6327: 2025 Alaska Oil and Gas Qualified Service Industry Expenditure Credit (2025)
Alaska · Alaska DOR · Used for tax years 2025
Form 6327 calculates the potential current-year Alaska Qualified Oil and Gas Service Industry Expenditure Credit. It reports qualified expenditures incurred in Alaska, the expenditure amount used to calculate the credit, and the tentative credit.
Who files this form
Use Form 6327 to calculate the potential current-year Alaska Qualified Oil and Gas Service Industry Expenditure Credit against Alaska corporate income tax.
Complete one Form 6327 for each corporation that incurred qualifying expenditures in Alaska. Attach additional Forms 6327 as necessary.
If an entity taxed as a partnership incurs the expenditures, it reports the credit on Form 6900. A corporate partner may claim the credit against its Alaska corporate tax.
What you'll need
To complete Form 6327, have these details available:
- The calendar year or beginning and ending dates of the taxable year.
- The EIN and name shown on the return.
- The total qualified oil and gas service industry expenditures incurred in Alaska during the tax year.
The form also directs you to report the credit on Form 6300 or Form 6900, as applicable, and to report the required expense add-back on the applicable tax return schedule.
How to file
For the 2025 form:
- Enter the tax year, EIN and name shown on the return.
- On line 1, enter total qualified expenditures incurred in Alaska during the tax year.
- On line 2, enter the smaller of line 1 or $100,000,000.
- On line 3, multiply line 2 by 10% to calculate the tentative current-year credit.
- Report line 3 on Form 6300, line 5, for corporations, or Form 6900, Schedule A, line 14, for partnerships.
Add the line 2 amount back to Alaska taxable income on the applicable schedule:
- Form 6000: Schedule H, line 4e.
- Form 6100: Schedule G, line 3h.
- Form 6150: Schedule G, line 3h, or Schedule H, line 4e.
- Form 6900, for partnerships: Schedule A, line 3.
Complete one Form 6327 for each corporation with qualifying expenditures and attach additional Forms 6327 as necessary. The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Deducting an expenditure that is also the basis of the credit. The form prohibits that deduction when calculating Alaska corporate net income tax. Add the amount on line 2 back to Alaska taxable income.
- Including excluded costs. Qualifying expenditures do not include facilities or components or equipment used in the manufacturing or modification process.
- Exceeding the limits. Line 2 cannot exceed $100,000,000. The credit is limited to $10,000,000 per tax year. If you carry credit forward and make additional qualified expenditures in a subsequent year, the maximum claim for that year is still $10,000,000.
Questions people ask
What expenditures qualify?
Expenditures must be incurred in Alaska and directly attributable to the in-state manufacture or modification of tangible personal property. The property must have a useful life of at least three years and be used to explore, develop or produce oil or gas. Qualifying costs include services and supplies used to manufacture or modify the property.
How much is the credit?
The credit is 10% of qualified expenditures, up to $10,000,000 per tax year. Form 6327 calculates the tentative current-year credit.
Can unused credit be carried forward?
Yes. Credit that is not fully used may be carried forward for five years. If you also incur additional qualified expenditures in a subsequent year, the maximum credit you may claim in that year is $10,000,000.
What happens if a partnership incurs the expenditures?
The partnership reports the credit on Form 6900, Schedule A, line 14. A corporate partner may claim the credit to offset its Alaska corporate tax. The partnership reports the expense add-back on Form 6900, Schedule A, line 3.