Procedures for applying certain tax credits

# (a)

To apply a tax credit allowed under AS 43.55.023 or 43.55.024 against a tax liability under AS 43.55.011, a producer must file, no later than March 31 of the year following the calendar year for which the tax was levied, a claim for the tax credit in the statement described in AS 43.55.030(a), setting out the information required by the department on a form prescribed by the department as part of that statement.

# (b)

In addition to other information required by the department, a claim under this section for a tax credit for a qualified capital expenditure under AS 43.55.023(a), carried-forward annual loss under AS 43.55.023(b), as the provisions of that subsection read before January 1, 2018, or well lease expenditure under AS 43.55.023( l) must include

# (1)

a description and accounting of the expenditures for which the credit is claimed, including a summary of the types of expenditures and the month and calendar year each expenditure was incurred;

# (2)

a description of the lease or property or other land where the exploration, development, or production activities with respect to which the relevant expenditures were incurred took place, and if the producer is not the operator, identification of the operator;

# (3)

a list of any partners or other entities that shared in costs of which the relevant expenditures incurred by the producer are the producer's share, providing the respective shares of the partners or other entities, including the producer, and identifying the operator of the venture;

# (4)

identification of the custodians of the accounting records for the relevant expenditures, including the general ledgers, contracts, progress billings and invoices, and joint interest billings;

# (5)

if applicable, the producer's written

(A) agreement required under AS 43.55.023(a)(2), as the provisions of that paragraph read on June 30, 2007, in the case of an expenditure incurred for exploration work performed before July 1, 2008;

(B) agreements required under AS 43.55.023(a)(2), as amended by sec. 25, ch. 1,
SSSLA 2007, or AS 43.55.023( l)(2), and documentation that the producer has submitted to the Department of Natural Resources all data referred to

(i) in AS 43.55.023(a)(2)(B), as amended by sec. 25, ch. 1, SSSLA 2007, in the case of a claim for a tax credit under AS 43.55.023(a) for an expenditure incurred for exploration work performed after June 30, 2008;

(ii) in AS 43.55.023( l)(2)(B), in the case of a claim for a tax credit under
AS 43.55.023( l) for a well lease expenditure;

# (6)

in the case of a

(A) claim for a tax credit under AS 43.55.023(a) for a qualified capital expenditure, the producer's certification that a tax credit has not been and is not being taken for the expenditure under AS 43.55.023( l) or 43.55.025, except as provided under (c) of this section;

(B) claim for a tax credit under AS 43.55.023( l) for a well lease expenditure, the producer's certification that a tax credit has not been and is not being taken for the expenditure under AS 43.55.023(a) or 43.55.025, except as provided under (c) of this section;

# (7)

copies of the applicant's most recent audited financial statements, including the auditor's opinion, notes to the audited financial statements, and information related to any contingent liabilities that may be owed by the applicant to another party; and

# (8)

any unresolved notices of violations, liens filed, or notices of assessment of or liability for tax, interest, penalty, fee, rental, royalty or other charge of any kind issued to the applicant related to an applicant's oil or gas exploration, development, or production in the state.

# (c)

A producer that files an application under 15 AAC 55.356 for an alternative oil and gas exploration tax credit under AS 43.55.025 for an expenditure that the producer believes is a qualified capital expenditure may file a contingent claim under this section for a qualified capital expenditure tax credit under AS 43.55.023(a) or ( l), if and to the extent that the expenditure later is determined not to qualify for a tax credit under AS 43.55.025 but is determined to qualify for a tax credit under AS 43.55.023(a).

# (d)

In addition to other information required by the department, a claim under this section for a tax credit shown on a transferable tax credit certificate under AS 43.55.023(e) must

# (1)

identify the certificate and the person that transferred the certificate to the producer claiming the tax credit; and

# (2)

state the percentage, if any, of the tax credit that was subtracted in calculating the amount of an installment payment for each month under 15 AAC 55.381(b).

# (e)

Repealed 3/1/2017.

# (f)

Repealed 3/1/2017.

# (g)

Repealed 3/1/2017.

# (h)

A producer that files a claim for a tax credit under this section shall retain and make available to the department upon request all financial and technical source records supporting the credit claimed. If the credit claimed relates to an exploration well or to geological or geophysical exploration, the records to be retained and made available must include drill rig logs, daily drilling logs, and activity logs.
(Eff. 5/3/2007, Register 182; am 10/21/2009, Register 192; am 9/14/2012, Register 203; am 3/1/2017, Register 221; am 12/6/2018, Register 228; am 9/20/2020, Register 235) Statutory Authority:
Authority:
AS 43.05.080 AS 43.55.025 AS 43.55.110
AS 43.55.023 AS 43.55.030
AS 43.55.024 AS 43.55.040