A Citizen’s Guide

The Senate Finance Committee hit a minor snag this morning when it took up the governor’s oil tax legislation.

Kenai Republican Tom Wagoner, chairman of Senate Resources, asked legislative legal to make some changes to his committee’s substitute of the bill before letting it go to Finance.

The changes included moving the transitional tax deduction that allows companies to recoup investments made since 2001 to the section of the bill dealing with tax credits.

That simple change is worth $250 million to the state because deductions are worth 25 percent while tax credits are worth 20 percent.

Version “C” of Senate Bill 305 includes the changes, but version “L” that was picked up by Sen. Lyda Green’s committee did not.

It doesn’t matter which version Finance adopts as long as they make sure both versions match.