JUNEAU, Alaska—
With just one day left in the regular session, the Alaska State Senate finally passed a long-awaited measure to provide a substantial oil tax break for explorers. The Bill -- an amended version of House Bill 276 -- leaves the old ACES tax system in place for existing fields. But it would extend a 30% tax credit for explorers who find and produce new fields.
The measure is far less generous than what Governor Sean Parnell has been asking for. And those who back it say it will help re-fill the Trans Alaska Pipeline. Critics argued -- that by applying a 30% tax credit only to new finds -- it will take 10 years or more to bring any new oil to TAPS.
The measure now moves on to the House -- where it's fate is uncertain. It must first pass through the Rules Committee -- where it may be modified. Then it goes to the house floor.
Tomorrow will mark a dramatic finish to a session that moved quite slowly for 89 days, and then suddenly -- in the final 36 hours -- saw a big flurry of legislative activity.
Also on the agenda for tomorrow (Sunday) a film-tax credit extension..... and a measure which would require insurance companies in our state to cover autism.
Finalization of the budget -- with some additional money for schools -- is also on the House's agenda. The last-minute addition of $50 million to school budgets was simultaneously welcomed and criticized by the NEA, which said it was a step in the right direction... But less than adequate. The organization would have liked to have seen $100 million in added funding.
It all makes for an exciting ending to the regular session. An ending with oil tax changes still far from certain... And a proposal for some sort of in-state natural gas pipeline still unresolved.
One thing is clear: If the next 24 hours is anything like the last 24 hours, it will be a dramatic end to the 90-day session.
