By SUZANNE DOWNING
July 3, 2026 – A coalition representing virtually every major business and resource industry in Alaska has delivered a unified message to the Legislature: Stop adding unrelated tax proposals to House Bill 381 and pass a clean bill focused solely on advancing the Alaska LNG Project.
In a joint letter sent Thursday to all members of the Alaska Legislature, nine of Alaska’s largest statewide business organizations warned that attaching targeted tax measures to the gasline legislation threatens the investment certainty needed to move forward with what they describe as one of the largest infrastructure projects in state history.
The letter comes as lawmakers remain stalled out in a special legislative session called by Gov. Mike Dunleavy to resolve tax terms for the Alaska LNG Project. While the House previously passed a clean version of HB 381 establishing a construction-phase tax framework for the project, the Senate later amended the measure to include an S corporation income tax and other unrelated provisions. The House rejected those changes, sending the bill into a conference committee.
The business coalition argues that using project-specific legislation to pursue unrelated tax policy sends the wrong signal to investors.
“HB 381 is intended to establish the stable, competitive framework necessary to advance one of the most significant infrastructure investments in Alaska’s history,” the organizations wrote. “It should remain focused on that purpose.”
The groups warned that inserting targeted tax provisions risks creating uncertainty for companies considering major long-term investments in Alaska.
“Whether directed at one company, one industry, or one business structure, using project-specific legislation as a vehicle for unrelated tax policy sets a precedent that should concern every employer and potential investor in Alaska,” the letter states. “Today’s proposal may be an attempt at targeting one sector. Tomorrow, the same approach could be applied to another.”
The organizations said businesses make decisions on hiring, purchasing equipment, expanding operations, and investing capital based on predictable public policy.
Rather than viewing the Alaska LNG Project as benefiting only oil and gas producers, the coalition emphasized its statewide economic impact.
“The Alaska LNG Project represents an opportunity that extends far beyond any single industry,” the letter says. “Construction companies, trucking firms, miners, seafood processors, manufacturers, suppliers, Alaska Native corporations, small businesses, and communities across the state all stand to benefit from the jobs, contracts, affordable energy, and long-term economic activity the project can create.”
The coalition argued that legislators who wish to debate broader tax policy should do so through separate legislation rather than attaching new taxes to a bill designed to make Alaska more competitive for private investment.
“Regardless of one’s views on broader tax policy, those discussions deserve to stand on their own merits through the normal legislative process—not as amendments to legislation designed to encourage investment in a transformational project,” the organizations wrote.
The letter was signed by leaders of the Alaska Chamber, Alaska Miners Association, Alaska Oil and Gas Association, Alaska Support Industry Alliance, Alaska Trucking Association, Associated Builders and Contractors of Alaska, Associated General Contractors of Alaska, Pacific Seafood Processors Association, and the Resource Development Council for Alaska.
Collectively, the organizations represent thousands of Alaska businesses employing tens of thousands of workers across virtually every major sector of the state’s economy.
The letter adds to growing pressure on lawmakers to strip the controversial tax provisions from HB 381 and return the bill to its original purpose: establishing the construction-phase tax certainty sought by developers and lenders as the Alaska LNG Project moves toward a final investment decision.
For weeks, industry representatives have warned that the addition of unrelated taxes could jeopardize financing by introducing uncertainty into the project’s economics. House Republicans have repeatedly argued that if legislators wish to consider an S corporation income tax or other broad tax measures, those proposals should receive their own hearings and stand-alone debate rather than being attached to legislation intended to advance Alaska’s largest proposed energy project.
2 thoughts on “Alaska business coalition urges Legislature to pass clean LNG bill, reject tax additions”
The business leaders increased involvement in running ads against or for local candidates running for office is what Alaska needs out of them to change Alaska’s direction.
Their participation in Alaska’s district elections making sure government dependent legislators never run unopposed.
Alaska has these type of legislators since 1995 because business and industry leaders of Alaska are not involved enough in local elections.
There is another industry that’s didn’t include themselves in the letter. But they should had been involved. It’s the Tourism industry leaders of Alaska, managers, and business owners of hotels, restaurants, lodges, airbnbs, and retail shops, car rental and auto dealerships.