Dunleavy's Alaska LNG Bill Hits Roadblock Over Corporate Income Tax Concerns

Alaska Governor Mike Dunleavy has introduced a new bill aimed at advancing the Alaska LNG megaproject, but legislative leaders are indicating it may not pass. The bill includes a multibillion-dollar property tax cut and a compromise on a slimmed-down expansion of the state's corporate income tax.

The Senate president and House majority leaders have expressed doubts about the bill's chances, citing concerns over the corporate income tax provision. Major Alaska business groups have also panned the proposal, arguing that it would impose too much of a burden on oil and gas companies.

Hilcorp, a major producer on the North Slope and in Cook Inlet, has expressed opposition to the bill, stating that it could impact the cost of supplying gas for the project. The Alaska Oil and Gas Association, the Alaska Chamber of Commerce, and other business groups have also criticized the proposed tax.

The governor's new bill is similar to a previous proposal that nearly passed both chambers last month but died in a tie vote in the House. The Senate president has indicated that the chamber will not reconvene to vote on the bill, citing concerns over time constraints and lack of information about the project.