In a X post today, July 16, 2026, Governor Mike Dunleavy clarified for all Alaskans that he will not accept the Legislature’s gasline bill if it contains a tax on S-corps, otherwise known as “pass-through entities.” He also announced he will be calling another special session to begin July 27.
According to the Governor’s post, the bill to provide a workable tax structure for the Alaska LNG bill is close to the finish line. The Legislature focused heavily on this bill during its second regular session and was called into two special sessions specifically focused on this gasline bill.
However, the Governor warned the Legislature that while he appreciates the progress made on the bill, he finds it unacceptable to attach an under-analyzed S-corp tax to this bill. He writes, “Including the S Corp tax provision introduced by the Senate raises serious concerns. By the conference committee’s own admission, this provision has not been adequately debated, tested, modeled, or analyzed.”
“The bill started as simple property tax relief and a straightforward volumetric tax as a replacement. The S Corp tax provision in the bill is neither simple nor straightforward and could have unintended consequences that destabilize the business environment in Alaska and negatively impact Alaskans,” writes Governor Dunleavy.
Then, he says that he will veto the bill if it contains the S-corp tax. “If the legislature passes the bill in its current form, I will veto it.”
He also announced that he will be calling another special session to start July 27. This will be the third special session focused on the Alaska LNG project this year.
