Alaska Administrative Code (Last Updated: January 12, 2017) |
Title 15. Revenue. |
Chapter 15.21. Oil and Gas Corporate Income Tax. |
Article 15.21.1. Application of Tax. |
Section 15.21.270. Deduction for exploration costs.
Latest version.
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(a) A taxpayer's costs (excluding all general overhead and administrative expense allocated to the exploration) for oil and gas exploration on land in the state before the taxpayer has any production interest in that land constitute a deduction in determining the taxpayer's taxable production income for the earlier of (1) the year in which the permit or other authorization to enter that land to conduct that exploration expires without the taxpayer's having by then acquired a production interest in that land or (2) the year the taxpayer acquires a production interest in that land; except that the drilling costs for a well drilled in the course of that exploration may be deducted in determining the taxpayer's taxable production income for only that year in which the well is completed or abandoned. (b) A taxpayer's exploration costs incurred in a project involving land both within and outside the state and in which the taxpayer then has no production interest should be allocated on the basis of relative acreage involved in the project. The department may authorize or require such an allocation to be on another basis if that is more appropriate than using acreage.
Authorities
43.05.080;43.19.010;43.21.020;43.21.090
Notes
Authority
AS 43.05.080 AS 43.19.010 Art. IV, _ 18, Ak Const. AS 43.21.020 AS 43.21.090History
Eff. 2/22/79, Register 69