Tax Credits are an investment in our future.
And they’re working.
Tax credits are incentives that encourage certain behaviors by reducing a person’s or company’s tax liability. In the same way that people can earn a tax refund from the IRS for child care credits or student loan interest, the state attracts companies to Alaska by offering credits for investments. Tax credits are, in essence, the State of Alaska holding up a sign to the world that says “We are open for business.”
Oil companies can operate anywhere in the world, and we want them to invest here in Alaska, to hire Alaskans, to spend billions of dollars in our economy, and to help fill the Trans Alaska Pipeline System.
Tax credits have attracted significant investments from companies new to Alaska, such as Caelus, BlueCrest Energy and Hilcorp. Without credits, Southcentral might still face the prospect of rolling blackouts due to a shortage of natural gas production in Cook Inlet.Thanks to tax credits, local utilities have security of supply for several years to come.
Tax credits also help to counter Alaska’s high cost challenges and spur new exploration and continued investment in the state’s vast natural resources. All Alaskans see immediate economic benefits in spending and jobs, as well as from additional production tax revenue, royalties, and other tax revenue streams. Changing or eliminating tax credits will impact investment and activity, and is not a way to get more oil in the pipeline.
Tax credits are working for Alaska, and are an investment in the next generation of Alaskans.