Next fiscal year alone, Sen. Joe Paskvan says, the state anticipates credits in the range of $875 million.
Tax credits were discussed during a Senate Resources Committee hearing Friday during which the state Revenue Department testified.
The tax structure, passed in 2007, features a suite of tax credits. For example, producers can take a 20 percent credit on capital expenditures and there are breaks for explorers too.
Companies can also deduct the value of their capital expenditures. That aspect wasn't discussed in detail.
The committee, co-chaired by Paskvan, is expected to release its own oil tax bill this session.
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