Alaska legislators adjourned a special session Saturday, narrowly passing a hard-fought revision to the state's oil and gas production tax.
Governor Bill Walker has until June 30 to decide to sign or veto the bill, state tax director Ken Alper said. Walker is unhappy with parts of the measure, mainly modifications that reduced savings to the state treasury from reduced state tax credit expenditures.
Alaska is now running a projected $4 billion deficit due to sharply lower oil revenues.
Democrats and some Republicans in the State House fought the tax credit bill, House Bill 247, because it preserved a 35% net operating loss tax credit for major North Slope producers, while sharply cutting tax credits for smaller companies in Cook Inlet.
The legislature failed to pass another controversial bill that would restructure Alaska's finances. Oil revenues now provide the bulk of funds supporting the state budget. The governor proposed a plan to use earnings from the state's $50 billion-plus Permanent Fund, an oil income savings fund, to help support the budget and reduce dependence on oil royalties and taxes. The bill, Senate Bill 128, died in the House Finance Committee on Friday.