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Agrium Bill Waiting in Senate Resources

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A bill which would make Agrium eligible for tax credits if they reopen their North Kenai plant is still waiting to be heard in the Senate Resources Committee.

 

Nikiski’s Speaker Mike Chenault sponsored HB 100…

 

https://radiokenai.net/wp-content/uploads/2015/04/CHENAULT-ON-NOT-GIVEAWAY.mp3?_=1

Speaker Chenault(R-Nikiski): “Agrium has to produce in order to receive that tax credit and I think that [the House] finally realized that it’s not a giveaway.”

 

The credit would be worth $3-4 million and would essentially reimburse the royalties Agrium’s natural gas suppliers pay to the state.

 

Critics, like Anchorage’s Rep. Les Gara say Agrium doesn’t truly need the credit. He pointed out that the fertilizer plant approached the Alaska Industrial Development and Export Authority for project financing last year, before this bill was introduced.

 

Managers say the Agrium restart would cost $275 million and, if approved, it could take place as early as 2017.

 

According to Chenault’s office, the credit cannot be carried forward from year to year and its value cannot exceed the amount the state receives for its royalty share. Operators wouldn’t be able to apply the credit for restarting a facility or any other pre-production purposes. The tax credit would sunset in 2024.

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