CSHB 118(L&C): "An Act relating to a tax credit for corporate income taxes paid for qualified research and development expenditures; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 118(L&C) 01 "An Act relating to a tax credit for corporate income taxes paid for qualified research 02 and development expenditures; 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 article 1 to read: 05 Sec. 43.20.047. Qualified research and development tax credit. (a) Subject 06 to the terms and conditions of this section and in addition to any other credit 07 authorized to the taxpayer by this chapter, a taxpayer may apply 20 percent of the 08 taxpayer's expenditure for qualified research and development attributable to this state 09 for the taxable year that exceeds the base amount as a credit not to exceed $10,000,000 10 against the state tax liability imposed on the taxpayer under this chapter. 11 (b) Qualified research and development expenditures are attributable to this 12 state if the research and development is being conducted in this state or the payroll of 13 employees conducting the research and development is in this state. In this subsection, 14 payroll of an employee is in this state if compensation is paid to an employee in this
01 state and reported as paid in this state in the quarterly contribution report under 02 AS 23.20 to the Department of Labor and Workforce Development. 03 (c) If the tax credit under this section exceeds the taxpayer's tax liability after 04 other tax credits are taken under this chapter for the year in which the expenditure is 05 incurred, the excess of the tax credit over the liability may be carried forward for up to 06 seven years. If an unused credit is carried forward to a tax year from an earlier year, 07 the credit arising in the earliest year is applied first against the tax liability for the year. 08 (d) A person may not claim a credit under this section for qualified research 09 and development expenditures that were deducted in the calculation of tax liability 10 under AS 43.20.011(e) or for which any other credit, including any federal credit, has 11 been apportioned to this state and claimed under AS 43.20.021. 12 (e) Each year, if three or more taxpayers claim the credit authorized under this 13 section during the immediately preceding year, the department shall report the number 14 of taxpayers who claimed credits under this section in the prior year, the total 15 cumulative amount of credits granted to all taxpayers under this section for the prior 16 tax year, and the total cumulative number of employees conducting the research and 17 development for which all taxpayers claim the credit. 18 (f) In this section, 19 (1) "base amount" means the average of qualified research and 20 development expenditures attributable to this state for the three tax years immediately 21 preceding the taxable year for which the credit is being claimed; 22 (2) "qualified research and development" has the meaning given to 23 "qualified research" in 26 U.S.C. 41(d) (Internal Revenue Code), as amended, that is 24 attributable to this state. 25 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).