JUNEAU, Alaska (AP) – The Alaska House has passed legislation to allow for bonding to pay the state’s remaining oil and gas tax credit obligations.
Gov. Bill Walker’s bill would create a new bond corporation authorized to sell up to $1 billion in bonds to pay off outstanding credits.
It passed the House 23-15, and next goes to the Senate.
Supporters saw it as a way to honor the state’s obligation. Critics cast it as risky.
There were legal questions raised with the bill, but Attorney General Jahna Lindemuth said she saw no constitutional problems.
In a legal opinion, she said the Legislature retains authority to decide whether to appropriate money toward paying debt service on the bonds.
Lawmakers last year voted to end the credit program geared toward small producers and developers, saying it had become unaffordable.
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