A bill that would extend the state’s corporate income tax to companies like Hilcorp is making its way through the Alaska Legislature.
The bill would also reduce the per-barrel break for companies by $3 per barrel of oil at certain price thresholds. The legislation comes in a heightened moment for the state’s oil and gas industry, with warnings about shortfalls in natural gas production in Cook Inlet. The change in the production tax rate would not directly impact production in Cook Inlet. The state years ago set on Cook Inlet oil and gas aimed at keeping Southcentral energy prices low. The majority of energy used on the Railbelt comes from Cook Inlet natural gas, from Hilcorp.
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