Dunleavy Touts New LNG Tax-Concession Bill Amid Special Session Deadline

Alaska Governor Mike Dunleavy has introduced a new bill aimed at incentivizing the construction of a natural gas pipeline, dubbed the AK LNG project. The legislation proposes to nearly eliminate property taxes on the pipeline's operator and impose a small corporate income tax on certain private oil- and gas-producing corporations.

The governor characterized the bill as a compromise between conflicting philosophies on oil and gas taxes that he wants lawmakers to pass during the ongoing special session, which is set to end in less than two weeks. Dunleavy argued that such concessions are essential for the project's success and would help the AK LNG project secure financing.

The new bill contains a concession to a tax previously sought by the Senate majority, but it also imposes a 2% corporate income tax on petroleum-producing S corporations - significantly lower than the tax rates proposed in earlier legislation. The governor emphasized that he has never been in favor of new taxes on Alaska's producers and still isn't.

However, not all lawmakers are convinced by the proposal. Senate leaders expressed skepticism about the need for further concessions to help Glenfarne's plan, stating that a decision of this scale deserves careful consideration rather than hasty passage. Rep. Zack Fields also cautioned against rushing complex oil and gas legislation without thorough evaluation.