(Juneau) - The House Finance Committee met late this evening to change the Governor's Petroleum Production Tax (PPT) proposal.

The new tax rate will be investment based. The base rate will be increased to 25 percent with provisions that allow energy companies who reinvest their profits in Alaska to reduce that rate to a floor of 20 percent if their investment increases. If companies maintain their current investments in Alaska, the rate would be approximately 22.5 percent.

"This is a compromise on the produce or pay concept. For those that choose to reinvest in Alaska, we will give them consideration on their tax rate," said Representative Ralph Samuels (R-Anchorage). "We hope to incentivise higher production which is critical to our economic future."

The legislation is scheduled for final consideration by the finance committee on Thursday before heading to the House floor.

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