Section 15 AAC 55.335 - Additional nontransferable credits(b) For a calendar year during which two or more producers that qualify under AS 43.55.024(e) are succeeded through merger, acquisition, or a similar transaction by a single producer that qualifies under AS 43.55.024(e), (1) each of the predecessor producers may take that percentage of an entire credit to which it is otherwise entitled under AS 43.55.024(a) or (c) that equals the percentage of days in the calendar year during which those producers are separate entities(2) the successor producer may take that percentage of a single entire credit to which it is otherwise entitled under AS 43.55.024(a) or (c) that equals the percentage of days in the calendar year during which that producer is the successor to the predecessor producers.(c) An application under AS 43.55.024(e) must be filed with the department, as part of the statement described in AS 43.55.030(a), on or before March 31 of the calendar year after the calendar year for which the producer seeks the department's determination that the producer was qualified under AS 43.55.024(a) or (c). The application must include (1) the producer's certification that the producer's operation in the state or its ownership of an interest in a lease or property in the state as a distinct producer is not for the purpose of dividing among multiple producer entities any production tax liability under AS 43.55.011(e) that would otherwise be attributed to a single producer; (2) information requested on the application form prescribed by the department concerning the producer's transactions or relationships affecting (A) interests in leases or properties in the state;(B) rights to oil or gas production from leases or properties in the state; and(C) interests in other business entities or interests of other business entities in the producer; and(3) other pertinent information required by the department.(d)AS 43.55.024(i) applies only to oil produced from a lease or property north of 68 degrees North latitude.(e) Subject to (g) of this section, the total amount of a producer's tax credits for a calendar year under AS 43.55.024(j) is determined by (1) calculating for each month of the calendar year the number of barrels of oil taxable under AS 43.55.011(e) that the producer produces during the month from leases or properties north of 68 degrees North latitude and, (A) for oil produced before January 1. 2017, that does not meet the criteria in any of AS 43.55.160(f)(1), (2), or (3); for purposes of this subparagraph, oil does not meet the criteria in AS 43.55.160(f)(3) if (i) the producer has not reduced the gross value at the point of production of the oil under AS 43.55.160(f)(3); and(ii) the oil is not included in the volume of oil the producer is required under 15 AAC 55.212(1) to determine qualifies for a reduction in gross value at the point of production under AS 43.55.160(f)(3);(B) for oil produced after December 31, 2016 that does not receive a reduction in the gross value at the point of production under AS 43.55.160(0 or (g);(2) multiplying for each month of the calendar year the number of barrels of oil calculated for the month under (1) of this subsection by the applicable dollar amount per barrel for the month under AS 43.55.024(j)(1) - (9) using the average gross value at the point of production for the month calculated under (f) of this section;(3) summing over all months of the calendar year the products calculated for each month under (2) of this subsection.(f) For purposes of AS 43.55.024(j) and of (e) of this section, the average gross value at the point of production for a month is calculated by (1) calculating the total gross value at the point of production of the oil taxable under AS 43.55.011(e) that the producer produces during the month from leases or properties north of 68 degrees North latitude and, (A) that does not meet the criteria in any of AS 43.55.160(f)(1), (2), or (3); for purposes of this subparagraph, oil does not meet the criteria in AS 43.55.160(f)(3) if (i) the producer has not reduced the gross value at the point of production of the oil under AS 43.55.160(f)(3); and(ii) the oil is not included in the volume of oil the producer is required under 15 AAC 55.212(1) to determine qualifies for a reduction in gross value at the point of production under AS 43.55.160(f)(3);(B) for oil produced after December 31, 2016 that does not receive a reduction in the gross value at the point of production under AS 43.55.160(f) or (g);(2) dividing the amount calculated under (1) of this subsection by the number of barrels of oil calculated for the month under (e)(1) of this section.(g) If a producer's application of tax credits other than a tax credit under AS 43.55.024(j) against a tax levied by AS 43.55.011(e) reduces the producer's tax liability to the amount calculated for a calendar year after 2013 under AS 43.55.011(f) or less, the producer may not apply a tax credit under AS 43.55.024(j) against the tax for that calendar year. If a producer's application of tax credits other than a tax credit under AS 43.55.024(j) against a tax levied by AS 43.55.011(e) does not reduce the producer's tax liability to the amount calculated for a calendar year after 2013 under AS 43.55.011(f) or less, the producer may apply against the tax no more than the portion of a tax credit under AS 43.55.024(j) that is equal to the difference between the amount calculated for the calendar year under AS 43.55.011(f) and the tax liability after reduction by application of tax credits other than a tax credit under AS 43.55.024(j). In calculating that reduction, if the tax credits to be applied include one or more tax credits subject to a percentage limitation under AS 43.55.023(e), calculation of the percentage limitations under 15 AAC 55.375(a) must take account of any tax credit or portion of a tax credit under AS 43.55.024(j) that the producer will apply against the producer's tax, to the extent allowed under this subsection. (h) As applied only to oil produced by a municipal entity, "oil taxable under AS 43.55.011(e)" in (e) and (f) of this section means oil produced from a lease or property in the state that the municipal entity 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.Eff. 5/3/2007, Register 182; am 10/21/2009, Register 192; am 12/25/2013, Register 208, January 2014; am 3/1/2017, Register 221, April 2017; am 1/1/2022, Register 240, January 2022 Authority:AS 43.05.080
AS 43.55.011
AS 43.55.024
AS 43.55.030
AS 43.55.110
AS 43.55.160