Today Governor Mike Dunleavy transmitted to the Legislature a compromise bill establishing the tax and oversight framework for the Alaska LNG project which can clear the way for the project to begin securing financing.
The bill is identical to the Conference Committee version of HB 381 except for three changes:
- The governor’s compromise keeps an S corporation corporate income tax, but at a lower, flat rate of 2%.
- The effective date of the S corp corporate income tax is delayed to January 1, 2030, which is one year later than the Conference Committee version, or upon first commercial gas through the pipeline.
- The bill removes a provision that could have reduced state aid for education to boroughs receiving gas line tax revenue.
The Governor’s compromise legislation does not contain any new concepts. The legislature has debated and voted on previous versions of the bill that contain each provision in the compromise legislation. By introducing the bill now, Governor Dunleavy has given the legislature ample time to review the changes to the bill before reconvening in Juneau on August 20.
“I have never been in favor of new taxes on Alaska’s producers, and I still am not,” said Governor Mike Dunleavy. “This bill is a compromise that removes a significant barrier to moving the gas line forward. Given the robust discussion and work that has already gone into this bill, I am hopeful the legislature can swiftly pass a bill that will help the AK LNG project get the financing it needs to start construction as soon as possible.”
Click here to view the legislation.
