The Latest: House narrowly passes oil tax, credit overhaul

JUNEAU, Alaska – The Latest on Alaska legislative action (all times local):

4:50 p.m.

The Alaska House has narrowly passed an overhaul of Alaska’s oil tax and credit system.

A Department of Revenue analysis shows the bill would eliminate cashable tax credits for the North Slope and result in a tax increase at oil prices between about $50 and $100 per barrel, among other things.

Oil has been around $50-55 a barrel for months.

The bill passed 21-19. Independent Rep. Jason Grenn joined minority House Republicans in voting against it.

Supporters of the bill say tax credits have become unaffordable. They say the bill addresses that and problems within the tax system.

Critics say the bill is too expansive and fear it will hurt the oil industry.

Reconsideration was given, meaning the measure could be voted on again before heading to the Senate.

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1:25 p.m.

A state House committee is seeking to force the Senate into acting on a fiscal plan that includes more than tapping Alaska oil-wealth fund earnings to help close the state’s deficit.

The House Finance Committee has added to oil-wealth fund legislation language stating it would only take effect if the Legislature this year passes a broad-based tax and the version of an oil tax and credit bill that passes the House.

Committee Co-chair Paul Seaton says the language shows the House majority’s commitment to a full fiscal plan.

But Rep. Lance Pruitt characterized it as a brazen attempt to hold the Senate “hostage.”

Senate leaders have urged House approval of structured draws from Alaska Permanent Fund earnings to help pay for government as a large step toward addressing the deficit. They so far have shown little interest in taxes.