00                            SENATE BILL NO. 203                                                                         
01 "An Act creating a tax credit under the Alaska Net Income Tax Act for contributions to                                  
02 regional development organizations; and providing for an effective date."                                               
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 43.20 is amended by adding a new section to read:                                                 
05            Sec. 43.20.018.  Regional development organization tax credit.  (a)  For                                   
06       cash contributions accepted for direct operation of a regional development                                        
07       organization, as defined in AS 44.33.895, a taxpayer is allowed a tax credit equal to                             
08       the amount of the contribution, not to exceed $10,000.                                                            
09            (b)  A contribution claimed as a credit under this section may not                                           
10                 (1)  be claimed as a credit under another provision of this title;                                      
11                 (2)  also be allowed as a deduction under 26 U.S.C. 170 against the tax                                 
12       imposed by this chapter; and                                                                                      
13                 (3)  when combined with credits taken during the taxpayer's tax year                                    
14       under AS 21.89.070, 21.89.075, AS 43.20.014, AS 43.55.019, AS 43.56.018,                                          

01       AS 43.65.018, AS 43.75.018, or AS 43.77.045, exceed $150,000.                                                     
02    * Sec. 2.  AS 44.33.895(c) is amended to read:                                                                     
03            (c)  To qualify for a grant, a regional development organization must match the                              
04       grant by providing an amount of money from nonstate sources.  The department shall                                
05       establish by regulation a formula that determines the amount of the match required                                
06       under this subsection based on the capability of each organization to generate money                              
07       from nonstate sources.  The amount of match required may not exceed the amount of                                 
08       grant money and may not be less than 20 percent of the grant.  The total amount of                                
09       grant money provided to an organization during a fiscal year may not exceed                                       
10       $100,000.  The organization's grant application must list contributions received                              
11       on or after the effective date of this section and before July 1, 2003, and indicate                          
12       how those funds were used.                                                                                    
13    * Sec. 3.  AS 43.20.018, enacted by sec. 1 of this Act, is repealed July 1, 2003.                                  
14    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).