1. (a) For a tax credit based on expenditures incurred during a calendar year, other than a tax credit under AS 43.55.023(b), as the provisions of that subsection read before Januarv 1, 2018, the amount of the municipal entity's tax credit may not exceed the amount of the tax credit otherwise allowed under this chapter, multiplied by the fraction calculated under (d) of this section for that calendar year.
2. (b) For a tax credit not based on expenditures, other than tax credits under AS 43.55.024(i) and (j), the amount of the municipal entity's tax credit for a calendar year may not exceed the amount of the tax credit otherwise allowed under this chapter, multiplied by the fraction calculated under (d) of this section for that calendar year.
3. (c) A municipal entity is eligible for tax credits under AS 43.55.024(i) or (j) only for oil, otherwise qualifying under AS 43.55.024(i) or (j), that it sells to another party, other than oil in which the federal government or the state has an ownership interest or the ownership or right to which constitutes a landowner's royalty interest.
4. (d) For each calendar year, the municipal entity shall calculate a fraction, the numerator of which is equal to the amount of oil and gas produced by the municipal entity from leases or properties in the state during the calendar year, in BTU equivalent barrels, that the municipal entity sells to another party, other than oil or gas in which the federal government or the state has an ownership interest or the ownership or right to which constitutes a landowner's royalty interest, and the denominator of which is equal to the total amount of oil and gas produced by that municipal entity from leases or properties in the state during the calendar year, in BTU equivalent barrels, other than oil or gas in which the federal government or the state has an ownership interest or the ownership or right to which constitutes a landowner's royalty interest. The fraction is equal to zero for a calendar year during which the municipal entity does not produce any oil or gas, or produces oil or gas from a lease or property, but does not sell any of that oil or gas to another party.

(Eff. 3/1/2017, Register 221; am 12/6/2018, Register 228)

Authority: AS 43.05.080, AS 43.55.024, AS 43.55.895, AS 43.55.019, AS 43.55.025, AS 43.55.023, AS 43.55.110