Alaska Moves to Secure Huge LNG Tax Deal

Governor announces special session
The governor has called a new special session set to begin on Saturday, aiming to push forward a massive tax break for the Alaska LNG project.

Background

• Lawmakers in the Senate Finance Committee began raising the proposed tax level on Friday, pushing it above what the House approved last week.
• The Senate’s plan would double the alternative tax rate after ten years and again in 2060, switching from a high property tax to one based on gas volume.

Stakeholder Positions

• Governor Dunleavy and the project’s developer, Glenfarne, support this higher rate because they believe it will keep the project financially viable.

Timeline

• The Senate must decide by midnight Friday; if they fail, another special session will be required.
• A revised bill with the increased tax was sent to a Senate floor vote after unanimous approval in the committee.
• The special session will start at 10 a.m. Saturday, June 20.