Alaska 34th Alaska State Legislature Status: In Committee

SB 92 — An Act establishing an income tax on certain entities producing or transporting oil or gas in the state; and providing for an effective date.

Last action — (S) REFERRED TO RULES

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced February 10, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 14% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

134 added · 90 removed

Plain-language change summary

The changes to SB 92 clarify how taxes are applied to certain high-income entities in relation to energy projects. The bill specifies that entities must pay a 9.4% tax on income exceeding $5 million, and it establishes a dedicated fund for energy and electrical grid improvements. Additionally, there is a more straightforward definition of what qualifies as taxable income, which ensures that the tax revenue is systematically deposited into the mentioned fund. This matters because it enhances funding for essential energy infrastructure while providing a clear framework for businesses regarding their tax obligations.

→
Previous
Latest
34-LS0540\S CS FOR SENATE BILL NO.
34-LS0540\N SENATE BILL NO.
92(RES) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY THE SENATE RESOURCES COMMITTEE Referred:
92 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY THE SENATE RESOURCES COMMITTEE Introduced:
Finance Sponsor(s):
2/10/25 Referred:
SENATE RESOURCES COMMITTEE A BILL FOR AN ACT ENTITLED "An Act establishing an income tax on certain entities producing or transporting oil or gas in the state;
Resources, Finance A BILL FOR AN ACT ENTITLED "An Act establishing an income tax on certain entities producing or transporting oil or gas in the state;
Tax on income attributable to a qualified entity.
Tax on income attributable to a qualified entity;
(a) If a qualified entity has taxable income over $5,000,000 in a tax year, the qualified entity shall pay a tax of 9.4 percent on the taxable income over $5,000,000.
energy and electrical grid projects or upgrades fund.
(b) For purposes of calculating taxable income under this section, (1) taxable income of a qualified entity is determined under AS 43.20.144 as if the qualified entity were taxable as a corporation, as determined under 26 U.S.C.
(a) If an entity has qualified taxable income over $5,000,000 in a tax year, the entity shall pay a tax of 9.4 percent on the qualified taxable income over $5,000,000.
1361 (Internal Revenue Code), as that section read on January 1, 2025;
(b) The tax under this section does not apply to a corporation paying tax under AS 43.20.011.
(2) notwithstanding AS 43.20.021 and AS 43.20.036, the taxpayer may not apply as a credit or deduction against tax liability a credit or deduction allowed as SB0092B -1- CSSB 92(RES) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\S to federal taxes under 26 U.S.C.
(c) The department shall aggregate the qualified taxable income of two or more entities for the purpose of determining the tax due under this section if the department determines that, without the provisions of this section, the qualified taxable income would reasonably be expected to be attributed to a single entity.
(Internal Revenue Code).
SB0092A -1- SB 92 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\N (d) The energy and electrical grid projects or upgrades fund is established in the general fund.
(c) The tax under this section does not apply to a corporation paying tax under AS 43.20.011 or to an entity that is part of a unitary business with a corporation that pays tax under AS 43.20.011.
The Department of Administration shall separately account for the tax collected under this section and deposit the tax into the energy and electrical grid projects or upgrades fund.
(d) For the purpose of determining the tax due under this section, the department shall (1) aggregate the taxable income of two or more entities if the department determines that, without the provisions of this section, the taxable income would reasonably be expected to be attributed to a single entity;
(e) In this section, (1) "entity" means a (A) sole proprietorship;
and (2) except as provided in (c) of this section, include in the calculation of taxable income of the qualified entity income that is attributable to an entity that is part of a unitary business with the qualified entity paying tax under this section.
(e) In this section, (1) "qualified entity" means a (A) sole proprietorship;
(C) limited liability company;
or (C) entity that has elected to file federal returns under 26 U.S.C.
or (D) entity that has elected to file federal returns under 26 U.S.C.
(2) "taxable income" means income from the production of oil or gas from a lease or property in the state or from the transportation of oil or gas by pipeline in the state.
(2) "qualified taxable income" means income from the production of oil or gas from a lease or property in the state or from the transportation of oil or gas by pipeline in the state before deductions for (A) dividends and gifts;
and (B) wages, salaries, bonuses, or other similar payments to owners, partners, members, or shareholders of the entity.
CSSB 92(RES) -2- SB0092B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\S * Sec.
* Sec.
* Sec.
SB 92 -2- SB0092A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\N * Sec.
AS 43.20.031 is amended by adding a new subsection to read:
AS 43.20.145(a) is amended to read:
(j) For purposes of calculating income under this chapter, a taxpayer may deduct from income a payment to the shareholder, owner, member, or partner of a qualified entity, as that term is defined in AS 43.20.019(e), if (1) the shareholder, owner, member, or partner is a taxpayer under this chapter;
(a) A taxpayer [CORPORATION] that is a member of an affiliated group shall file a return using the water's edge combined reporting method.
(2) the payment does not include a transfer of property;
A return under this section must include the following entities [CORPORATIONS] if the entities [CORPORATIONS] are part of a unitary business with the taxpayer [FILING CORPORATION]:
and (3) the payment is included in the shareholder's, owner's, member's, or partner's income for the purposes of this chapter.
(1) an affiliated corporation that is eligible to be included in a federal consolidated return under 26 U.S.C.
1501 - 1505 (Internal Revenue Code) if the corporation's property, payroll, and sales factors in the United States average (A) 20 percent or more;
or (B) under 20 percent, if the corporation does not meet the requirements of 26 U.S.C.
861(c);
(2) a domestic international sales corporation;
in this paragraph, "domestic international sales corporation" has the meaning given in 26 U.S.C.
992(a);
(3) a foreign sales corporation;
in this paragraph, "foreign sales corporation" has the meaning given to the term "FSC" in 26 U.S.C.
922(a);
(4) a corporation, regardless of the place where the corporation was incorporated, if the corporation's property, payroll, and sales factors in the United States average 20 percent or more;
(5) a corporation that is incorporated in or does business in a country that does not impose an income tax, or that imposes an income tax at a rate lower than 90 percent of the United States income tax rate on the income tax base of the corporation in the United States, if (A) 50 percent or more of the sales, purchases, or payments of income or expenses, exclusive of payments for intangible property, of the corporation are made directly or indirectly to one or more members of a group of corporations filing under the water's edge combined reporting method;
(B) the corporation does not conduct significant economic activity.
The uncodified law of the State of Alaska is amended by adding a new section to read:
AS 43.20.145(b) is amended to read:
APPLICABILITY.
(b) When computing taxable income for a taxpayer [CORPORATION] under SB0092A -3- SB 92 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\N (a) of this section, the following amounts shall be excluded:
This Act applies to a qualified entity with taxable income over $5,000,000 for a tax year beginning on or after January 1, 2025.
(1) 80 percent of dividend income received from foreign corporations;
In this section, "qualified entity" and "taxable income" have the meanings given in AS 43.20.019(e).
(2) an amount treated as a dividend under 26 U.S.C.
Show all 65 changed rows (25 more)
Previous
Latest
78;
(3) 80 percent of the royalties accrued or received from a foreign corporation.
AS 43.20.145(d) is amended to read:
(d) Dividends and royalties taxable to a taxpayer [CORPORATION] using the water's edge combined reporting method are in lieu of an expense attribution for income excluded under (b) of this section.
* Sec.
7.
AS 43.20.145(e) is amended to read:
(e) The department may require a taxpayer [CORPORATION] that files under (a) of this section to file a report under AS 43.20.142 and 43.20.143 prepared without regard to this section if the taxpayer [CORPORATION] or an affiliated entity [CORPORATION] (1) fails to comply with regulations adopted under this chapter, including domestic disclosure spread sheet filing requirements;
or (2) does not provide information that is requested by the department that is necessary for the department to audit the taxpayer's corporate return in a reasonable period of time.
* Sec.
8.
AS 43.20.145(g) is amended to read:
(g) An entity [A CORPORATION] that has signed a contract approved by the legislature as a result of submission of a proposed contract developed under AS 43.82 or as a result of acts by the legislature in implementing the purposes of AS 43.82, providing for payments in lieu of the tax under this chapter and that has nexus with the state solely as the result of the entity's [CORPORATION'S] participation in the approved qualified project that is subject to the contract is not required to file a return under this section unless required to do so by the contract.
* Sec.
9.
APPLICABILITY.
This Act applies to an entity with qualified taxable income over $5,000,000 for a tax year beginning on or after January 1, 2025.
SB 92 -4- SB0092A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\N * Sec.
10.
The uncodified law of the State of Alaska is amended by adding a new section to read:
7.
11.
Notwithstanding a contrary provision of SB0092B -3- CSSB 92(RES) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0540\S AS 44.62.240, if the Department of Revenue expressly designates in the regulation that the regulation applies retroactively to a specific date, a regulation adopted by the department to implement, interpret, make specific, or otherwise carry out this Act applies retroactively to that date.
Notwithstanding a contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in the regulation that the regulation applies retroactively to a specific date, a regulation adopted by the department to implement, interpret, make specific, or otherwise carry out this Act applies retroactively to that date.
8.
12.
9.
13.
CSSB 92(RES) -4- SB0092B New Text Underlined [DELETED TEXT BRACKETED]
SB0092A -5- SB 92 New Text Underlined [DELETED TEXT BRACKETED]
⬇ Download PDF
View plain text versions (3)

How this bill changes current law

9 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes an income tax for certain entities producing or transporting oil or gas in Alaska, specifically taxing income over $5 million at a rate of 9.4%.

  • AS 43.20

    Sec. 43.20.019. Tax on income attributable to a qualified entity. (a) If a qualified entity has taxable income over $5,000,000 in a tax year, the qualified entity shall pay a tax of 9.4 percent on the taxable income over $5,000,000.

    This new section imposes a tax on entities with substantial income from oil or gas in Alaska.

  • AS 43.20.030(a)

    If a taxpayer [CORPORATION], or a partnership that has a taxpayer [CORPORATION] as a partner, is required to make a return under the provisions of the Internal Revenue Code, the taxpayer [IT] shall file with the department, within 30 days after the federal return is required to be filed, a return setting out → If a taxpayer, or a partnership that has a taxpayer as a partner, is required to make a return under the provisions of the Internal Revenue Code, the taxpayer shall file with the department, within 30 days after the federal return is required to be filed, a return setting out

    This change eliminates the specific mention of 'corporation' and 'it', broadening the applicability of the filing requirement.

  • AS 43.20.031(i)

    A taxpayer that [CORPORATION WHICH] is a member of a group of unitary corporations or entities that [WHICH] collectively has income from business activity taxable both inside and outside the state, or income from other sources both inside and outside the state, shall determine its income from sources in this state by use of the combined method of accounting. → A taxpayer that is a member of a group of unitary corporations or entities that collectively has income from business activity taxable both inside and outside the state, or income from other sources both inside and outside the state, shall determine its income from sources in this state by use of the combined method of accounting.

    This amendment simplifies the language regarding how taxpayers within a unitary group determine their taxable income.

  • AS 43.20.031

    For purposes of calculating income under this chapter, a taxpayer may deduct from income a payment to the shareholder, owner, member, or partner of a qualified entity, as that term is defined in AS 43.20.019(e), if

    This addition allows certain payments to shareholders or members of qualified entities to be deducted from taxable income.

  • Uncodified law of the State of Alaska

    APPLICABILITY. This Act applies to a qualified entity with taxable income over $5,000,000 for a tax year beginning on or after January 1, 2025.

    This section specifies the applicability of the new income tax starting from January 1, 2025.

  • Uncodified law of the State of Alaska

    TRANSITION: PAYMENT OF TAX. A person subject to tax before the effective date of this Act under AS 43.20.019, added by sec. 1 of this Act, shall pay the balance of the tax due for a tax year ending before January 1, 2026, by January 1, 2026.

    This section outlines a transition period for the payment of taxes related to the new income tax provisions.

  • Uncodified law of the State of Alaska

    RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in the regulation that the regulation applies retroactively to a specific date, a regulation adopted by the department to implement, interpret, make specific, or otherwise carry out this Act applies retroactively to that date.

    This section allows regulations implementing this Act to be applied retroactively if so specified.

  • Uncodified law of the State of Alaska

    RETROACTIVITY. This Act is retroactive to January 1, 2025.

    This states that the new income tax law will have retroactive effects starting January 1, 2025.

  • AS 01.10.070(c)

    This Act takes effect immediately under AS 01.10.070(c).

    This provision indicates that the law will take effect immediately upon passage.

Action History

  1. (S) REFERRED TO RULES

  2. (S) FN1: INDETERMINATE(REV)

  3. (S) DNP: KAUFMAN, CRONK

  4. (S) NR: STEDMAN, MERRICK

  5. (S) DP: OLSON, HOFFMAN, KIEHL

  6. (S) FIN RPT CS 3DP 2NR 2DNP SAME TITLE

  7. (S) Minutes (SFIN)

  8. (S) Moved CSSB 92(FIN) Out of Committee

  9. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  10. (S) Minutes (SFIN)

  11. (S) Heard & Held

  12. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  13. (S) Minutes (SFIN)

  14. (S) Heard & Held -- Please Note Time Change --

  15. (S) FINANCE at 01:30 PM SENATE FINANCE 532

  16. (S) Minutes (SFIN)

  17. (S) Heard & Held

  18. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  19. (S) Minutes (SFIN)

  20. (S) Heard & Held

  21. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  22. (S) FN1: INDETERMINATE(REV)

  23. (S) AM: KAWASAKI

  24. (S) NR: CLAMAN

  25. (S) DNP: HUGHES, MYERS

  26. (S) DP: GIESSEL, DUNBAR, WIELECHOWSKI

  27. (S) RES RPT CS 3DP 2DNP 1NR 1AM SAME TITLE

  28. (S) Minutes (SRES)

  29. (S) Moved CSSB 92(RES) Out of Committee

  30. (S) RESOURCES at 03:30 PM BUTROVICH 205

  31. (S) Minutes (SRES)

  32. (S) Heard & Held

  33. (S) RESOURCES at 03:30 PM BUTROVICH 205

  34. (S) Minutes (SRES)

  35. (S) Heard & Held

  36. (S) RESOURCES at 03:30 PM BUTROVICH 205

  37. (S) PRIME SPONSOR CHANGED - SENATE RESOURCES COMMITTEE REPLACED SENATOR YUNDT

  38. (S) Minutes (SRES)

  39. (S) Heard & Held

  40. (S) RESOURCES at 03:30 PM BUTROVICH 205

  41. (S) Minutes (SRES)

  42. (S) Heard & Held

  43. (S) RESOURCES at 03:30 PM BUTROVICH 205

  44. (S) RES, FIN

  45. (S) READ THE FIRST TIME - REFERRALS

Sponsors

  • Senate Resources · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

  • Senate Resources

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

Show all 64 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 92?
SB 92 is sponsored by Senate Resources.
What is the current status of SB 92?
This bill is in committee in the Senate. Introduced February 10, 2025. It must pass committee before a floor vote.
Where can I track SB 92?
Track SB 92 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 92

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 92

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →