JUNEAU, Alaska (AP) — An Alaska Senate committee has proposed eliminating cash credits for oil and gas companies that lawmakers have increasingly come to see as unaffordable.
The proposal doesn't delve as deeply into oil tax policy as the version that passed the House. But the Alaska Oil and Gas Association says an initial review indicates it would raise taxes.
The issue over how much to change oil tax and credit policy is likely to be hotly debated as lawmakers try to come to terms on a broader package to address the state's multibillion-dollar budget deficit.
Senate Resources Committee Chair Cathy Giessel says there's agreement in the Senate about the need to address cashable credits.
The Senate Resources version of the bill will now go to Senate Finance, where it could be changed further.