Senate passes bill to eliminate film tax credit program

JUNEAU, Alaska (AP) - The Alaska Senate passed legislation Monday that would eliminate a state film tax credit program.

Sen. Bill Stoltze, R-Chugiak, sponsored the bill, which would eliminate the already-shuttered program.

The program allowed film companies to apply for the credits, and then sell them to companies with a larger tax burden in the state. It was created in 2008.

The governor’s proposed budget and versions that passed the House and Senate did not include funding for the program, effectively suspending it. Stoltze said that while the program successfully attracted some films to the state, he wanted to ensure that previously authorized credits weren’t used, and that the program wasn’t reinstated.

Sen. Johnny Ellis, D-Anchorage said ending the program entirely would send a message to the film industry that Alaska was no longer open for business. Ellis has been a long-time supporter of the credits and sponsored the legislation to create them.

Bethel Sen. Lyman Hoffman, a Democrat who caucuses with the Republican majority, joined the Senate minority in voting against the bill.

Sen. Bill Wielechowski, D-Anchorage, proposed three amendments that would have changed oil and gas production tax credits and an oil refinery tax credit. Those all failed.

The bill now goes to the House for consideration.