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AlaskaHB 19434th Legislature (2025-2026)House

OIL/GAS CORP. INCOME TAX; ROYALTY SALE

Sponsored By: HOUSE RULES BY REQUEST OF THE GOVERNOR

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

New oil taxes with limited deductions

For tax years beginning January 1, 2026, or later, qualifying businesses pay a new Alaska oil and gas income tax. Covered businesses include sole owners, partnerships, limited liability companies, and businesses that elect federal S corporation taxation. The tax covers Alaska oil or gas production, pipeline transportation, and income of related businesses operated as one business. Existing Alaska corporate taxpayers and businesses operated as one business with them are excluded. Annual tax is $0 through $1 million of taxable income. It is 5% of income above $1 million through $2 million; $50,000 plus 6% above $2 million through $3 million; $110,000 plus 7% above $3 million through $4 million; $180,000 plus 8% above $4 million through $5 million; and $260,000 plus 9.4% above $5 million. Income is calculated as for a C corporation, using the federal definition dated January 1, 2026. Most federal credits and deductions do not apply. Payments to owners are deductible only when no property transfers and the recipient is an Alaska taxpayer who reports the payment as income. The state can combine related businesses' income, include qualifying affiliates' income, and adopt rules against tax evasion. Returns must provide information needed to calculate income under Alaska corporate tax rules.

Payment relief for retroactive oil taxes

The new tax and related filing rules apply retroactively to January 1, 2026. Taxpayers covered before the tax's effective date get a January 1, 2027, deadline for remaining tax from years ending before that date. Until January 1, 2027, the state must waive interest and specified civil and criminal penalties caused by retroactive application. The tax itself remains due. The Department of Revenue can also make implementing regulations apply retroactively.

New Alaska business tax reporting rules

Beginning January 1, 2026, affected taxpayers required to file federal returns must file Alaska returns within 30 days after the federal deadline. Partnerships with a partner who has that federal filing duty must also file. Returns must report tax due after claimed credits and provide information the state requires. Related businesses operated as one group must use combined accounting when they have taxable activity or other income inside and outside Alaska. This calculation determines Alaska-source income; the law does not specify whether each group's tax rises or falls.

Alaska approves royalty oil sale to Marathon

The law approves and ratifies Alaska's royalty oil sale agreement with Marathon Petroleum Supply and Trading Company LLC. Marathon Petroleum Corporation is also a party. The agreement is Exhibit 1 to the state's final sale finding dated December 19, 2025. Alaska exchanges royalty oil for payment, but the supplied text gives no sale volume, price, delivery schedule, or household cost effect.

Sponsors & Cosponsors

Sponsor

  • HOUSE RULES BY REQUEST OF THE GOVERNOR

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 53 • No: 44

House vote • 4/13/2026

FAILED CONCUR (S) AM Y17 N23

Yes: 17 • No: 23

Senate vote • 3/25/2026

PASSED Y12 N7 A1

Yes: 12 • No: 7

Senate vote • 3/25/2026

EFFECTIVE DATE(S) FAILED Y13 N6 A1

Yes: 13 • No: 6

Senate vote • 3/25/2026

AM NO 1 ADOPTED Y11 N8 A1

Yes: 11 • No: 8

Actions Timeline

  1. (S) RECEDE MESSAGE READ

    4/15/2026Senate

  2. (H) FAILED CONCUR (S) AM Y17 N23

    4/13/2026House

  3. (H) CONCUR MESSAGE TAKEN UP UC

    4/13/2026House

  4. (H) CONCUR MESSAGE READ AND HELD

    4/1/2026House

  5. (S) VERSION: SCS HB 194(FIN) AM S(EFD FLD S)

    3/30/2026Senate

  6. (S) TRANSMITTED TO (H) AS AMENDED

    3/30/2026Senate

  7. (S) RECONSIDERATION NOT TAKEN UP

    3/30/2026Senate

  8. (S) HOFFMAN NOTICE OF RECONSIDERATION

    3/25/2026Senate

  9. (S) TITLE CHANGE: SCR 15

    3/25/2026Senate

  10. (S) EFFECTIVE DATE(S) FAILED Y13 N6 A1

    3/25/2026Senate

  11. (S) PASSED Y12 N7 A1

    3/25/2026Senate

  12. (S) AUTOMATICALLY IN THIRD READING

    3/25/2026Senate

  13. (S) ...CHANGES TITLE OF LEGISLATION

    3/25/2026Senate

  14. (S) AM NO 1 ADOPTED Y11 N8 A1

    3/25/2026Senate

  15. (S) RETURN TO SECOND FOR AM 1 UC

    3/25/2026Senate

  16. (S) READ THE THIRD TIME SCS HB 194(FIN)

    3/25/2026Senate

  17. (S) ADVANCED TO THIRD READING 3/25 CAL

    3/23/2026Senate

  18. (S) FIN SCS ADOPTED UC

    3/23/2026Senate

  19. (S) READ THE SECOND TIME

    3/23/2026Senate

  20. (S) RULES TO CALENDAR 3/23/2026

    3/23/2026Senate

  21. (S) FN2: INDETERMINATE(DNR)

    3/4/2026Senate

  22. (S) NR: OLSON, STEDMAN

    3/4/2026Senate

  23. (S) DP: HOFFMAN, KAUFMAN, CRONK, MERRICK, KIEHL

    3/4/2026Senate

  24. (S) FIN RPT SCS 5DP 2NR SAME TITLE

    3/4/2026Senate

  25. (S) Moved SCS HB 194(FIN) Out of Committee

    3/3/2026Senate

Bill Text

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