Dear Neighbors,

After working all weekend, the Senate Finance Committee, just moments ago, passed a new version of the Petroleum Production Tax bill. The extra time invested in rewriting this bill was well worth the effort. In fact, the Commissioner of Revenue who developed the original bill has testified that the new PPT bill is stronger and better than the one that failed to pass in the waning moments of the regular session.

The bill will go to the Senate Floor in the next hour, where it is very likely to be approved and, after a final vote, sent to the House for their consideration.

The tax rate in this compromise bill will be 22.5% with a 20% investment credit. In addition, the rate will go up at .1% when the price of oil is over $50 per barrel.

While what changes the House might propose are as yet unknown, the Senate version has been the product of much research, constituent input, and debate. Without the compromises that were necessary to produce this bill, it is unlikely that any version of the PPT would have passed the Senate.

It remains to be seen whether the House will concur with the Senate version of the bill, but I am hopeful they will. I believe we have made substantial progress, doing what best for Alaska's long-term interests.

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