Legislature(1997 - 1998)
1997-03-12 Senate Journal
Full Journal pdf1997-03-12 Senate Journal Page 0693 SB 133 SENATE BILL NO. 133 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to a small business development tax credit under the Alaska Net Income Tax Act; and providing for an effective date. was read the first time and referred to the State Affairs and Finance Committees. Fiscal note published today from Department of Revenue. Governors transmittal letter dated March 11: Dear President Miller: 1997-03-12 Senate Journal Page 0694 SB 133 The vast majority of Alaskas businesses can be defined as small but they play an enormous role in our states economy by providing more than 70 percent of private sector jobs and being the largest employers of minorities, women and youth. Any effort to give a boost to business in Alaska must consider small businesses. This bill, which is part of my Alaska Business Investment Incentive Plan, will encourage growth in small businesses by offering them tax credits for improving and expanding their operations. The intent is to help level the competitive playing field between small businesses and larger corporations which enjoy economies of scale and management, and ready access to investment capital at favorable interest rates. Through this program, the state can assist small businesses in covering start-up costs, the purchase of new equipment, and the expansion of facilities--leading to jobs for Alaskans. The Small Business Investment Tax Credit will benefit non-affiliated corporations, those with no brothers, sisters, parents or subsidiaries, with fewer than 50 employees. The tax credit will be 10% of capital investment up to $100,000, with a maximum annual credit of $10,000 and 50% of the businesss corporate income tax liability. To qualify, the investment must be for new property and the corporation must be in good standing on unemployment insurance and other state taxes. This proposal will help small businesses--the lifeblood of Alaskas economy--to expand and thrive, thereby ensuring more Alaska private sector jobs and a healthy economy as we enter the next century. This is one goal we all can agree on and support. Sincerely, /s/ Tony Knowles Governor