The Resource Development Council for Alaska, the Alaska Support Industry Alliance, Alaska Chamber of Commerce, and Alaska Oil and Gas Association released the following statement in reaction to the newly released legislation for the fourth Special Session:
We appreciate the efforts to find a compromise that moves Alaska closer to developing the Alaska LNG Project and securing a reliable, affordable energy supply for Alaskans.
We recognize the progress made in reducing the proposed tax on qualifying pass-through oil and gas income. However, we must acknowledge a fundamental concern that remains: Alaska could enact a new 2% tax on qualifying pass-through oil and gas income in 2026, and that tax would begin in 2030 even if the Alaska LNG Project never delivers phase one volumes of gas or is ultimately abandoned.
That raises a serious question about whether this tax is truly part of a gasline incentive package or instead represents a new, stand-alone tax on Alaska’s oil and gas industry.
We continue to believe that sound tax policy should be broad-based, transparent, predictable, and considered through the regular legislative process—not attached to legislation intended to advance a specific project. Alaska’s oil and gas companies are already among the state’s largest taxpayers and are essential to producing the energy that powers our homes, businesses, and economy.
We appreciate the willingness to compromise, but a smaller targeted tax is still a targeted tax— and it should not become permanent regardless of whether the project it was intended to support ever moves forward.
We urge legislators to keep the gasline legislation focused on its core purpose: creating the stable, competitive fiscal environment necessary to attract investment, develop Alaska’s resources, strengthen energy security, and deliver long-term economic opportunity for Alaskans.
