"An Act extending and amending the requirements applicable to the credit that may be claimed for certain oil and gas exploration expenses incurred in Cook Inlet against oil and gas properties production (severance) taxes. "

Sec. 1: Extends the dates of the 2003 incentive credits legislation out to 2010 for the Cook Inlet basin.

Sec. 2: Provides language that allows exploration wells in the Cook Inlet to be within the 3-mile limit, subject to review and approval by the commissioner. This provide a 20% credits.

Sec. 3: Provides language that decreases the 25-mile boundary limit to 10 miles for the Cook Inlet basin. This provides a 20% credit.

Sec. 4: Requires the commissioner to evaluate the explorer’s claim for a 20% credit (within 3-mile) within 60 days of receipt of the information.

Sec. 5: Provides language that caps the exploration credits in the Cook Inlet to a maximum of $20,000,000.

Sec 6: Language that provides a definition to "Cook Inlet basin" and references the definition currently provided in another statute.

SB 163

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