JUNEAU, Alaska (AP) – Gov. Bill Walker has signed into law a bonding bill that has already drawn a legal challenge.
The bill proposes establishing a new state corporation that would be empowered to sell up to $1 billion in bonds to pay off the state’s remaining oil tax credit obligations.
The Legislature last year voted to end the tax credit program geared toward small producers and developers, saying it had become unaffordable. Prior to passage of this bill, the state had been making annual payments toward the obligation.
Walker’s office says this bill will save state government money in the long run. And Walker says the state expects to see new jobs and more exploration activity due to the legislation.
A lawsuit filed last month challenges the bill’s constitutionality.
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