HB 399: "An Act disallowing a federal tax credit as a credit against the corporate net income tax; repealing a provision allowing the exclusion of certain royalties accrued or received from foreign corporations for purposes of the corporate net income tax; repealing the reduced rate for the alternative tax on capital gains for corporations; repealing an exemption from filing a return under the corporate net income tax for a corporation engaged in a contract under the Alaska Stranded Gas Development Act; and providing for an effective date."
00 HOUSE BILL NO. 399 01 "An Act disallowing a federal tax credit as a credit against the corporate net income tax; 02 repealing a provision allowing the exclusion of certain royalties accrued or received 03 from foreign corporations for purposes of the corporate net income tax; repealing the 04 reduced rate for the alternative tax on capital gains for corporations; repealing an 05 exemption from filing a return under the corporate net income tax for a corporation 06 engaged in a contract under the Alaska Stranded Gas Development Act; and providing 07 for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 43.20.021(a) is amended to read: 10 (a) Sections 26 U.S.C. 1 - 15, 53, 55 - 1399, [26 U.S.C. 1 - 1399] and 6001 - 11 7872 (Internal Revenue Code), as amended, are adopted by reference as a part of this 12 chapter. These portions of the Internal Revenue Code have full force and effect under 13 this chapter unless excepted to or modified by other provisions of this chapter.
01 * Sec. 2. AS 43.20.145(c) is amended to read: 02 (c) In (b)(1) [AND (3)] of this section, a payment is considered to be received 03 from a corporation that is part of the unitary business if the payment is received 04 (1) by a member of an affiliated group included in a water's edge 05 combined report filed under this section; and 06 (2) from a corporation in which the recipient owns 50 percent or more 07 of the stock of the corporation. 08 * Sec. 3. AS 43.20.145(d) is amended to read: 09 (d) Dividends [AND ROYALTIES] taxable to a corporation using the water's 10 edge combined reporting method are in lieu of an expense attribution for income 11 excluded under (b) of this section. 12 * Sec. 4. AS 43.20.021(c), 43.20.021(d), 43.20.036(a), 43.20.036(b), 43.20.042, 13 43.20.144(g), 43.20.145(b)(3), and 43.20.145(g) are repealed. 14 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 APPLICABILITY. AS 43.20.021(a), as amended by sec. 1 of this Act, 17 AS 43.20.145(c), as amended by sec. 2 of this Act, AS 43.20.145(d), as amended by sec. 3 of 18 this Act, and the repeal of AS 43.20.021(c) and (d), 43.20.036(a) and (b), 43.20.042, 19 43.20.144(g), and 43.20.145(b)(3) and (g) by sec. 4 of this Act apply to a taxpayer that is 20 filing a return for a tax year beginning on or after the effective date of secs. 1 - 4 of this Act. 21 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 TRANSITION: REGULATIONS. The Department of Revenue shall adopt regulations 24 necessary to implement the changes made by this Act. The regulations take effect under 25 AS 44.62 (Administrative Procedure Act), but not before January 1, 2019. 26 * Sec. 7. Sections 1 - 5 of this Act take effect January 1, 2019.