Section 15.55.375. Order of applying tax credits.

	(a)  For purposes of applying a percentage limitation under AS 43.55.023(e) or 38.05.180(i) on the use of tax credits against a tax levied by AS 43.55.011(e), a producer shall, subject to 15 AAC 55.335(g),  
		(1) first, apply all tax credits allowable against the tax levied by AS 43.55.011(e) other than credits subject to a percentage limitation under AS 43.55.023(e) or 38.05.180(i);  
		(2) second, apply a credit subject to the percentage limitation under AS 38.05.180(i) against not more than 50 percent of the remaining tax liability under AS 43.55.011(e), if any;  
		(3) third, apply a credit subject to a percentage limitation under AS 43.55.023(e) against not more than 20 percent of the balance of the remaining tax liability under AS 43.55.011(e), if any.  
	(b)  For purposes of applying a percentage limitation under AS 38.05.180(i) on the use of tax credits against the minimum tax for oil and gas produced before July 1, 2007, from leases or properties in the state north of 68 degrees North latitude determined under AS 43.55.011(f), as the provisions of that subsection read on June 30, 2007, a producer shall  
		(1) first, apply all tax credits allowable under AS 43.55.024(c) and 43.55.025 against that minimum tax liability;  
		(2) second, apply a credit subject to the percentage limitation under AS 38.05.180(i) against not more than 50 percent of the remaining minimum tax liability, if any.  
	(c)  Except as provided under (a) and (b) of this section, and subject to 15 AAC 55.335(g), a producer may apply tax credits in any order, if the producer submits with the statement required under AS 43.55.030(a) a separate schedule setting out the order in which the tax credits are applied. In the absence of that schedule, tax credits must be applied in the following order:  
		(1) first, any credit under AS 43.55.024(a);  
		(2) second, any credit under AS 43.55.024(c);  
		(3) third, for a calendar year after 2013, any credit under AS 43.55.024(i);  
		(4) fourth, any credit under AS 43.55.019;  
		(5) fifth, for a calendar year after 2013, any credit under AS 43.55.024(j);  
		(6) sixth, any credit under AS 43.55.025;  
		(7) seventh, for a calendar year before 2014, any credit under AS 43.55.023(i);  
		(8) eighth, any credit under AS 43.55.023(a);  
		(9) ninth, any credit under AS 43.55.023(l);  
		(10) tenth, any credit under AS 43.55.023(b);  
		(11) eleventh, any credit under AS 41.09.010;  
		(12) twelfth, any credit under AS 38.05.180(i);  
		(13) thirteenth, any credit under AS 43.55.023(e).  

Authorities

43.05.080;43.55.023;43.55.024;43.55.025;43.55.110

Notes

Reference

15 AAC 55.335
15 AAC 55.370

Authority

AS 43.05.080 AS 43.55.023 AS 43.55.024 AS 43.55.025 AS 43.55.110

History

Eff. 5/3/2007, Register 182; am 10/21/2009, Register 192; am 9/14/2012, Register 203; am 12/25/2013, Register 208