Juneau, Alaska (KINY) The state will receive $165 million in tax revenue, but not in cash.
Companies that owed back taxes from oil being shipped through the Trans-Alaska Pipeline will pay them by buying tax credits the state owes to other companies. The Alaska Energy Desk reported that the state currently owes $1 billion to small oil and gas companies under the cash for credit program the legislature ended last year.
The two sides reached an agreement in early December on pipeline shipping rates. There have been years of disagreement over the rates, described as too high by the oil companies.
This agreement must also be approved by the Regulatory Commission of Alaska and the Federal Energy Regulatory Commission.