The Alaska LNG project tax debate continues, with Governor Mike Dunleavy calling for a third special session to address the issue. This comes after a conference committee advanced a bill with a controversial tax change, subjecting private oil and gas companies to Alaska's 9.4% corporate income tax. The 'pass-through entities tax' was the dealbreaker, according to Dunleavy, who expressed concerns about its impact on investment in the North Slope and Cook Inlet. This tax change has sparked a heated debate, with minority Republicans and one majority caucus member strongly opposing it. The opposition is significant, given the House's bipartisan majority. The Senate passed the bill with a slim majority, but it failed in the House after Dunleavy's veto threat. The bill's supporters argue it would have given the developer a realistic shot at moving the project forward, but Dunleavy's concerns about investment and the potential impact on Hilcorp, a major oil and gas operator, remain a sticking point. The special session, set to begin in just over three weeks, comes at a critical time as lawmakers turn their attention to the upcoming elections. The question remains: can a compromise be reached before the primary election in August? This special session highlights the ongoing challenges in Alaska's legislative process and the complex relationship between government, business, and the environment.
