OIL/GAS CORP. INCOME TAX; ROYALTY SALE
Sponsored By: HOUSE RULES BY REQUEST OF THE GOVERNOR
Became Law
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 1 costs, 2 mixed.
New tax on oil and gas businesses
The law creates a new annual state income tax on in‑state income of oil and gas producers and pipeline carriers that are sole proprietors, partnerships, LLCs, or S corporations. Taxable income is figured as if the business were a C corporation, using federal rules as of January 1, 2026. Rates are graduated: $0 under $1,000,000; 5% on $1,000,000–<$2,000,000; $50,000 + 6% over $2,000,000; $110,000 + 7% over $3,000,000; $180,000 + 8% over $4,000,000; and $260,000 + 9.4% over $5,000,000. You cannot use most federal tax credits or deductions to cut this tax; a narrow C‑corporation exception applies. Corporations already taxed under AS 43.20.011, and their unitary affiliates, are exempt. The tax applies to tax years that start on or after January 1, 2026, and key sections are retroactive to that date.
State approves Marathon royalty oil sale
The legislature approves and ratifies the state’s royalty oil sale agreement with Marathon Petroleum Supply and Trading Company LLC and Marathon Petroleum Corporation, dated December 19, 2025. This makes that specific sale official under state law. It affects how the state markets and delivers some oil and may change state receipts.
Combined reporting and filing for oil and gas
The Department of Revenue can combine the income of related businesses when it belongs to a single business and include unitary affiliates’ income. Companies in a unitary group that do business inside and outside Alaska must use combined reporting to find Alaska‑source income. If you must file a federal return, you must file the matching state return within 30 days after the federal filing deadline. The department can adopt rules that apply retroactively if it states the date. If your tax year ended before January 1, 2027, you must pay any balance by January 1, 2027. Until that date, the department waives interest and civil and criminal penalties tied to the law’s retroactive effect.
Sponsors & Cosponsors
Sponsor
HOUSE RULES BY REQUEST OF THE GOVERNOR
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
(S) RECEDE MESSAGE READ
4/15/2026Senate(H) FAILED CONCUR (S) AM Y17 N23
4/13/2026House(H) CONCUR MESSAGE TAKEN UP UC
4/13/2026House(H) CONCUR MESSAGE READ AND HELD
4/1/2026House(S) VERSION: SCS HB 194(FIN) AM S(EFD FLD S)
3/30/2026Senate(S) TRANSMITTED TO (H) AS AMENDED
3/30/2026Senate(S) RECONSIDERATION NOT TAKEN UP
3/30/2026Senate(S) HOFFMAN NOTICE OF RECONSIDERATION
3/25/2026Senate(S) EFFECTIVE DATE(S) FAILED Y13 N6 A1
3/25/2026Senate(S) PASSED Y12 N7 A1
3/25/2026Senate(S) AUTOMATICALLY IN THIRD READING
3/25/2026Senate(S) TITLE CHANGE: SCR 15
3/25/2026Senate(S) ...CHANGES TITLE OF LEGISLATION
3/25/2026Senate(S) AM NO 1 ADOPTED Y11 N8 A1
3/25/2026Senate(S) RETURN TO SECOND FOR AMS UC
3/25/2026Senate(S) READ THE THIRD TIME SCS HB 194(FIN)
3/25/2026Senate(S) ADVANCED TO THIRD READING 3/25 CAL
3/23/2026Senate(S) FIN SCS ADOPTED UC
3/23/2026Senate(S) READ THE SECOND TIME
3/23/2026Senate(S) RULES TO CALENDAR 3/23/2026
3/23/2026Senate(S) FN2: INDETERMINATE(DNR)
3/4/2026Senate(S) NR: OLSON, STEDMAN
3/4/2026Senate(S) DP: HOFFMAN, KAUFMAN, CRONK, MERRICK, KIEHL
3/4/2026Senate(S) FIN RPT SCS 5DP 2NR SAME TITLE
3/4/2026Senate(S) Moved SCS HB 194(FIN) Out of Committee
3/3/2026Senate
Bill Text
SCS HB 194(FIN) am S(efd fld S)
3/25/2026
SCS HB 194(FIN)
3/4/2026
HB 194
4/15/2025