The Alaska Permanent Fund (APF) is an officially furnished fund, which administers the profits from the local oil production of Alaska.
A state-wide referendum held in Alaska created the Alaska Permanent Fund in 1976 as a state fund to govern revenue from oil extracted in Alaska. Prior to the creation of the fund, the US government was accused of embezzling the revenues from traded oil. Currently, the fund receives 25% of the revenues earned from its trade. Whereas, half of the revenues are distributed to the population of Alaska to compensate them for the high cost of living. The compensation is distributed equally to all citizens of Alaska. They are free to spend their share on anything they desire. This sum may vary yearly. It depends on profits within the last five years and the amount of people living in the state at the time.
Citizens of Alaska who have previously been convicted of a crime are not eligible to receive this compensation. Applicants are required to have lived in Alaska for one calendar year prior to obtaining their share and must stipulate their intentions of living in the state. The money the citizens receive from this fund is considered taxable income.
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