Palin's windfall tax will fund a $1,200 "rebate" that Alaska will give to every eligible man, woman and child in Alaska, to help offset soaring fuel prices. That money will be dispersed as part of larger, $3,269 check that Alaskans will receive that was paid for by state taxes on oil companies - a family of four will receive a check for $13,076. The fuel rebates will cost the state $750 million.

In October 2007 Palin rolled out a tax increase plan on oil companies operating in Alaska, including a windfall profits tax. Palin's plan, called the "Alaska's Clear and Equitable Share" (ACES) plan, was approved by the state Legislature and includes:

• Raising the state's current net profits tax on North Slope oil from a 22.5% to 25.0% base.
• A "progressive" windfall profits tax: When oil prices rise above about $50 a barrel, the tax rate increases by 0.2% for each additional dollar a barrel.

Palin said, "The state of Alaska is currently the largest investor on the North Slope, having paid for 50 percent of all investments in 2007. Yet our share of net revenue, including royalties, property and corporate income tax, was about 40 percent. The "equitable share" component in ACES narrows this gap..."