Section 15.55.805. Rules for 2007 mid-year statutory changes.

	(a)  Except as provided by AS 43.55.011(f), (j), (k), and (o) and by (e) of this section, the tax levied on a producer for calendar year 2007 by AS 43.55.011, other than the tax levied by AS 43.55.011(i), is the sum of the tax calculated under (b) of this section for the period after December 31, 2006, and before July 1, 2007, and the tax calculated under (c) of this section for the period after June 30, 2007, and before January 1, 2008.  
	(b)  For purposes of (a) of this section, the tax for the period after December 31, 2006, and before July 1, 2007, is the sum of  
		(1) 22.5 percent of the production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1), as the provisions of that paragraph read on June 30, 2007, but substituting in that calculation the gross value at the point of production of the oil or gas, as applicable, produced during the first six months of the calendar year in place of the entire calendar year and the lease expenditures, as adjusted, for the first six months of the calendar year in place of the entire calendar year; and  
		(2) the sum, over the first six months of the calendar year, of the amounts calculated for each month under AS 43.55.011(g), as the provisions of that subsection read on June 30, 2007.  
	(c)  For purposes of (a) of this section, the tax for the period after June 30, 2007, and before January 1, 2008, is the sum of  
		(1) 25 percent of the production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) as amended by sec. 54, ch. 1, SSSLA 2007, but substituting in that calculation the gross value at the point of production of the oil or gas, as applicable, produced during the last six months of the calendar year in place of the entire calendar year and the lease expenditures, as adjusted, for the last six months of the calendar year in place of the entire calendar year; and  
		(2) the sum, over the last six months of the calendar year, of the tax amounts determined for each month under AS 43.55.011(g) as repealed and reenacted by sec. 17, ch. 1, SSSLA 2007.  
	(d)  For purposes of  
		(1) paragraphs (b)(1) and (c)(1) of this section, in the case of a unit subject to AS 43.55.165(j) and (k), the lease expenditures, other than qualified capital expenditures, for each six-month period of 2007 are equal to one-half of the lease expenditures, other than qualified capital expenditures, determined under AS 43.55.165(j) and (k) for calendar year 2007;  
		(2) paragraphs (b)(2) and (c)(2) of this section, monthly production tax values are calculated using 1/6 of the lease expenditures for the respective six-month period of 2007 and an appropriate monthly share, as determined using an acceptable method under 15 AAC 55.192, of the producer's costs of transportation for the respective six-month period or, at the producer's option, of the producer's costs of transportation for the entire calendar year; however, the producer has the option of using a monthly share of the producer's costs of transportation for the entire calendar year only if actual costs, rather than reasonable costs, of transportation are deductible for the last six months of 2007 under AS 43.55.150(a) and (b).  
	(e)  The maximum amount of tax provided by AS 43.55.011(j) and (k) is determined separately for the first six months and the last six months of 2007, based on the amount of taxable gas or oil, respectively, produced from the lease or property during the applicable six-month period rather than during the entire calendar year. The maximum amount of tax provided by AS 43.55.011(o) is determined only for the last six months of 2007, based on the amount of taxable gas produced from the lease or property during the last six months of 2007. The minimum amount of tax provided by AS 43.55.011(f) is determined separately for the first six months and the last six months of 2007, but with reference to the average price per barrel for ANS for sale on the United States West Coast for the entire calendar year.  
	(f)  The limitation in AS 43.55.023(a)(1) that not more than half of a tax credit under AS 43.55.023(a) may be applied for a single calendar year applies only to tax credits for qualified capital expenditures that are incurred after June 30, 2007.   
	(g)  A tax credit under AS 43.55.023(b) that is applied against a tax levied for calendar year 2007 is 20 percent of the amount of the carried-forward annual loss.   
	(h)  For purposes of determining tax credits under AS 43.55.023(b) based on lease expenditures incurred during 2007, a carried-forward annual loss for the  
		(1) first six months of 2007 is the amount of adjusted lease expenditures that was not deductible in calculating production tax values under (b)(1) of this section, and the tax credit rate applicable to the carried-forward annual loss is 20 percent;  
		(2) last six months of 2007 is the amount of adjusted lease expenditures that was not deductible in calculating production tax values under (c)(1) of this section, and the tax credit rate applicable to the carried-forward annual loss is 25 percent.  
	(i)  The provision of AS 43.55.023(d) for issuance of two transferable tax credit certificates and postponement of use of the credit shown on the second of the two certificates applies only to tax credits based on expenditures incurred after June 30, 2007, and for which a transferable tax credit certificate had not been issued before December 20, 2007.  
	(j)  For purposes of calculating the gross value at the point of production of oil or gas produced during the last six months of 2007, the lower of actual costs of transportation or reasonable costs of transportation is determined under AS 43.55.150(b) for the six-month period after June 30, 2007, and before January 1, 2008.  
	(k)  The provisions of 15 AAC 55.223 and 15 AAC 55.224 are applied respectively for the first six months and the last six months of 2007, using production tax values, adjusted lease expenditures, and determinations of the maximum amount of tax provided by AS 43.55.011(j), (k), and (o) for the applicable six-month period instead of for the calendar year.  
	(l)  For calendar year 2007, the exclusion from lease expenditures provided by AS 43.55.165(e)(18) is determined separately for the first six months and the last six months of the calendar year, based on the expenditures incurred during the respective six-month period and the total taxable production during the respective six-month period.  

Authorities

43.05.080;43.55.011;43.55.023;43.55.110;43.55.150;43.55.160;43.55.165

Notes

Reference

15 AAC 55.800

Authority

AS 43.05.080 AS 43.55.011 AS 43.55.023 AS 43.55.110 AS 43.55.150 AS 43.55.160 AS 43.55.165 Sec. 73, ch. 1, SSSLA 2007 Sec. 74, ch. 1, SSSLA 2007

History

Eff. 10/21/2009, Register 192