0:45
Dan Stickel
110:14 - 111:00
"the depreciation offsets— when we're doing an analysis of potential midstream corporate income tax, the depreciation offsets a lot of that income for the first several years, which is why I think 2036 was the first year that we would project a positive corporate income tax from the developer under the project. They also earn— to the extent that they have losses during construction, they could earn a net operating loss that could be carried forward. That net operating loss can offset up to 80% of a tax liability. And so once we get to the 2036 timeframe, we assume that the developer would still have those net operating losses until sometime in the 2040s."
“the depreciation offsets— when we're doing an analysis of potential midstream corporate income tax, the depreciation offsets a lot of that income for the first several years, which is why I think 2036 was the first year that we would project a positive corporate income tax from the developer under the project. They also earn— to the extent that they have losses during construction, they could earn a net operating loss that could be carried forward. That net operating loss can offset up to 80% of a tax liability. And so once we get to the 2036 timeframe, we assume that the developer would still have those net operating losses until sometime in the 2040s.”
- Speaker
- Dan Stickel
- Timestamp
- 110:14 – 111:00
- Community
- Alaska News
- Location
- Alaska
From the transcript
So you're correct that the depreciation offsets— when we're doing an analysis of potential midstream corporate income tax, the depreciation offsets a lot of that income for the first several years, which is why I think 2036 was the first year that we would project a positive corporate income tax from the developer under the project. They also earn— to the extent that they have losses during construction, they could earn a net operating loss that could be carried forward. That net operating loss can offset up to 80% of a tax liability. And so once we get to the 2036 timeframe, we assume that the developer would still have those net operating losses until sometime in the 2040s.
Related Coverage
Alaska's gas-pipeline bill now carries a tax on Hilcorp and others
The Alaska Senate added a corporate income tax on oil and gas pass-through entities like Hilcorp to the AK LNG gas-pipeline bill (HB 381), effective 2028 regardless of the project.
by Walter AlaskaNews2h ago3 min readAIAlaska
