00                             SENATE BILL NO. 151                                                                         
01 "An Act excepting from the Alaska Net Income Tax Act the federal deduction regarding                                    
02 income attributable to certain domestic production activities; and providing for an                                     
03 effective date."                                                                                                        
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 43.20 is amended by adding a new section to read:                                                 
06            Sec. 43.20.022.  Exception to federal domestic production activities income                                
07       deduction.  (a)  Notwithstanding any other provision of this chapter, this chapter                              
08       excepts to and does not adopt 26 U.S.C. 199 (Internal Revenue Code).                                              
09            (b)  In computing a net operating loss or a net capital loss for purposes of                                 
10       applying the loss to another tax year as provided in this chapter, the computation shall                          
11       be determined without regard to the deduction allowed for federal income tax                                      
12       purposes under 26 U.S.C. 199 (Internal Revenue Code).                                                             
13    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
14 read:                                                                                                                   
01       APPLICABILITY.  Section 1 of this Act applies to tax years beginning on or after                                  
02 January 1, 2005.                                                                                                        
03    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).