Alaska Administrative Code — Title 15 (Revenue)

15 AAC 55.381

Subtraction of tax credits in calculation of installment payment of

Official textakleg.govlast amended Jan 01, 2022

estimated tax for oil and gas produced after June 30, 2007.

# (a)

For purposes of the

# (1)

calculation required under AS 43.55.020(a)(5) or (7), the amount of the tax credits that are allowed by law to be applied against the tax levied by AS 43.55.011(e) for a calendar year does not include any amount of a tax credit that the producer transfers to another person;

# (2)

installment payment required under AS 43.55.020(a)(3), a tax credit is not deductible in calculating the amount of the payment.

# (b)

The provisions of AS 43.55.020(a)(5) and (7) prescribing a limit of 1/12 of certain tax credits do not apply to a tax credit shown on a transferable tax credit certificate that has been issued under AS 43.55.023(d) or a tax credit for which a production tax credit certificate has been issued under AS 43.55.025(f). Subject to the provisions of AS 43.55.020(a)(5) and (7) that the amount of an installment payment may not be less than zero and subject to the 80 percent limitation provided under AS 43.55.023(e), in calculating the amount of an installment payment under AS 43.55.020(a)(5) or (7) for a month, a producer that owns a transferable tax credit certificate or production tax credit certificate may subtract any percentage, irrespective of whether it is equal to or greater than 1/12, of the credit that was not previously subtracted, to the extent that the credit is allowed by law to be applied against the tax levied by AS 43.55.011(e) for the calendar year.

# (c)

If in calculating the amount of an installment payment for a month required under AS 43.55.020(a)(5) or (7), a producer is unable to subtract the full amount of tax credits described in AS 43.55.020(a)(5) or (7), the unused amount of tax credits is not considered an overpayment, does not accrue interest, and except as provided under (b) of this section may not be carried forward to or used in calculating an installment payment for a future month. The amount of tax credits subtracted in calculating the amount of an installment payment does not affect the availability of tax credits to be applied as allowed by law against an annual tax liability under AS 43.55.011 in calculating the amount due under AS 43.55.020(a)(4).

# (d)

This section applies to oil and gas produced after June 30, 2007.

# (e)

Subject to the provisions of AS 43.55.020(a)(5) and (7) that the amount of an installment payment may not be less than zero, and subject to the provision of AS 43.55.024(i) that a tax credit authorized by that subsection may not reduce a producer's tax liability for a calendar year under AS 43.55.011(e) below zero, in calculating the amount of an installment payment under AS 43.55.020(a)(5) or (7) for each month of a calendar year, a producer may substitute the following amount for 1/12 of the tax credits under AS 43.55.024(i) that are allowed by law to be applied against the tax levied by AS 43.55.011(e) for the calendar year: the product of $5 and the number of barrels of oil produced by the producer during the month that qualify for a tax credit under AS 43.55.024(i). A producer may not make a substitution under this subsection for a month of a calendar year unless the producer does so for every month of the calendar year.

# (f)

Subject to the provisions of AS 43.55.020(a)(5) or (7) that the amount of an installment payment may not be less than zero, and subject to the provision of AS 43.55.024(j), as implemented by 15 AAC 55.335(g), that a tax credit authorized by that subsection may not reduce a producer's tax liability for a calendar year under AS 43.55.011(e) below the amount calculated under AS 43.55.011(f), in calculating the amount of an installment payment under AS 43.55.020(a)(5) or (7) for each month of a calendar year, a producer may substitute the amount calculated for the month under 15 AAC 55.335(e)(2) for 1/12 of the tax credits under AS 43.55.024(j) that are allowed by law to be applied against the tax levied by AS 43.55.011(e) for the calendar year. A producer may not make a substitution under this subsection for a month of a calendar year unless the producer does so for every month of the calendar year.
(Eff. 10/21/2009, Register 192; am 12/25/2013, Register 208; am 1/1/2022, Register 240) Statutory Authority:
Authority:
AS 43.05.080 AS 43.55.020 AS 43.55.110
AS 43.55.011 AS 43.55.024

Amendment history

Eff. 10/21/2009, Register 192; am 12/25/2013, Register 208; am 1/1/2022, Register 240

Source: official source document (full AAC Title 15 PDF)

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