Alaska LNG Special Session Faces Grim Outlook as Lawmakers Cite Tax‑Break Stalemate

Alaska’s capital is about to buzz again – a third special session has been called to wrestle with the massive Alaska LNG megaproject. Yet, despite the fanfare, both Senate President Gary Stevens and House Speaker Bryce Edgmon sounded a note of resignation on Tuesday.

“The chances at this point are very low,” Edgmon said, his voice almost weary. He added that lawmakers are scattered across their districts, chasing the last bits of summer and gearing up for the Aug. 18 primary. In short, the political energy needed to push a multibillion‑dollar property‑tax break through the chambers just isn’t there.

The proposed tax incentive – a package meant to sweeten the deal for a pipeline that would whisk natural gas from the North Slope to consumers across the state by 2029 and to overseas markets by 2031 – has already hit a wall. It’s flopped in the regular session, then missed the mark in two back‑to‑back 30‑day special sessions.

Why the resistance? The crux of the disagreement centers on an expansion of Alaska’s corporate income tax. Senate members have repeatedly demanded that any gas‑line incentive be paired with a broader tax hike, a concession the industry isn’t prepared to make.

Glenfarne Alaska LNG President Adam Prestidge tried to stay upbeat in a Tuesday interview, insisting he still believes a bill could pass this year. He stopped short of proposing a concrete compromise, however, leaving many to wonder if optimism alone can move the legislative needle.

House Majority Leader Chuck Kopp, a Republican from Anchorage, echoed the sentiment that “more work … is needed to get consensus.” He warned against the costly logistics of bringing the entire House to Juneau for a vote when the details remain unsettled.

Republicans in the minority have not been shy about their frustration. Rep. Sarah Vance of Homer called the leadership’s plan for a “technical session” a thinly veiled excuse to avoid a full‑body debate, joking that the governor had essentially been told to “pound sand.” Rep. Steve St. Clair of Wasilla added that there is no collective will to advance the bill right now.

Governor Mike Dunleavy, who issued the proclamation to start the session, remains cautiously optimistic. In a statement Tuesday afternoon he said he still sees a path forward for a tax break, but he offered no specifics on how the corporate‑tax hurdle might be cleared.

All eyes will be on the technical sessions scheduled for Monday. If they remain merely a formality, the LNG project – projected to cost up to $55 billion and touted by some as a lifeline for Alaska’s energy future – could be pushed further into limbo, at least until the next legislative calendar opens.