Alert The Tax Division offices will be closed on Friday, November 24 for a mandatory furlough day and will reopen Monday, November 27. Revenue Online will remain available to conduct business. Should you need assistance during this time, please call the mainline of the respective office location: Anchorage at 907. 269-6620 or Juneau at 907.465.2320, and leave a message.


Oil & Gas Production Tax

Frequently Asked Questions





Sections:
  • Oil & Gas Production Tax FAQ



  • Oil & Gas Production Tax FAQ

    How do I enroll to become a user in the Tax Division’s Revenue Online system?
    Where do I find the forms I need to complete for reporting oil and gas production tax and/or to apply for credits?
    I am an explorer with no oil or gas production.  Do I need to file monthly or annually?
    I am a producer relying on the unit operator’s filing.  Do I need to file a return?
    I’m just a small producer on the North Slope (350 barrels).  Am I required to file annually?
    I qualify for the small producer credit and am under the cap to pay tax on my production. Do I need to file a return and submit backup information?
    How do I know what costs qualify as lease expenditures?
    How do I submit supporting documentation (required by the statutes and regulations) to the Tax Division?
    How can I submit “large” files to the Tax Division?
    How do I receive a credit for my exploration expenses?
    What is the general process or timeline to receive my tax credit certificate?
    What oil and gas production tax credits can be issued as certificates and redeemed for cash from the State?


  • How do I enroll to become a user in the Tax Division’s Revenue Online system?

  • Follow this link to enroll in Revenue Online:

    https://online-tax.alaska.gov

    If you have questions or need help, you may email the oil and gas tax technicians at dor.tax.production@alaska.gov for further guidance.

  • Where do I find the forms I need to complete for reporting oil and gas production tax and/or to apply for credits?

  • All credit applications, monthly reporting and annual filing of the oil and gas production tax have been incorporated into the Tax Division’s new Revenue Online (ROL) system. After you enroll in ROL, you will be able to file monthly reports, file annual tax returns, apply for credits, make payments, and view your account online.

    There are very few “Non-ROL” forms for the oil and gas production tax:
    • 2014 Monthly Information Report
    • 2003 Cost of Capital (ROI) Model and Instructions
    • Oil and Gas Production Cost Forecast Instructions

    The following forms should be submitted as attachments in ROL, as applicable:
    • Alaska Producers’ Affidavit
    • Notice of Assignment of Tax Credit Certificates under AS 43.55.029
    • Credit Application Expenditure Support and Instructions
    • Oil and Gas Production Tax Credits Lessor Data Release Form
    • Alaska Oil and Gas Designated Applicant Page

    The above listed forms are located on the Tax Division’s website:

    http://www.tax.alaska.gov/programs/programs/forms/index.aspx?60650

  • I am an explorer with no oil or gas production.  Do I need to file monthly or annually?

  • Yes. AS 43.55.030(e) requires "an explorer or producer that incurs a lease expenditure under AS 43.55.165 or receives a payment or credit under AS 43.55.170 ..." to file a "statement" with the Department. The monthly and annual forms may be accessed through the Tax Division’s Revenue Online portal:

    https://online-tax.alaska.gov

  • I am a producer relying on the unit operator’s filing.  Do I need to file a return?

  • Yes. AS 43.55.030(e) requires "an explorer or producer that incurs a lease expenditure under AS 43.55.165 or receives a payment or credit under AS 43.55.170 ..." to file a "statement" with the Department. The monthly and annual forms may be accessed through the Tax Division’s Revenue Online portal:

    https://online-tax.alaska.gov

  • I’m just a small producer on the North Slope (350 barrels).  Am I required to file annually?

  • Yes. AS 43.55.030(e) requires "an explorer or producer that incurs a lease expenditure under AS 43.55.165 or receives a payment or credit under AS 43.55.170 ..." to file a "statement" with the Department. The monthly and annual forms may be accessed through the Tax Division’s Revenue Online portal:

    https://online-tax.alaska.gov

  • I qualify for the small producer credit and am under the cap to pay tax on my production. Do I need to file a return and submit backup information?

  • Yes. AS 43.55.030(e) requires "an explorer or producer that incurs a lease expenditure under AS 43.55.165 or receives a payment or credit under AS 43.55.170 ..." to file a "statement" with the Department. The monthly and annual forms may be accessed through the Tax Division’s Revenue Online portal:

    https://online-tax.alaska.gov

  • How do I know what costs qualify as lease expenditures?

  • See AS 43.55.165 and the related regulations issued by the Department here.

  • How do I submit supporting documentation (required by the statutes and regulations) to the Tax Division?

  • Supporting documentation may be added as "Attachments" when filing the monthly report and annual return. The Return Info screen has a place to add attachments – see the left-hand sidebar. There is a link to "Add" attachments.

    Select Add and enter the file type from a dropdown menu, a brief description of the file, and attach the file. Click Save to attach the file to your report or return.

    The attached file(s) will display in the "Attachments" list at the bottom of the Return Info screen.

  • How can I submit “large” files to the Tax Division?

  • The State of Alaska email systems accommodate messages under 20MB in total size and receiving email systems may have even smaller message size limits. Revenue Online accepts files up to 2GB.

    The Department has an option for transferring files from 2GB to 8GB quickly and securely. This new service is called ZendTo.

    For ad-hoc file transfers between individuals, use drop.state.ak.us. This application accepts uploaded files and sends one-time links to these files for download by email. To use this service, go to https://drop.state.ak.us/drop.

      Authenticated State of Alaska users may:
    • Upload files and have those links sent by email to anyone.
    • Create an upload request which can be sent by email to anyone.
    • Download files which have been left for them.

      Unauthenticated users may:
    • Upload files and have those links sent to @alaska.gov email addresses.
    • Download files for which they have the confirmation code.

    By default, notification emails are sent to the uploader when files are downloaded. Files may be removed by the uploader and are automatically removed from the server after four days.

      Cons:
    • The service is not suitable for automated processes.
    • Transfer is somewhat slower than standard File Transfer Protocol (FTP).
    • Files are not encrypted while stored.
    • Limited to files of 8GB or smaller.
    • Support for files larger than 2GB is limited by your operating system and web browser.

      Pros:
    • Available to all authenticated State of Alaska users .
    • Works (for files smaller than 2GB) in all common web browsers


  • How do I receive a credit for my exploration expenses?

  • The Department of Revenue, Tax Division offers two oil and gas production tax credit programs that relate to exploration expenditures: One under AS 43.55.023 and the other under AS 43.55.025.

    Once you determine which credit program your exploration project qualifies for (it may be both), select and complete the correct applications on the Tax Division's Revenue Online website at https://online-tax.alaska.gov

    Please refer to the statutes and associated regulations for specific time periods for which a tax credit applications may be submitted, expenditures that qualify for the credits, and information that must be provided or made available in order to receive the credits.

  • What is the general process or timeline to receive my tax credit certificate?

  • It depends under which tax credit program the application is filed:

      Under AS 43.55.023
    • 1) Tax Division receives the application for "Oil and Gas Production Tax Credits under AS 43.55.023" in Revenue Online. The taxpayer is required to include "Credit Application Expenditure Support" with the application. The template file and related instructions are located on the Tax Division's forms website at: http://www.tax.alaska.gov/programs/programs/forms/index.aspx?60650

    • 2) Tax Division has 120 days from the later of March 31st of the calendar year following the calendar year in which the expenditures were incurred or the date the application is received to complete its review and issue (or deny) the tax credit certificate.

    • 3) The application undergoes a "due diligence" review to verify the completeness of the application, the existence of the company, the existence of the project(s), and other general information to support the existence of the claimed expenses.

    • 4) The auditor reviewing the applications creates review workpapers and prepares the tax credit certificate letter(s).

    • 5) The proposed tax credit certificate(s) undergo internal Tax Division review.

    • 6) The tax credit certificates are finalized and certificate notification letters, which serve as the tax credit certificates, are sent to the company claiming the credit. The notification letters are available to the taxpayer in Revenue Online and are sent in hard copy through the USPS.

    • 7) After the tax credit certificates are issued, the Department has the right to audit and reduce the amount of the tax credit certificates even if the certificates have been sold or refunded for cash.

      Under AS 43.55.025
    • 1) Tax Division receives the application (one application on behalf of all partners) in Revenue Online.

    • 2) The application is forwarded to the Alaska Department of Natural Resources (DNR) for approval.

    • 3) If approved, a Tax Division auditor is assigned and a full audit is performed.

    • 4) The completed audit undergoes internal Tax Division review.

    • 5) Audit results are made available to the taxpayer in Revenue Online and are sent in hard copy through the USPS.

    • 6) An electronic tax credit certificate is issued to each company included in the application. These certificates are in the form of letters and are available through Revenue Online, as well as being mailed to each company.

    • 7) The company(s) receiving the tax credit certificate(s) has the right to appeal the audit results.


  • What oil and gas production tax credits can be issued as certificates and redeemed for cash from the State?

  • Credits under AS 43.55.023(a), (b), and (l) may be certificated under AS 43.55.023(d) and (m). In addition, all credits under AS 43.55.025 are issued as certificates. All certificated credits under AS 43.55 are transferrable and redeemable for cash purchase by the State if qualifications are met under AS 43.55.028.