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Alaska Senate Approves Oil Tax, Faces House Uncertainty

3/27/2026

Center

Senate Votes Tax

On March 25, 2026, the Alaska Senate voted 11-8 to apply corporate income tax to privately held oil companies, including Hilcorp.
The amendment by Sen. Forrest Dunbar would generate over $100 million annually for state revenue.
Supporters say it ends Hilcorp's unfair advantage.
It now faces uncertainty in the House with mixed opinions about its impact on the economy and energy supply.

Right

Senate Reviews LNG Tax

The Alaska Senate Resources Committee reviewed SB 275, proposing a 15-cent-per-MMBtu processing surcharge on LNG exports.
The bill aims to adjust taxation for natural gas projects.
The bill was set aside due to insufficient financial data.
Sen. Cathy Giessel emphasized the need for thorough analysis ahead of March 23, 2026 discussions.
Gaffney Cline's modeling indicated potential annual revenue of $150–$160 million, but raised concerns about competitiveness with Canadian projects.

History

Historical Context

The 1913 enactment of the 16th Amendment allowed federal income tax, reshaping state revenue systems. Alaska, heavily reliant on oil revenues, has faced budget challenges due to fluctuating oil prices. The recent Alaska Senate vote to tax privately held oil companies like Hilcorp aims to generate over $100 million annually, reflecting ongoing debates about resource taxation and economic equity in the state.

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Senate Votes Tax

On March 25, 2026, the Alaska Senate voted 11-8 to apply corporate income tax to privately held oil companies, including Hilcorp.
The amendment by Sen. Forrest Dunbar would generate over $100 million annually for state revenue.
Supporters say it ends Hilcorp's unfair advantage.
It now faces uncertainty in the House with mixed opinions about its impact on the economy and energy supply.

1 / 3