Alert
Welcome to the wonderful world of electronic filing! Effective January 20, 2015, the Alaska Department of Revenue, Tax Division is adding online taxpayer service for Oil and Gas Production Tax to the AK DOR Revenue Online. This additional program now joins the following online tax programs: Alcoholic Beverage Tax, Cigarette and Tobacco Tax, Commercial Vessel Passenger Tax, Corporate Income Tax, Corporate Oil and Gas Income Tax, Large Passenger Vessel Gambling Tax, Mining License Tax, Motor Fuel Tax, Tire Fee, and Vehicle Rental Tax. Revenue Online is going to make filing returns an easy, more accurate and paperless process. This new online service allows users to check their accounts, make payments and file license/permit applications. Revenue Online will be adding additional tax programs to this online service in the near future. Please check the TRMS page on the Tax Division's website frequently for additional announcements and when this new service will be available for your tax program.

Important Announcement:
Revenue Online will not be available starting Saturday, January 17, 2015 at 12:01 am until 2:00 am AKST due to scheduled maintenance. We apologize for any inconvenience.


Oil & Gas Production Tax
Tax News
Tax Revenue Management System Implementation for Oil and Gas Production Tax
AS 43.55 Tax Credit Application Updates


The State of Alaska imposes a production tax, under AS 43.55, on oil and gas produced in the state. The current tax rate of 35% was set in 2013 by Senate Bill 21 (commonly known as the More Alaska Production Act or “MAPA”). The tax is based on the net value of oil and gas, which is the value at the point of production, less all qualified lease expenditures. Qualified lease expenditures include certain qualified capital and operating expenditures.

Tax rates for oil and gas produced from the Cook Inlet are effectively capped at the rate that was imposed on oil and gas produced from each lease or property during the period April 1, 2005 through March 31, 2006. Cook Inlet Gas Prevailing Value is calculated quarterly by the Division and is currently posted on our website (1994 – present).

The oil and gas production tax provides for various credit programs:

AS 43.55.019 Oil or gas producer education credit
AS 43.55.023(a) Qualified capital expenditure credit
AS 43.55.023(b) Carried-forward annual loss credit
AS 43.55.023(l) Well Lease Expenditures credit
AS 43.55.023(d) Transferable tax credit certificate
AS 43.55.023(i) Transitional investment expenditure credit
AS 43.55.024(a) New area development credit
AS 43.55.024(c) Small producer credit
AS 43.55.024(i)-(j) Per-taxable-barrel credit
AS 43.55.025(a)(1)-(4)Alternative Tax Credit for Exploration
AS 43.55.025(a)(5) Cook Inlet jack-up rig credit
AS 43.55.025(a)(6)-(7) Frontier basin credits
AS 43.55.028Cash purchases of tax credit certificates


Under AS 43.55.201, the State collects a 1 cent per barrel conservation surcharge on taxable oil produced if there is less than $50 million in the Hazardous Release Fund. The State also collects an additional 4 cents per barrel conservation surcharge under AS 43.55.300.

More information about the oil and gas production tax may be found in the Tax Division Annual Report.

History of Alaska’s Oil and Gas Production Tax:


Senate Bill 21, aka the More Alaska Production Act (MAPA), was signed by Governor Sean Parnell on May 21, 2013.

Senate Bill 236, House Bill 280, and Senate Bill 309 signed in 2010, by Governor Sean Parnell, created new tax credits and amended some provisions of the tax.

House Bill 2001, aka Alaska’s Clear and Equitable Share (ACES), was signed by Governor Sarah Palin on December 20, 2007.

House Bill 3001, aka Petroleum Production Tax (PPT), signed by Governor Frank Murkowski on August 19, 2006.

Production tax system using the Economic Limit Factor (ELF) was in place from 1977- April 2006.




How to Contact Us
dor.tax.production@alaska.gov
OR

Oil and Gas Production Tax Audit
Jennifer L Mainor
907-269-1041 - Anchorage

Oil and Gas Production Tax Credits
Destin M Greeley
907-269-6642 - Anchorage


Technical Questions
Jennifer L Mainor
907-269-1041 - Anchorage