House Passed Oil Tax Credit Bond Bill

first_imgFacebook0TwitterEmailPrintFriendly分享The House passed Governor Walker’s proposal to pay off nearly $1 billion in oil and gas tax credits, on Thursday, May 3. Last year lawmakers worked to end the system that paid tax credits to small companies that produced oil and looked for new fields. Alaska’s three largest oil and gas companies are not eligible to receive these credits. The bill passed in the House by a vote of 23 to 15, and will not we sent to the Senate for consideration. In exchange for getting paid now rather than waiting years, small companies that are owed credits will accept a discounted rate, saving the state a significant amount of money.center_img The measure was introduced by Governor Walker and enables issuance of up to $1 billion in bonds to pay small oil and gas exploration companies the tax credits they were promised by the State of Alaska by past legislatures. Representative Scott Kawasaki (D-Fairbanks) is worried that the state is just trading one debt for another: “This really goes in the wrong direction, in my opinion. What this does is it says rather than trying to live within our means, and come up with a fiscal plan, that we will instead take out a loan, that we will instead take out a credit card.” last_img

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