A Citizen’s Guide

The House Special Committee on Oil and Gas moved a new version of Palin’s tax rewrite this afternoon after 10 days of vetting, according to a news release. The committee nixed Palin’s proposed increase in the base tax rate, but upped the progressivity surcharge to the point where the tax would bring in more money than ACES when oil is above about $80 a barrel.

According to Rep. Kurt Olson, the committee’s chair, the new plan is a better way to ensure a fair state share without scaring off company investment.

The committee kept Palin’s proposal to block tax credits on repairs to poorly maintained infrastructure, but added back in some of the credits allowed to companies for investments in previous years. The committee version would allow “clawbacks” on the last 3 years of investments instead of the last 6 in current law. Palin wanted to do away with them completely.

The revised bill now heads to the House Resources Committee, which is scheduled to start hearings Monday afternoon.