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Committee Begins Hearings on Oil Tax Plan
A special Senate committee is beginning work on Gov. Sean Parnell's plan to cut oil production taxes.
JUNEAU, Alaska (AP) - A special Senate committee is beginning work on Gov. Sean Parnell's plan to cut oil production taxes.
Sen. Peter Micciche says his committee plans to pass the bill on to Senate Resources by Feb. 7. Industry testimony is planned for next week in his committee.
The administration was scheduled to give an overview of Parnell's plan Tuesday.
Parnell has proposed overhauling Alaska's oil tax structure, with the goal of making Alaska more competitive and encouraging new production. The plan would scrap the progressive surcharge companies have said is a disincentive to new investment and revamp a suite of tax credits, focusing on companies that produce new oil on the North Slope.
Democrats say the plan could cost the state billions of dollars a year when oil prices are high.