Bill > HB113

This bill introduces two main tax provisions: a tax exemption for qualified small businesses and a film production tax credit. For small businesses, the bill provides a tax exemption for Alaska corporations that meet specific federal qualifications under 26 U.S.C. 1202, with important restrictions: the corporation must be an Alaska-based business, cannot be in construction, transportation, utility, or fisheries sectors, and must meet active business requirements. The total tax exemption is capped at $2.7 million per calendar year, with credits allocated on a first-come, first-served basis. The film production tax credit allows producers to receive a transferable tax credit of up to 25% of qualified production expenditures in Alaska, with potential additional percentage increases for hiring Alaska residents, filming in rural areas, and producing during specific months. The film production tax credit is limited to $20 million in total credits, and producers must meet specific eligibility requirements, such as having at least $100,000 in qualified expenditures over a 24-month period and including an Alaska logo in end credits. Both the small business tax exemption and the film production tax credit have sunset provisions, with the small business exemption set to expire on July 1, 2035, and the film production credit subject to aggregate spending limits.

Budget and Finance, Business and Industry

Labor & Commerce (House)

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB113