Democrats Want Oil Production Guarantees in New Tax Proposal
Presented as economically healthier alternative to governor’s bill
ANCHORAGE - If you are an oil producer in Alaska, produce new oil, send it down that pipeline and you'll get a tax break – that's according to the Democratic minority in Juneau.
Both the Senate and House Democrats unveiled bills today that would only give tax breaks if new oil is produced.
It's the latest chapter in the state's effort to revamp its oil tax system, which has put Republicans and Democrats at odds.
Other items in the bills would make state loans available to those producers running into problems getting their oil into our pipeline.
It would also require current and new oil leaseholders to come up with a plan to develop new oil instead of just being a landowner.
One Democratic lawmaker says we need to take a cue from Norway
"With less oil, less time, Norway’s permanent fund is over $600 billion vs. Alaska's permanent fund, which is $42 billion. They do it because they have a fair stream of returns they get. They partner with the industry. They do a lot of the things we are proposing in this bill,” said Senator Bill Wielechowski (D-Anchorage).
Wielechowski said Norway created its PFD system based on Alaska’s.