After the draft "House Bill 331" was passed in Alaska in May on the payment of outstanding and still expected tax credits for all natural gas and oil exploration companies, Governor Bill Walker signed the new law last week.
The new law permits the state of Alaska to issue bonds to settle debts arising from the previous tax regime. The tax credits from the state of Alaska are also an important pillar in the corporate financing of the German Oil & Gas Group. Currently around 147 million US dollars are still outstanding. Payment of tax credit claims are anticipated within the next 6 to 9 months.
This change in policy will save public funds in the long term, and offers independent oil and gas exploration companies incentives to continue investing in the industry: "We expect new jobs to be created and increased exploration activities because of this law," said Governor Walker. "Alaska's economy is on the right path thanks to the progress we have made this year in working together across all parties to advance innovative solutions, including those which have now become law."