
Dan Stickel
55:19 - 56:04
"One additional bullet point that should have been on this slide for the version that passed out of the Senate floor is the implementation of a new pass-through entity tax that would apply to certain oil and gas companies in the state."
“One additional bullet point that should have been on this slide for the version that passed out of the Senate floor is the implementation of a new pass-through entity tax that would apply to certain oil and gas companies in the state.”
All right, so slide 9, what would this legislation do? So broadly, it creates the policy framework for replacing certain state municipal property taxes with a temporary tax abatement period followed by implementation of the alternative volumetric tax. Specific to Department of Revenue is the eligibility condition and various detailed information around the revenue collection and allocation. One additional bullet point that should have been on this slide for the version that passed out of the Senate floor is the implementation of a new pass-through entity tax that would apply to certain oil and gas companies in the state.
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.

State economist Dan Stickel told a legislative conference committee Friday that the Senate version of HB 381 reduces the Alaska LNG export break-even price from $9.05 to $8.62 per thousand cubic feet — still above current futures market prices near $8 — prompting Rep. Justin Ruffridge to say the project simply "doesn't work."
