JUNEAU — A bicameral legislative conference committee on Thursday advanced a substitute bill aimed at reshaping the tax structure for the proposed Alaska LNG megaproject, moving the legislation to the full House and Senate for consideration during the special session.
The substitute measure would apply the state corporate income tax to private oil and gas producers and transporters while exempting the Alaska LNG project itself from that tax. It would also eliminate property taxes on the project and replace them with a smaller tax tied to gas volumes.
What lawmakers voted
The conference committee advanced the substitute on a 4-2 vote along caucus lines. It was released by the committee shortly before the vote and sent to each chamber for possible floor action; it was not immediately clear when the House and Senate would convene to take it up. The second special session on the topic is scheduled to end Sunday.
Stakes for Alaska
Backers of the Alaska LNG project, including Gov. Mike Dunleavy, argue the pipeline and liquefaction complex could supply in-state natural gas that is expected to be in short supply from Cook Inlet and deliver export revenue, supporting construction jobs and new state income. Opponents, and some business groups, have expressed concern about tax preferences and fiscal impacts.
- Estimated project cost: up to $55 billion
- Planned in-state gas delivery: as early as 2029
- LNG exports timeline: potentially beginning in 2031
Reactions and concerns
Major oil, gas and business associations criticized the committee’s substitute shortly after it was advanced, arguing that imposing the corporate income tax on private producers while exempting the pipeline could harm energy supply and business climate. Supporters contend the tax structure is designed to make the project financially viable while securing long-term gas for Alaskans and revenue for the state.
| Tax element | Proposal in substitute |
|---|---|
| Corporate income tax | Applies to private producers/transporters; exempt for Alaska LNG project |
| Property tax | Eliminated for the project; replaced by a smaller volume-based tax |
The Alaska LNG initiative envisions moving North Slope gas through an ~800-mile pipeline to supply Alaskans and to support liquefaction and exports. Proponents say the project could generate hundreds of millions of dollars annually in state revenue and thousands of construction jobs if it proceeds; opponents warn about fiscal trade-offs and impacts on private industry.
Lawmakers in both chambers were scheduled to hold floor sessions Thursday; the committee’s action sets up a final decision before the special session ends.
Nora Kallio, News Block — Juneau
