KEEPING IN TOUCH
Phone: (907) 465-3892
Toll-Free: (866) 465-3892
Address:
State Capitol
, Room
418,
Juneau, AK 99801
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CLICK HERE FOR SUMMER FUN:
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2nd Special Session Ends in Compromise
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Close to midnight this last Saturday, July 15th, the House & Senate passed a compromise version of House Bill 111, finally reaching middle ground on oil & gas tax credit reform.
The biggest takeaway from this new legislation was an immediate end to the cash credit system, estimated to save the state $150 - $200 million per year, over the next 10 years. With some limitations, companies will instead be able
to claim tax deductions once a field starts producing oil.
Although a tough decision, this change ultimately serves to re-establish critical fiscal stability for both the State and the industry. The former credit system had proven unsustainable in Alaska's current budget climate, causing a backlog of cash payments the State simply couldn't pay. This in turn was creating an ever-increasing liability for the State, while negatively impacting financing for smaller oil companies, putting their projects at risk.
I do not believe removing the cash credits will significantly curtail investment or endanger jobs.
It's important to note that despite adjustments to the cash credit system, HB111 largely leaves in place the current oil tax structure (known as SB 21), which has seen a 3% increase in oil production even in this low price environment. As we know, a continued increase in oil production is vital to our long-term fiscal plans.
Although it took a lot of different viewpoints coming to the table with intense negotiation, I was heartened to see my colleagues come to an agreement on this issue.
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Capital Budget Coming Soon
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While the end is certainly near, I'm afraid there's still more work to be done by the Legislature -- and it needs to happen soon. The FY18 Capital Budget (SB23) still needs to pass before the start of the federal fiscal year (October 1st) in order to prevent the loss of over a billion dollars in federal funding.
Thankfully, both House Majority and Senate Majority leadership have expressed strong support for coming to an agreement on the capital budget by the end of this month, so I'm confident we'll see action taken very soon.
Passage of the capital budget is critical to ensure vital construction projects move forward, the protection of jobs in the contracting industry, and stability for the public, local economy and Alaska's business community.
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Proud to honor constituent Signe Anderson for her 23 years of skillfully serving Alaska through the Department of Law. Best of luck in retirement, Signe!
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Looking for something to do in the neighborhood this weekend? Check out the 2nd annual SUP n’ RUN event happening at Kincaid Park. All abilities and experience levels welcome!
When: Sunday, July 23rd, 8am gather / 9am start
Where: Little Campbell Lake @ Kincaid Park
Events include: a 2-mile paddleboard event; a 1 mile paddle followed by a 4-mile trail run; a ½ mile (untimed) costume race; and a ½ mile (untimed) paddle with dogs (all dogs must have a life jacket to participate). Entry fees apply. E
quipment rentals possible if arranged in advance.
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Looking for other events to enjoy?
Click below to check out the summer fun calendar!
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As always, please feel free to contact me with your questions, concerns and ideas at (907)269-0234 or [email protected].
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Representative Jason Grenn
House District 22
Sand Lake, Jewel Lake, West Dimond & Kincaid
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Office of Representative Jason Grenn
1500 W. Benson Blvd., Rm 418
Anchorage, AK 99503
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