Legislature(2011 - 2012)
2011-01-24 Senate Journal
Full Journal pdf2011-01-24 Senate Journal Page 0077 SB 64 SENATE BILL NO. 64 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to a tax credit for corporate income taxes paid for qualified research and development expenditures; and providing for an effective date." was read the first time and referred to the Labor and Commerce and Finance Committees. 2011-01-24 Senate Journal Page 0078 The following fiscal information was published today: Fiscal Note No. 1, indeterminate, Department of Revenue Governor's transmittal letter dated January 21: Dear President Stevens: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill establishing a tax credit against Alaska income taxes for qualified research and development conducted by corporate taxpayers. Innovation can be an expensive, intricate, and time-intensive enterprise. However, it also can spark a chain of investments in capital equipment, workers, and spillover activities into multiple economic sectors. In effect, the research and development tax credit would stimulate private-sector investment, entrepreneurial activity, and business expansion in Alaska that will bring opportunity and sustainable long-term benefits to our economy. The credit would be 20 percent of qualified research and development expenditures that exceed the average qualified research and development expenditures as defined in 26 U.S.C 41(d) (Internal Revenue Code) for the three years immediately preceding the year in which the credit is claimed. Unused credits may be carried forward for up to seven years after the expenditure for which the credit is claimed. The bill also would impose a reporting requirement so that the Legislature and the public are aware of the fiscal impact and economic benefits of the research and development credit to the state. The credit would induce corporations to conduct independent research in Alaska. For this reason and others, the credit is supported by the Department of Commerce, Community and Economic Development Advisory Council, which has been directed to identify means to induce investment and help increase the viability of business. Other supporters of the tax credit include Alaska businesses and chambers of commerce, as well as municipalities and economic development councils. This initiative also parallels efforts by the Anchorage Economic Development Corporation to establish relationships with corporations looking to relocate to favorable locations in Alaska. 2011-01-24 Senate Journal Page 0079 I urge your prompt and favorable action on this matter. Sincerely, /s/ Sean Parnell Governor