The state Legislature approved a bill that imposes a 25% tax on the net profits of oil companies operating in the state, raising the tax from the current rate of 22.5%.
The tax is expected to bring in an additional $1.5 billion annually for the state's treasury.
"This is the time where the state takes back its sovereignty," said State Rep. Les Gara, a Democrat from Anchorage. "This is the time where we say we get our fair share. This bill does all of those things and does nothing to chill investment."