Democratic House majority members are proposing changes to an Alaska tax credit program that financially rewards oil exploration and production but is seen by critics as too pricey amid a multibillion-dollar state deficit.
The bill was introduced on behalf of the House Resources Committee by co-chairs Geran Tarr and Andy Josephson, over the objection of minority Republicans.
The measure would, among other things, raise the minimum oil production tax and eliminate the system by which the state purchases credits from small producers and explorers.
Tarr says the state has an overly generous system of credits that needs to be changed.
The president of the Alaska Oil and Gas Association, Kara Moriarty, disagrees with that assessment and worries about the impacts the bill will have on big and small companies.