1. (a) For purposes of AS 43.55.165(a)(2), as repealed and reenacted by sec. 58, ch. 1, SSSLA 2007, a reasonable allowance for the calendar year for a producer's or explorer's overhead expenses directly related to exploring for, developing, or producing oil or gas deposits located within a lease or property or other land in the state is 4.5 percent of the producer's or explorer's lease expenditures, net of adjustments under AS 43.55.170, that are incurred during the calendar year and that are allowed as direct charges under 15 AAC 55.260, excluding

   1. (1) payments of or in lieu of taxes other than

      1. (A) payroll taxes under 15 AAC 55.260(a)(3);
      2. (B) sales taxes, use taxes, or excise taxes on goods or services;
   2. (2) net profit share payments under 15 AAC 55.260(a)(2).
2. (b) An allowance for overhead expenses is not a qualified capital expenditure.
3. (c) This section applies to expenditures incurred on or after March 1, 2010.

(Eff. 2/27/2010, Register 193)

Authority: AS 43.05.080, AS 43.55.110, AS 43.55.165