(Juneau) - House Bill 386, sponsored by Representative Vic Kohring (R-Wasilla/Mat-Su), is expected to boost oil and gas drilling and production in the state.

The legislation extends existing tax credits until 2010. The credits are used to offset tax liabilities to the state, including production taxes, property taxes, corporate taxes and lease payments.

Representative Kohring said, "These incentives are the reason many smaller companies have chosen to come to Alaska. Without them, there would be less money invested in drilling and exploring in the state."

In addition, Representative Kohring noted these incentives are especially important in light of the tax increase proposals currently before the Legislature. "Without these credits to offset the effect of the pending tax increases, the result will prove to be a detriment to the future of the oil and gas industry in Alaska."

HB 386 has passed the House Oil & Gas Committee, has been heard in the House Resources Committee, and is expected to move from Resources next week.

# # #