1997-03-14                     House Journal                      Page 0665
HB 194                                                                       
HOUSE BILL NO. 194 by the House Rules Committee by request of                  
the Governor, entitled:                                                        

1997-03-14                     House Journal                      Page 0666
HB 194                                                                       
An Act relating to credits against certain taxes for contributions            
for educational purposes; and providing for an effective date.                 
                                                                               
was read the first time and referred to the Health, Education & Social         
Services, State Affairs and Finance Committees.                                
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Revenue, 3/14/97                                         
                                                                               
                                                                               
The Governor's transmittal letter, dated March 13, 1997, appears               
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
As part of my Alaska Business Investment Incentive Plan to expand              
the partnership between the state and the private sector, I am                 
submitting this legislation to enhance the existing tax credit for             
contributions to Alaskas colleges and universities and to expand it to         
cover contributions to our public elementary and secondary schools.            
                                                                               
Education is vital to an expanding economy and to preparing Alaskans           
for good jobs.  In todays climate of declining revenues and reduced            
budgets, it is vital we provide incentives to stimulate increased private      
contributions for our post-secondary institutions.  This initiative will       
build on the program started several years ago which has generated             
millions of additional dollars from the private sector to higher               
education in Alaska.                                                           
                                                                               
                                                                               
Under current law, taxpayers may claim a credit against several types          
of state taxes for contributions to eligible Alaska colleges or                
universities.  The credit is capped at $150,000 a year based on                
$200,000 in contributions.  This bill extends the cap on the tax credit        
by creating a new tier of creditable contributions.  Under this new tier       
of contributions, a taxpayer may claim a credit of 50% of an additional        
$150,000 of eligible contributions.                                            
                                                                               
                                                                               

1997-03-14                     House Journal                      Page 0667
HB 194                                                                       
The bill would also establish a new program which provides a tax               
credit of 50% of contributions up to $100,000 to local school districts        
for educational support to our primary and secondary schools.                  
                                                                               
This is just one of several proposals I am putting forward where it            
makes good policy sense to provide incentives which stimulate even             
greater returns in terms of jobs and economic activity in Alaska.              
                                                                               
I hope you will give this bill your support.                                   
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor                                                                
                                                                               
                                                                               
**The presence of Representative Hanley was noted.