SB 92 Alaska Senate · 34th Legislature (2025-2026)

An Act establishing an income tax on certain entities producing or transporting oil or gas in the state; and providing for an effective date.

SB 92 establishes a 9.4% income tax on oil and gas producers and transporters in Alaska with annual "qualified taxable income" exceeding $5 million. The tax applies to sole proprietorships, partnerships, and certain pass-through entities filing under IRS Section 1361-1379, calculated on income from oil/gas production or pipeline transportation (minus dividends, gifts, and owner compensation). Revenue from this tax will fund energy and electrical grid projects through a dedicated state fund. The bill defines "qualified taxable income" as gross oil/gas revenue before deducting specific payments to owners or partners.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 10, 2025 Last action May 9, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

CSSB 92(RES) → CSSB 92(FIN) · 3 edits

MINOR

The bill was revised from a Resources Committee version to a Finance Committee version, with the committee name and bill identifier updated. The most substantive change is in Section 1, where the tax provision now explicitly allows C corporations to take certain federal tax credits or deductions that were previously excluded, clarifying how the tax applies to different business structures. The bill's applicability, transition rules, and retroactivity provisions remain unchanged.

ELIGIBILITY

Section 1(b)(1) was modified to specify that taxable income is calculated as if the entity were taxable as a 'C corporation' as defined by 26 U.S.C. 1361(a)(2), adding clarity to how the tax applies to different corporate structures.

TECHNICAL

The bill header was updated from 'CSSB 92(RES)' (Resources Committee) to 'CSSB 92(FIN)' (Finance Committee), and the bill identifier changed from 'SB0092B' to 'SB0092C', reflecting committee review and revision.

The offer date was changed from 4/4/25 to 5/9/25, and the referral was updated from 'Finance' to 'Rules', indicating procedural progression through the legislative process.

SB 92 → CSSB 92(RES) · 8 edits

MODERATE

This bill was revised to clarify its title and sponsorship, update dates, and significantly restructure the tax provisions to apply to a broader range of business entities. The changes remove references to a specific 'energy and electrical grid projects or upgrades fund' and replace them with a more general tax framework that applies to qualified entities including sole proprietorships, partnerships, LLCs, and certain federal pass-through entities.

Scope change

The bill's scope expanded from targeting only specific energy-related entities to applying to a broader category of 'qualified entities' with taxable income over $5,000,000, including LLCs and other pass-through entities that were previously excluded or less clearly defined.

TITLE

Changed the bill title from 'SENATE BILL NO. 92' to 'CS FOR SENATE BILL NO. 92(RES)' and updated the sponsor information to reflect the Senate Resources Committee.

TIMELINE

Updated the introduction date from 2/10/25 to 4/4/25 and changed the referral from 'Resources, Finance' to just 'Finance'.

Added applicability and transition provisions specifying the tax applies to tax years beginning on or after January 1, 2025, with a payment deadline of January 1, 2026.

ELIGIBILITY

Expanded eligibility to include limited liability companies (LLCs) and clarified that the tax applies to entities filing federal returns under specific Internal Revenue Code sections.

FISCAL

Removed the specific establishment of the 'energy and electrical grid projects or upgrades fund' and replaced it with a more general tax collection mechanism.

DEFINITION

Added new definitions for 'qualified entity' and 'taxable income' to clarify what businesses must pay the tax and what income counts toward the $5,000,000 threshold.

REQUIREMENT

Added new provisions allowing taxpayers to deduct certain payments to shareholders, owners, members, or partners when calculating taxable income.

ENFORCEMENT

Added retroactivity provisions allowing the Department of Revenue to apply regulations retroactively to January 1, 2025, with specific conditions for interest and penalty waivers.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 9, 2025

Committee

(S) REFERRED TO RULES

upper

May 7, 2025

Upper · Passed

(S) Moved CSSB 92(FIN) Out of Committee

upper

Apr 2, 2025

Upper · Passed

(S) Moved CSSB 92(RES) Out of Committee

upper

Mar 14, 2025

Upper · Passed

(S) PRIME SPONSOR CHANGED - SENATE RESOURCES COMMITTEE REPLACED SENATOR YUNDT

upper

0 primary · 0 co-sponsors

What changed between versions

How they voted

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Sponsors