House and Senate Democratic legislators introduced legislation yesterday to grant tax concessions to oil producers who put new oil into the Alaska pipeline.
The bill targets tax incentives to new fields and to new development in existing fields, and it offers other incentives outside the tax code to spark new development.
The plan would cap the progressive surcharge that companies say eats too deeply into profits, discouraging new investment.
It also would require development plans from initial leases on state lands.
The Democrats oppose an overhaul of the oil tax structure proposed by Governor Sean Parnell, calling it a giveaway to oil companies.
Sen. Bill Wielechowski told Newscetner11 "The numbers that we've seen from the governors own experts show it's extremely profitable to do business in Alaska oil companies have made over 40 billion dollars in profits. Conoco Philips march 23rd 2011 to a bunch of Wall Street executives said Alaska is, has very strong returns and good cash markets so we know Alaska's a good place to do business we just have to start enforcing the leases, acting like a sovereign."