On the same day they killed the centerpiece of Gov. Bill Walker’s 13-point plan to fix Alaska’s deficit, members of the Alaska House voted to approve a subsidiary element of that plan.
House Bill 246 was approved in a 30-6 vote of the Alaska House on Friday.
If approved in the Senate, the measure will allow the Alaska Industrial Development and Export Authority to set up a new low-interest loan program to benefit oil and gas development.
Companies would have the option of taking loans from AIDEA or receiving tax credits from the existing oil and gas subsidy program. They can’t do both for the same piece of infrastructure.
“When you’ve got limited money, you’ve got to figure out where you can spend it,” said Rep. Les Gara, D-Anchorage, as he spoke in favor of the bill.
Rep. Tammie Wilson, R-North Pole, voted against the measure because she feels it gives the state an incentive to veto tax credit payments to companies. By vetoing payments for already-issued credits, the Legislature or the governor could pressure companies into using the loan program instead of the state’s direct subsidy.
“The state will be taking advantage of something that we caused,” she said.
The measure’s passage in the Senate is not assured. The Legislature’s special session will end no later than Tuesday, and the Senate is not expected to convene again until Sunday.
