Alaska's Governor Parnell signed SB 23, the Tax Credit Bill for Oil and Gas Exploration, Gas Storage and the Film Industry, today while at an event hosted by the Fairbanks Chamber of Commerce.
The bill, sponsored by Representative Steve Thompson, first, gives tax incentives for hyrdocarbon drilling in remote sections of the state such as the Nenana and Selawik Basin and Yukon Flats. The Natural Gas incentive is for drilling and developing resources near communities in remote areas that are in need of a local energy source.
Secondly, the bill incentizes above ground natural gas storage as stated by Governor parnell. “High costs have left many areas unexplored or underexplored. This legislation has the potential to attract significant investment in the Nenana Basin and in Northwest Alaska – as we saw in Cook Inlet,” Governor Parnell said. “This legislation also incentivizes above-ground natural gas storage, which is going to be a big help here in Fairbanks. If we are to maintain adequate supplies at peak load periods or in the event of a disruption, the Interior needs storage capacity.”
The bill also extends the Alaska Film and Television Production Incentive Program for 10 years. The program offers a 30 percent tax credit on all qualified spending in Alaska, with an additional 10 percent tax credit for Alaska hire, two percent tax credit for shooting in rural Alaska, and two percent for working in the winter months.
The bill also has provisions sponsored by Representative Mia Costello. That provision gives incentives for developing high growth technology and research companies in Alaska. It is hoped that the provision would diversify the economy as well as encourage the venture capital investment sector. It is hoped that the provision would improve the business climate in the state.