An Act relating to credits against the oil and gas production tax; and providing for an effective date.

SB 112 creates two tax credit systems for Alaska oil producers under the state's oil and gas production tax. Producers can claim a $5 credit per barrel for oil that receives a gross value reduction at production (Section 1), and tiered credits ranging from $1 to $8 per barrel based on monthly oil prices for oil produced north of 68°N latitude (Section 2). Credits cannot reduce tax liability below minimum levels or exceed qualified capital expenditures for each lease, and unused credits cannot be carried forward (Section 3). The bill applies to oil produced on or after January 1, 2025, directly affecting oil producers operating in Alaska, particularly those in northern regions.