles of oil tax reform

See More >>

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More Alaska Production Act Overview More Alaska Production Act Card


More Alaska Production Act: It's Working