All Roll Calls
Yes: 289 • No: 285
AlaskaHB 38134th Legislature (2025-2026)HouseWALLET
OIL & GAS PROPERTY TAX; MUNI TAX; AGDC
Sponsored By: HOUSE RULES BY REQUEST OF THE GOVERNOR
Failed
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 10 benefits, 2 costs, 6 mixed.
Tax breaks for gas project property
The law creates a temporary break from specified state and local taxes for the defined natural gas project's property. It begins when the project tax provisions take effect after the required revenue commissioner certification. The break ends on the first day of a 30-day period averaging 500 million cubic feet of gas daily, or five years after phase-one commercial operations begin, whichever comes first. Project property covered by that break or the later gas-volume tax is exempt from municipal property tax. That property also does not count toward the property-value limit on municipal taxation.
Gas project tax breaks require deadlines
The special project tax rules end without a phase-one final investment decision by January 1, 2028. They also end unless the pipeline is complete by December 31, 2034, and a major component starts commercial operations by January 1, 2037. The investment decision requires firm financing, binding construction agreements, sufficient gas-sale commitments, a completed cost estimate, and a final resource report. The revenue commissioner can extend deadlines for war, riots, natural disasters, unusually severe weather, or other unforeseeable or uncontrollable causes—not gas-price market changes. When special treatment ends, other applicable state and municipal property taxes apply.
Developer payments fund local impact grants
To activate specified project tax and local-impact provisions, the developer must pay Alaska $50 million within 60 days of the phase-one final investment decision. The developer must also contractually commit to paying $40 million within 60 days of a phase-two final investment decision. The revenue commissioner must confirm the payment and required project commitments before January 1, 2032; the specified provisions take effect the next day. The legislature may appropriate the payments for municipal impact grants, and the law states an intent to use $10 million of the first payment for listed workforce projects. Grants address verified actual or reasonably expected pipeline construction effects, prioritizing local need and severity; neither the state nor state corporations owe the developer payments.
Gas project owners pay volume-based taxes
After the temporary tax break ends, covered owners pay tax per 1,000 cubic feet of gas transported. The rate is $0.062 before the related liquefied natural gas plant begins commercial operations, then $0.106. Another $0.106 applies 10 years after operations begin; another $0.212 applies beginning January 1, 2060. After the first tax year, annual inflation increases range from 1% to 3%. Owners file monthly gas-volume returns and installment payments, pay any remaining annual tax by April 30, and face a 15% late-payment penalty plus interest. Owners must provide tax information when requested; qualifying business information stays private upon request when disclosure would harm competition or its commercial value.
New tax for oil and gas businesses
Beginning January 1, 2029, qualifying entities owe annual tax on income earned or accrued from specified Alaska oil and gas activities; individuals are not qualifying entities. The schedule taxes income below $1 million at 0%, then successive $1 million brackets at 5%, 6%, 7%, and 8%. Income above $5 million faces a 9.4% marginal rate, with the schedule's base tax amounts applying to each bracket. Income is calculated and assigned to Alaska as for a C corporation; qualifying entities can use comparable credits and deductions. Exclusions cover specified corporations and groups with a taxable corporate member, Alaska liquefied natural gas project income, federally tax-exempt entities, and income proportional to public-corporation ownership. Qualifying payments to owners are deductible only when owners report them as taxable income, the payments are not property transfers, and they are not intended to reduce or evade tax.
Price protections for Alaska utility customers
The law caps covered utility gas contracts at $16 per million British thermal units, not household bills. The cap covers contracts with pipeline owners or operators whose projects are advanced, operated, or partly owned by Alaska's gasline corporation. Annual increases cannot exceed the lower of 3% or the specified five-year average U.S. consumer inflation rate. Utilities need commission approval to recover costs from pipeline or liquefied natural gas capacity contracts lasting more than one year. The commission cannot approve covered contracts that charge customers for construction overruns or raise approved rates because gas throughput falls.
Limits on gas project secrecy
Alaska's gasline corporation must follow open-meeting rules and publish its adopted regulations; the Administrative Procedure Act otherwise does not apply. Confidentiality agreements cannot override court or agency disclosure orders or hide specified state funding risks, ownership, management, or investment-option information. Covered project information must be available while a state option is exercisable, and nonconfidential regulatory filings cannot be hidden. Specific project costs may stay private when disclosure reasonably threatens business competition, but safe estimated ranges or summaries must explain state financial exposure. Covered revenue-project information may become confidential after an option expires without being used.
Public dashboards track Alaska gas projects
Alaska's gasline corporation must report on Alaska gas pipeline projects by February 15 and August 15 each year. Reports and public dashboards cover projects even when the corporation does not own or operate them, and developers must supply information. They track schedules, permits, contracts, delivery and ratepayer issues, community impacts, workforce data, and major capital spending when the state invests. Dashboards require updates at least monthly before commercial operations, quarterly afterward, and within 10 business days of learning about material changes. A public archive preserves earlier versions; reasonable redactions, ranges, summaries, or status indicators can protect sensitive information.
Alaska vendors gain gas project preferences
The Alaska Gasline Development Corporation must publish purchasing rules that use competitive bidding and give vendors fair opportunities. The rules must include the state's 5% purchasing preference and an Alaska veterans' preference. They must also explain how emergency and extraordinary purchases are handled. The corporation must use Alaska contractors and suppliers to the maximum extent possible. The law does not promise a contract or a set amount of work.
Safeguards protect Alaska's gas project interests
The Alaska Gasline Development Corporation must act in the state's best interest and safeguard its interests for its legal purposes. Project ownership and operating agreements, and transfers of projects or asset interests, remain subject to statutory transaction limits. Before selling or transferring a subsidiary ownership or management interest, the corporation must notify each legislative chamber's presiding officer. The legislature has 90 days to block the transaction by law; without disapproval, it can proceed. A developer legally involved with the corporation cannot demand reimbursement for project value added by enactment of the alternative tax structure.
Developer must commit to Fairbanks gas line
The law requires a developer commitment to build a gas spur line serving Fairbanks and the Fairbanks North Star Borough. That commitment is part of the project conditions the revenue commissioner must confirm before January 1, 2032. Permit work must begin in good faith by phase-one completion, and construction must start within one year after necessary approvals. The line must be scheduled to operate within two years after a major project component starts commercial operations. It must meet projected Interior demand, connect to local distribution, deliver safe and reliable service at the lowest reasonable cost, and spread costs systemwide rather than only across the Interior.
Heating fund supports areas without pipelines
The law establishes an Alaska affordable heating fuel fund. It receives 20% of state royalty-gas revenue transported through an Alaska liquefied natural gas project after Permanent Fund payments, plus fund interest. The legislature may use it to reduce heating costs where direct North Slope pipeline access is absent or not expected. Deposits cannot interfere with the affordable energy fund or public school trust fund. The fund is not constitutionally dedicated, and no household payment or appropriation is guaranteed.
Labor agreements cover Alaska project workers
The developer must commit to labor agreements for project work performed in Alaska. Phase-one construction requires a comprehensive bargaining agreement involving contractors and appropriate labor representatives. For phase two, the developer must make a binding commitment to require project labor agreements. The law also requires apprenticeship support and use requirements for the project. These commitments are part of the project conditions the revenue commissioner must confirm before January 1, 2032.
Gas taxes support boroughs and communities
Before the related liquefied natural gas plant operates, the $0.062 gas-volume tax goes 6% to North Slope Borough, 47% to pipeline areas, and 47% to state community assistance. Once it operates, the $0.106 base tax goes 48.4% to Kenai Peninsula Borough, 27% to North Slope Borough, and 5.6% to the state. Pipeline areas and state community assistance each receive another 9.5% of that base tax. The added $0.106 tax after 10 years goes entirely to community assistance; the added $0.212 starting in 2060 goes entirely to the state general fund. Pipeline-area shares follow pipeline length within each area, and community-assistance spending requires legislative appropriation.
New filing rules for Alaska businesses
Qualifying oil and gas entities must file a one-time informational return by March 16, 2028. It covers their latest completed tax year ending before January 1, 2028, includes required tax information, and triggers existing penalties for late or missing filing. No tax is due through that informational return for a tax year beginning before January 1, 2029. Covered taxpayers and partnerships with a taxpayer partner must file Alaska returns within 30 days after their required federal return deadline, reporting tax after credits and other required information. Related businesses operating as one business with income inside and outside Alaska must use combined accounting to calculate Alaska-source income.
Gas project borrowing needs legislative approval
The gasline corporation and its subsidiaries need approval by law before issuing bonds, following notice to legislative leaders and finance chairs. Without approval within 90 days, issuance is blocked; qualifying bonds that refinance existing debt are exempt. A new project bond fund holds appropriated money that the corporation can use for bond obligations without another appropriation. Subsidiary and negotiated-option revenues go into separate state general fund accounts; the legislature may fund estimated annual bond obligations. Investment and subsidiary-transfer rules now refer to the bond fund, remove former fund references, and preserve bondholder contracts and restrictions on appropriated bond-fund money. The corporation may hire the Department of Revenue to manage the fund.
Public project investments require approval
When Alaska's gasline corporation negotiates to join a revenue-producing project, it must seek an option for state ownership. The legislature must approve the option and any state purchase, act as a careful investor, and receive requested information and hearing testimony. The state gets at least 180 days after legislative notice to exercise the option, including covered options negotiated before this rule took effect. Municipalities must have an opportunity to buy part of an unused additional ownership right through a corporation-managed entity, not directly. Separately, the conditional project provisions require at least 180 days after the phase-one investment decision for state and applicable municipal options. Information supplied to the revenue commissioner through the investment-review process is not a public record.
New local school funding formula
The law changes local school contributions when the project-related school funding provisions take effect after commissioner certification. The property-based amount uses a 2.65-mill levy on full taxable value as of January 1 of the second preceding fiscal year. Gas project property under the tax break or gas-volume tax is excluded from that value. Where a municipality collects the gas-volume tax, or the state collects it on its behalf, the formula adds prior collections multiplied by 2.65 and divided by the specified state mill rate. Required contributions cannot exceed 45% of the prior year's basic school funding need, and increases over the specified prior-year contribution amounts are limited to 4%.
Sponsors & Cosponsors
Sponsor
HOUSE RULES BY REQUEST OF THE GOVERNOR
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 7/16/2026
CC REPORT ADOPTED Y11 N8 E1 CCS HB 381
Yes: 11 • No: 8
House vote • 7/16/2026
CC REPORT FAILED Y19 N19 E2
Yes: 19 • No: 19
House vote • 6/20/2026
FAILED CONCUR (S) AM Y12 N28
Yes: 12 • No: 28
Senate vote • 6/19/2026
AM NO 13 FAILED Y9 N11
Yes: 9 • No: 11
Senate vote • 6/19/2026
AM 1 TO AM 2 FAILED Y7 N13
Yes: 7 • No: 13
Senate vote • 6/19/2026
AM NO 4 FAILED Y8 N12
Yes: 8 • No: 12
Senate vote • 6/19/2026
AM NO 14 ADOPTED Y14 N6
Yes: 14 • No: 6
Senate vote • 6/19/2026
AM NO 15 ADOPTED Y14 N6
Yes: 14 • No: 6
Senate vote • 6/19/2026
AM NO 16 ADOPTED Y13 N7
Yes: 13 • No: 7
Senate vote • 6/19/2026
AM NO 2 ADOPTED Y11 N9
Yes: 11 • No: 9
Senate vote • 6/19/2026
AM NO 17 FAILED Y10 N10
Yes: 10 • No: 10
Senate vote • 6/19/2026
AM NO 5 ADOPTED Y16 N4
Yes: 16 • No: 4
Senate vote • 6/19/2026
AM NO 7 FAILED Y9 N11
Yes: 9 • No: 11
Senate vote • 6/19/2026
AM NO 12 ADOPTED Y14 N6
Yes: 14 • No: 6
Senate vote • 6/19/2026
AM NO 19 ADOPTED Y11 N9
Yes: 11 • No: 9
Senate vote • 6/19/2026
PASSED Y12 N8
Yes: 12 • No: 8
Senate vote • 6/19/2026
AM NO 8 FAILED Y10 N10
Yes: 10 • No: 10
Senate vote • 6/19/2026
AM NO 6 FAILED Y7 N13
Yes: 7 • No: 13
Senate vote • 6/19/2026
AM NO 10 FAILED Y10 N10
Yes: 10 • No: 10
Senate vote • 6/19/2026
AM NO 11 FAILED Y9 N11
Yes: 9 • No: 11
Senate vote • 6/19/2026
AM NO 1 FAILED Y9 N11
Yes: 9 • No: 11
House vote • 6/12/2026
PASSED Y34 N5 E1
Yes: 34 • No: 5
House vote • 6/12/2026
AM NO 2 FAILED Y12 N27 A1
Yes: 12 • No: 27
House vote • 6/12/2026
AM NO 3 FAILED Y8 N31 E1
Yes: 8 • No: 31
Actions Timeline
(H) PERMANENTLY FILED IN THE (H)
9/30/2026House(H) ENGROSSED
9/30/2026House(S) Minutes (SHB381)
7/16/2026Senate(S) Moved CCS HB 381 Out of Committee -- Rescheduled from 07/15/2026 --
7/16/2026Senate(S) CONFERENCE COMMITTEE ON HB381 at 08:00 AM SENATE FINANCE 532
7/16/2026Senate(H) Minutes (HHB381)
7/16/2026House(H) Moved CCS HB 381 Out of Committee
7/16/2026House(H) CONFERENCE COMMITTEE ON HB381 at 08:00 AM SENATE FINANCE 532
7/16/2026House(H) VERSION: CCS HB 381(FLD H)
7/16/2026House(H) CC REPORT FAILED Y19 N19 E2
7/16/2026House(H) CC REPORT READ AND TAKEN UP
7/16/2026House(H) FN7: (REV)
7/16/2026House(H) FN6: (CED)
7/16/2026House(H) FN5: (CED)
7/16/2026House(H) CC REPORT: CCS HB 381 RECEIVED 7/16/26
7/16/2026House(H) LIMITED POWERS FREE CONFERENCE GRANTED
7/16/2026House(S) EFFECTIVE DATE(S) ADOPTED Y19 N- E1
7/16/2026Senate(S) CC REPORT ADOPTED Y11 N8 E1 CCS HB 381
7/16/2026Senate(S) CC REPORT READ AND TAKEN UP
7/16/2026Senate(S) FN7: (REV)
7/16/2026Senate(S) FN6: (CED)
7/16/2026Senate(S) FN5: (CED)
7/16/2026Senate(S) CC REPORT: CCS HB 381 RECEIVED 7/16 11:39 AM
7/16/2026Senate(S) LIMITED POWERS FREE CONFERENCE GRANTED
7/16/2026SenateAudio/Video
7/16/2026House
Bill Text
CCS HB 381
7/16/2026
CCS HB 381(fld H)
7/16/2026
SCS CSHB 381(FIN)
6/19/2026
SCS CSHB 381(FIN) am S
6/19/2026
CSHB 381(FIN)
6/12/2026
CSHB 381(FIN) am
6/12/2026
CSHB 381(RES)
5/8/2026
HB 381
3/20/2026