CSHB 399(FIN): "An Act relating to the use of 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 CS FOR HOUSE BILL NO. 399(FIN) 01 "An Act relating to the use of a federal tax credit as a credit against the corporate net 02 income tax; repealing a provision allowing the exclusion of certain royalties accrued or 03 received from foreign corporations for purposes of the corporate net income tax; 04 repealing the reduced rate for the alternative tax on capital gains for corporations; 05 repealing an exemption from filing a return under the corporate net income tax for a 06 corporation engaged in a contract under the Alaska Stranded Gas Development Act; 07 and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 43.20.021(d) is amended to read: 10 (d) Where a credit allowed under the Internal Revenue Code is also allowed in 11 computing Alaska income tax, it is limited to 18 percent of the portion of the federal 12 tax credit that was generated by business expenses incurred through activities 13 conducted in the state [FOR CORPORATIONS OF THE AMOUNT OF CREDIT
01 DETERMINED FOR FEDERAL INCOME TAX PURPOSES WHICH IS 02 ATTRIBUTABLE TO ALASKA]. This limitation does not apply to a special 03 industrial incentive tax credit under AS 43.20.042. 04 * Sec. 2. AS 43.20.145(c) is amended to read: 05 (c) In (b)(1) [AND (3)] of this section, a payment is considered to be received 06 from a corporation that is part of the unitary business if the payment is received 07 (1) by a member of an affiliated group included in a water's edge 08 combined report filed under this section; and 09 (2) from a corporation in which the recipient owns 50 percent or more 10 of the stock of the corporation. 11 * Sec. 3. AS 43.20.145(d) is amended to read: 12 (d) Dividends [AND ROYALTIES] taxable to a corporation using the water's 13 edge combined reporting method are in lieu of an expense attribution for income 14 excluded under (b) of this section. 15 * Sec. 4. AS 43.20.021(c), 43.20.144(g), 43.20.145(b)(3), and 43.20.145(g) are repealed. 16 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 APPLICABILITY. AS 43.20.021(d), as amended by sec. 1 of this Act, 19 AS 43.20.145(c), as amended by sec. 2 of this Act, AS 43.20.145(d), as amended by sec. 3 of 20 this Act, and the repeal of AS 43.20.021(c), 43.20.144(g), and 43.20.145(b)(3) and (g) by sec. 21 4 of this Act apply to a taxpayer that is filing a return for a tax year beginning on or after the 22 effective date of secs. 1 - 4 of this Act. 23 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: REGULATIONS. The Department of Revenue shall adopt regulations 26 necessary to implement the changes made by this Act. The regulations take effect under 27 AS 44.62 (Administrative Procedure Act), but not before January 1, 2019. 28 * Sec. 7. Sections 1 - 5 of this Act take effect January 1, 2019.