00 CS FOR HOUSE BILL NO. 89(HSS) 01 "An Act relating to education tax credits for certain payments and contributions for 02 child care and child care facilities; relating to the insurance tax education credit, the 03 income tax education credit, the oil or gas producer education credit, the property tax 04 education credit, the mining business education credit, the fisheries business education 05 credit, and the fisheries resource landing tax education credit; relating to the day care 06 assistance program and the child care grant program; providing for an effective date by 07 amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an 08 effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10  * Section 1. AS 21.96.070(a) is amended to read: 11 (a) A taxpayer is allowed a credit against the tax due under AS 21.09.210 or 12 AS 21.66.110 for [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED] 01 (1) contributions of cash or equipment accepted for direct 02 instruction, research, and educational support purposes, including library and museum 03 acquisitions, and contributions to endowment, by an Alaska university foundation or 04 by a nonprofit, public or private, Alaska two-year or four-year college accredited by a 05 national or regional accreditation association; 06 (2) contributions of cash or equipment accepted for secondary 07 school level vocational education courses, programs, and facilities by a school district 08 in the state; 09 (3) contributions of cash or equipment accepted for vocational 10 education courses, programs, and facilities by a state-operated vocational technical 11 education and training school; 12 (4) contributions of cash or equipment accepted for a facility by a 13 nonprofit, public or private, Alaska two-year or four-year college accredited by a 14 national or regional accreditation association; 15 (5) contributions of cash or equipment accepted for Alaska Native 16 cultural or heritage programs and educational support, including mentoring and 17 tutoring, provided by a nonprofit agency for public school staff and for students who 18 are in grades kindergarten through 12 in the state; [AND] 19 (6) contributions of cash or equipment accepted for education, 20 research, rehabilitation, and facilities by an institution that is located in the state and 21 that qualifies as a coastal ecosystem learning center under the Coastal America 22 Partnership established by the federal government;  23 (7) expenditures made to operate a child care facility in the state  24 for the children of the taxpayer's employees;  25 (8) contributions of cash or equipment accepted by a child care  26 facility in the state operated by a nonprofit corporation and attended by one or  27 more children of the taxpayer's employees; and  28 (9) a payment to an employee of the taxpayer made by the  29 taxpayer for the purpose of offsetting the employee's child care costs incurred in  30 the state. 31  * Sec. 2. AS 21.96.070(d) is amended to read: 01 (d) A contribution claimed as a credit under this section may not 02 (1) be the basis for a credit claimed under another provision of this 03 title; and 04 (2) when combined with contributions that are the basis for credits 05 taken during the taxpayer's tax year under AS 43.20.014, AS 43.55.019, 06 AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 07 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 08 an affiliated group, then the total amount of credits may not exceed $3,000,000 09 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 10 meaning given in AS 43.20.145. 11  * Sec. 3. AS 21.96.070 is amended by adding a new subsection to read: 12 (g) Beginning January 1, 2030, and every five years thereafter, the Department 13 of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 14 of this section for inflation, using 100 percent of the change over the preceding five 15 calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 16 compiled by the Bureau of Labor Statistics, United States Department of Labor. 17  * Sec. 4. AS 43.20.014(a) is amended to read: 18 (a) A taxpayer is allowed a credit against the tax due under this chapter for 19 [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED FOR] 20 (1) contributions of cash or equipment accepted for direct 21 instruction, research, and educational support purposes, including library and museum 22 acquisitions, and contributions to endowment, by an Alaska university foundation, by 23 a nonprofit, public or private, Alaska two-year or four-year college accredited by a 24 national or regional accreditation association, or by a public or private nonprofit 25 elementary or secondary school in the state; 26 (2) contributions of cash or equipment accepted for secondary 27 school level vocational education courses, programs, and facilities by a school district 28 in the state; 29 (3) contributions of cash or equipment accepted for vocational 30 education courses, programs, equipment, and facilities by a state-operated vocational 31 technical education and training school, a nonprofit regional training center recognized 01 by the Department of Labor and Workforce Development, and an apprenticeship 02 program in the state that is registered with the United States Department of Labor 03 under 29 U.S.C. 50 - 50b (National Apprenticeship Act); 04 (4) contributions of cash or equipment accepted for a facility by a 05 nonprofit, public or private, Alaska two-year or four-year college accredited by a 06 national or regional accreditation association or by a public or private nonprofit 07 elementary or secondary school in the state; 08 (5) contributions of cash or equipment accepted for Alaska Native 09 cultural or heritage programs and educational support, including mentoring and 10 tutoring, provided by a nonprofit agency for public school staff and for students who 11 are in grades kindergarten through 12 in the state; 12 (6) contributions of cash or equipment accepted for education, 13 research, rehabilitation, and facilities by an institution that is located in the state and 14 that qualifies as a coastal ecosystem learning center under the Coastal America 15 Partnership established by the federal government; 16 (7) contributions of cash or equipment accepted for the Alaska 17 higher education investment fund under AS 37.14.750; 18 (8) contributions of cash or equipment accepted for funding a 19 scholarship awarded by a nonprofit organization to a dual-credit student to defray the 20 cost of a dual-credit course, including the cost of 21 (A) tuition and textbooks; 22 (B) registration, course, and programmatic student fees; 23 (C) on-campus room and board at the postsecondary institution 24 in the state that provides the dual-credit course; 25 (D) transportation costs to and from a residential school 26 approved by the Department of Education and Early Development under 27 AS 14.16.200 or the postsecondary school in the state that provides the dual- 28 credit course; and 29 (E) other related educational and programmatic costs; 30 (9) contributions of cash or equipment accepted for constructing, 31 operating, or maintaining a residential housing facility by a residential school in the 01 state approved by the Department of Education and Early Development under 02 AS 14.16.200; 03 (10) contributions of cash or equipment accepted for childhood 04 early learning and development programs and educational support to childhood early 05 learning and development programs provided by a nonprofit corporation organized 06 under AS 10.20, a tribal entity, or a school district in the state, by the Department of 07 Education and Early Development, or through a state grant; 08 (11) contributions of cash or equipment accepted for science, 09 technology, engineering, and math programs provided by a nonprofit agency or a 10 school district for school staff and for students in grades kindergarten through 12 in 11 the state; [AND] 12 (12) contributions of cash or equipment accepted for the operation 13 of a nonprofit organization dedicated to providing educational opportunities that 14 promote the legacy of public service contributions to the state and perpetuate ongoing 15 educational programs that foster public service leadership for future generations of 16 residents of the state;  17 (13) expenditures made to operate a child care facility in the state  18 for the children of the taxpayer's employees;  19 (14) contributions of cash or equipment accepted by a child care  20 facility in the state operated by a nonprofit corporation and attended by one or  21 more children of the taxpayer's employees; and  22 (15) a payment to an employee of the taxpayer made by the  23 taxpayer for the purpose of offsetting the employee's child care costs incurred in  24 the state. 25  * Sec. 5. AS 43.20.014(d) is amended to read: 26 (d) A contribution claimed as a credit under this section may not 27 (1) be the basis for a credit claimed under another provision of this 28 title; 29 (2) also be allowed as a deduction under 26 U.S.C. 170 against the tax 30 imposed by this chapter; and 31 (3) when combined with contributions that are the basis for credits 01 taken during the taxpayer's tax year under AS 21.96.070, AS 43.55.019, 02 AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 03 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 04 an affiliated group, then the total amount of credits may not exceed $3,000,000 05 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 06 meaning given in AS 43.20.145. 07  * Sec. 6. AS 43.20.014 is amended by adding a new subsection to read: 08 (h) Beginning January 1, 2030, and every five years thereafter, the Department 09 of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 10 of this section for inflation, using 100 percent of the change over the preceding five 11 calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 12 compiled by the Bureau of Labor Statistics, United States Department of Labor.  13  * Sec. 7. AS 43.55.019(a) is amended to read: 14 (a) A producer of oil or gas is allowed a credit against the tax levied by 15 AS 43.55.011(e) for [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED 16 FOR] 17 (1) contributions of cash or equipment accepted for direct 18 instruction, research, and educational support purposes, including library and museum 19 acquisitions, and contributions to endowment, by an Alaska university foundation or 20 by a nonprofit, public or private, Alaska two-year or four-year college accredited by a 21 national or regional accreditation association; 22 (2) contributions of cash or equipment accepted for secondary 23 school level vocational education courses, programs, and facilities by a school district 24 in the state; 25 (3) contributions of cash or equipment accepted for vocational 26 education courses, programs, equipment, and facilities by a state-operated vocational 27 technical education and training school, a nonprofit regional training center recognized 28 by the Department of Labor and Workforce Development, and an apprenticeship 29 program in the state that is registered with the United States Department of Labor 30 under 29 U.S.C. 50 - 50b (National Apprenticeship Act); 31 (4) contributions of cash or equipment accepted for a facility by a 01 nonprofit, public or private, Alaska two-year or four-year college accredited by a 02 national or regional accreditation association; 03 (5) contributions of cash or equipment accepted for Alaska Native 04 cultural or heritage programs and educational support, including mentoring and 05 tutoring, provided by a nonprofit agency for public school staff and for students who 06 are in grades kindergarten through 12 in the state; 07 (6) contributions of cash or equipment accepted for education, 08 research, rehabilitation, and facilities by an institution that is located in the state and 09 that qualifies as a coastal ecosystem learning center under the Coastal America 10 Partnership established by the federal government; [AND] 11 (7) contributions of cash or equipment accepted for the Alaska 12 higher education investment fund under AS 37.14.750;  13 (8) expenditures made to operate a child care facility in the state  14 for the children of the producer's employees;  15 (9) contributions of cash or equipment accepted by a child care  16 facility in the state operated by a nonprofit corporation and attended by one or  17 more children of the producer's employees; and  18 (10) a payment to an employee of the producer made by the  19 producer for the purpose of offsetting the employee's child care costs incurred in  20 the state. 21  * Sec. 8. AS 43.55.019(d) is amended to read: 22 (d) A contribution claimed as a credit under this section may not 23 (1) be the basis for a credit claimed under another provision of this 24 title; and 25 (2) when combined with contributions that are the basis for credits 26 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 27 AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 28 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 29 an affiliated group, then the total amount of credits may not exceed $3,000,000 30 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 31 meaning given in AS 43.20.145. 01  * Sec. 9. AS 43.55.019 is amended by adding a new subsection to read: 02 (i) Beginning January 1, 2030, and every five years thereafter, the Department 03 of Labor and Workforce Development shall adjust the limit under (d) of this section 04 for inflation, using 100 percent of the change over the preceding five calendar years in 05 the Consumer Price Index for all urban consumers for urban Alaska, compiled by the 06 Bureau of Labor Statistics, United States Department of Labor. 07  * Sec. 10. AS 43.56.018(a) is amended to read: 08 (a) The owner of property taxable under this chapter is allowed a credit 09 against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR 10 EQUIPMENT ACCEPTED FOR] 11 (1) contributions of cash or equipment accepted for direct 12 instruction, research, and educational support purposes, including library and museum 13 acquisitions, and contributions to endowment, by an Alaska university foundation or 14 by a nonprofit, public or private, Alaska two-year or four-year college accredited by a 15 national or regional accreditation association; 16 (2) contributions of cash or equipment accepted for secondary 17 school level vocational education courses, programs, and facilities by a school district 18 in the state; 19 (3) contributions of cash or equipment accepted for vocational 20 education courses, programs, and facilities by a state-operated vocational technical 21 education and training school; 22 (4) contributions of cash or equipment accepted for a facility by a 23 nonprofit, public or private, Alaska two-year or four-year college accredited by a 24 national or regional accreditation association; 25 (5) contributions of cash or equipment accepted for Alaska Native 26 cultural or heritage programs and educational support, including mentoring and 27 tutoring, provided by a nonprofit agency for public school staff and for students who 28 are in grades kindergarten through 12 in the state; 29 (6) contributions of cash or equipment accepted for education, 30 research, rehabilitation, and facilities by an institution that is located in the state and 31 that qualifies as a coastal ecosystem learning center under the Coastal America 01 Partnership established by the federal government; [AND] 02 (7) contributions of cash or equipment accepted for the Alaska 03 higher education investment fund under AS 37.14.750;  04 (8) expenditures made to operate a child care facility in the state  05 for the children of the property owner's employees;  06 (9) contributions of cash or equipment accepted by a child care  07 facility in the state operated by a nonprofit corporation and attended by one or  08 more children of the property owner's employees; and  09 (10) a payment to an employee of the property owner made by the  10 owner for the purpose of offsetting the employee's child care costs incurred in the  11 state. 12  * Sec. 11. AS 43.56.018(d) is amended to read: 13 (d) A contribution claimed as a credit under this section may not 14 (1) be the basis for a credit claimed under another provision of this 15 title; and 16 (2) when combined with contributions that are the basis for credits 17 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 18 AS 43.55.019, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 19 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 20 an affiliated group, then the total amount of credits may not exceed $3,000,000 21 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 22 meaning given in AS 43.20.145. 23  * Sec. 12. AS 43.56.018 is amended by adding a new subsection to read: 24 (h) Beginning January 1, 2030, and every five years thereafter, the department 25 shall adjust the dollar limit on credits under (d) of this section for inflation, using 100 26 percent of the change over the preceding five calendar years in the Consumer Price 27 Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor 28 Statistics, United States Department of Labor. 29  * Sec. 13. AS 43.65.018(a) is amended to read: 30 (a) A person engaged in the business of mining in the state is allowed a credit 31 against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR 01 EQUIPMENT ACCEPTED FOR] 02 (1) contributions of cash or equipment accepted for direct 03 instruction, research, and educational support purposes, including library and museum 04 acquisitions, and contributions to endowment, by an Alaska university foundation, by 05 a nonprofit, public or private, Alaska two-year or four-year college accredited by a 06 national or regional accreditation association, or by a public or private nonprofit 07 elementary or secondary school in the state; 08 (2) contributions of cash or equipment accepted for secondary 09 school level vocational education courses, programs, and facilities by a school district 10 in the state; 11 (3) contributions of cash or equipment accepted for vocational 12 education courses, programs, and facilities by a state- operated vocational technical 13 education and training school; 14 (4) contributions of cash or equipment accepted for a facility by a 15 nonprofit, public or private, Alaska two-year or four-year college accredited by a 16 national or regional accreditation association or by a public or private nonprofit 17 elementary or secondary school in the state; 18 (5) contributions of cash or equipment accepted for Alaska Native 19 cultural or heritage programs and educational support, including mentoring and 20 tutoring, provided by a nonprofit agency for public school staff and for students who 21 are in grades kindergarten through 12 in the state; 22 (6) contributions of cash or equipment accepted for education, 23 research, rehabilitation, and facilities by an institution that is located in the state and 24 that qualifies as a coastal ecosystem learning center under the Coastal America 25 Partnership established by the federal government; 26 (7) contributions of cash or equipment accepted for the Alaska 27 higher education investment fund under AS 37.14.750; 28 (8) contributions of cash or equipment accepted for funding a 29 scholarship awarded by a nonprofit organization to a dual-credit student to defray the 30 cost of a dual-credit course, including the cost of 31 (A) tuition and textbooks; 01 (B) registration, course, and programmatic student fees; 02 (C) on-campus room and board at the postsecondary institution 03 in the state that provides the dual-credit course; 04 (D) transportation costs to and from a residential school 05 approved by the Department of Education and Early Development under 06 AS 14.16.200 or the postsecondary school in the state that provides the dual- 07 credit course; and 08 (E) other related educational and programmatic costs; 09 (9) contributions of cash or equipment accepted for constructing, 10 operating, or maintaining a residential housing facility by a residential school 11 approved by the Department of Education and Early Development under 12 AS 14.16.200; 13 (10) contributions of cash or equipment accepted for childhood 14 early learning and development programs and educational support to childhood early 15 learning and development programs provided by a nonprofit corporation organized 16 under AS 10.20, a tribal entity, or a school district in the state, by the Department of 17 Education and Early Development, or through a state grant; 18 (11) contributions of cash or equipment accepted for science, 19 technology, engineering, and math programs provided by a nonprofit agency or a 20 school district for school staff and for students in grades kindergarten through 12 in 21 the state; [AND] 22 (12) contributions of cash or equipment accepted for the operation 23 of a nonprofit organization dedicated to providing educational opportunities that 24 promote the legacy of public service contributions to the state and perpetuate ongoing 25 educational programs that foster public service leadership for future generations of 26 residents of the state;  27 (13) expenditures made to operate a child care facility in the state  28 for the children of the person's employees;  29 (14) contributions of cash or equipment accepted by a child care  30 facility in the state operated by a nonprofit corporation and attended by one or  31 more children of the person's employees; and  01 (15) a payment to an employee of the person's business made by  02 the person for the purpose of offsetting the employee's child care costs incurred  03 in the state. 04  * Sec. 14. AS 43.65.018(d) is amended to read: 05 (d) A contribution claimed as a credit under this section may not 06 (1) be the basis for a credit claimed under another provision of this 07 title; and 08 (2) when combined with contributions that are the basis for credits 09 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 10 AS 43.55.019, AS 43.56.018, AS 43.75.018, or AS 43.77.045, result in the total 11 amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member 12 of an affiliated group, then the total amount of credits may not exceed $3,000,000 13 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 14 meaning given in AS 43.20.145. 15  * Sec. 15. AS 43.65.018 is amended by adding a new subsection to read: 16 (h) Beginning January 1, 2030, and every five years thereafter, the department 17 shall adjust the dollar limit on credits under (d) of this section for inflation, using 100 18 percent of the change over the preceding five calendar years in the Consumer Price 19 Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor 20 Statistics, United States Department of Labor. 21  * Sec. 16. AS 43.75.018(a) is amended to read: 22 (a) A person engaged in a fisheries business is allowed a credit against the tax 23 due under this chapter for [CONTRIBUTIONS OF CASH OR EQUIPMENT 24 ACCEPTED FOR] 25 (1) contributions of cash or equipment accepted for direct 26 instruction, research, and educational support purposes, including library and museum 27 acquisitions, and contributions to endowment, by an Alaska university foundation, by 28 a nonprofit, public or private, Alaska two-year or four-year college accredited by a 29 national or regional accreditation association, or by a public or private nonprofit 30 elementary or secondary school in the state; 31 (2) contributions of cash or equipment accepted for secondary 01 school level vocational education courses, programs, and facilities by a school district 02 in the state; 03 (3) contributions of cash or equipment accepted for vocational 04 education courses, programs, and facilities by a state-operated vocational technical 05 education and training school; 06 (4) contributions of cash or equipment accepted for a facility by a 07 nonprofit, public or private, Alaska two-year or four-year college accredited by a 08 national or regional accreditation association or by a public or private nonprofit 09 elementary or secondary school in the state; 10 (5) contributions of cash or equipment accepted for Alaska Native 11 cultural or heritage programs and educational support, including mentoring and 12 tutoring, provided by a nonprofit agency for public school staff and for students who 13 are in grades kindergarten through 12 in the state; 14 (6) contributions of cash or equipment accepted for education, 15 research, rehabilitation, and facilities by an institution that is located in the state and 16 that qualifies as a coastal ecosystem learning center under the Coastal America 17 Partnership established by the federal government; 18 (7) contributions of cash or equipment accepted for the Alaska 19 higher education investment fund under AS 37.14.750; 20 (8) contributions of cash or equipment accepted for funding a 21 scholarship awarded by a nonprofit organization to a dual-credit student to defray the 22 cost of a dual-credit course, including the cost of 23 (A) tuition and textbooks; 24 (B) registration, course, and programmatic student fees; 25 (C) on-campus room and board at the postsecondary institution 26 in the state that provides the dual-credit course; 27 (D) transportation costs to and from a residential school 28 approved by the Department of Education and Early Development under 29 AS 14.16.200 or the postsecondary school in the state that provides the dual- 30 credit course; and 31 (E) other related educational and programmatic costs; 01 (9) contributions of cash or equipment accepted for constructing, 02 operating, or maintaining a residential housing facility by a residential school 03 approved by the Department of Education and Early Development under 04 AS 14.16.200; 05 (10) contributions of cash or equipment accepted for childhood 06 early learning and development programs and educational support to childhood early 07 learning and development programs provided by a nonprofit corporation organized 08 under AS 10.20, a tribal entity, or a school district in the state, by the Department of 09 Education and Early Development, or through a state grant; 10 (11) contributions of cash or equipment accepted for science, 11 technology, engineering, and math programs provided by a nonprofit agency or a 12 school district for school staff and for students in grades kindergarten through 12 in 13 the state; [AND] 14 (12) contributions of cash or equipment accepted for the operation 15 of a nonprofit organization dedicated to providing educational opportunities that 16 promote the legacy of public service contributions to the state and perpetuate ongoing 17 educational programs that foster public service leadership for future generations of 18 residents of the state;  19 (13) expenditures made to operate a child care facility in the state  20 for the children of the person's employees;  21 (14) contributions of cash or equipment accepted by a child care  22 facility in the state operated by a nonprofit corporation and attended by one or  23 more children of the person's employees; and  24 (15) a payment to an employee of the person's business made by  25 the person for the purpose of offsetting the employee's child care costs incurred  26 in the state. 27  * Sec. 17. AS 43.75.018(d) is amended to read: 28 (d) A contribution claimed as a credit under this section may not 29 (1) be the basis for a credit claimed under another provision of this 30 title; and 31 (2) when combined with contributions that are the basis for credits 01 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 02 AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.77.045, result in the total 03 amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member 04 of an affiliated group, then the total amount of credits may not exceed $3,000,000 05 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 06 meaning given in AS 43.20.145. 07  * Sec. 18. AS 43.75.018 is amended by adding a new subsection to read: 08 (h) Beginning January 1, 2030, and every five years thereafter, the Department 09 of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 10 of this section for inflation, using 100 percent of the change over the preceding five 11 calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 12 compiled by the Bureau of Labor Statistics, United States Department of Labor. 13  * Sec. 19. AS 43.77.045(a) is amended to read: 14 (a) A person engaged in a floating fisheries business is allowed a credit 15 against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR 16 EQUIPMENT ACCEPTED FOR] 17 (1) contributions of cash or equipment accepted for direct 18 instruction, research, and educational support purposes, including library and museum 19 acquisitions, and contributions to endowment, by an Alaska university foundation, by 20 a nonprofit, public or private, Alaska two-year or four-year college accredited by a 21 national or regional accreditation association, or by a public or private nonprofit 22 elementary or secondary school in the state; 23 (2) contributions of cash or equipment accepted for secondary 24 school level vocational education courses, programs, and facilities by a school district 25 in the state; 26 (3) contributions of cash or equipment accepted for vocational 27 education courses, programs, and facilities by a state-operated vocational technical 28 education and training school; 29 (4) contributions of cash or equipment accepted for a facility by a 30 nonprofit, public or private, Alaska two-year or four-year college accredited by a 31 national or regional accreditation association or by a public or private nonprofit 01 elementary or secondary school in the state; 02 (5) contributions of cash or equipment accepted for Alaska Native 03 cultural or heritage programs and educational support, including mentoring and 04 tutoring, provided by a nonprofit agency for public school staff and for students who 05 are in grades kindergarten through 12 in the state; 06 (6) contributions of cash or equipment accepted for education, 07 research, rehabilitation, and facilities by an institution that is located in the state and 08 that qualifies as a coastal ecosystem learning center under the Coastal America 09 Partnership established by the federal government; 10 (7) contributions of cash or equipment accepted for the Alaska 11 higher education investment fund under AS 37.14.750; 12 (8) contributions of cash or equipment accepted for funding a 13 scholarship awarded by a nonprofit organization to a dual-credit student to defray the 14 cost of a dual-credit course, including the cost of 15 (A) tuition and textbooks; 16 (B) registration, course, and programmatic student fees; 17 (C) on-campus room and board at the postsecondary institution 18 in the state that provides the dual-credit course; 19 (D) transportation costs to and from a residential school 20 approved by the Department of Education and Early Development under 21 AS 14.16.200 or the postsecondary school in the state that provides the dual- 22 credit course; and 23 (E) other related educational and programmatic costs; 24 (9) contributions of cash or equipment accepted for constructing, 25 operating, or maintaining a residential housing facility by a residential school 26 approved by the Department of Education and Early Development under 27 AS 14.16.200; 28 (10) contributions of cash or equipment accepted for childhood 29 early learning and development programs and educational support to childhood early 30 learning and development programs provided by a nonprofit corporation organized 31 under AS 10.20, a tribal entity, or a school district in the state, by the Department of 01 Education and Early Development, or through a state grant; 02 (11) contributions of cash or equipment accepted for science, 03 technology, engineering, and math programs provided by a nonprofit agency or a 04 school district for school staff and for students in grades kindergarten through 12 in 05 the state; [AND] 06 (12) contributions of cash or equipment accepted for the operation 07 of a nonprofit organization dedicated to providing educational opportunities that 08 promote the legacy of public service contributions to the state and perpetuate ongoing 09 educational programs that foster public service leadership for future generations of 10 residents of the state;  11 (13) expenditures made to operate a child care facility in the state  12 for the children of the person's employees;  13 (14) contributions of cash or equipment accepted by a child care  14 facility in the state operated by a nonprofit corporation and attended by one or  15 more children of the person's employees; and  16 (15) a payment to an employee of the person's business made by  17 the person for the purpose of offsetting the employee's child care costs incurred  18 in the state. 19  * Sec. 20. AS 43.77.045(d) is amended to read: 20 (d) A contribution claimed as a credit under this section may not 21 (1) be the basis for a credit claimed under another provision of this 22 title; and 23 (2) when combined with contributions that are the basis for credits 24 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 25 AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.75.018, result in the total 26 amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member 27 of an affiliated group, then the total amount of credits may not exceed $3,000,000 28 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 29 meaning given in AS 43.20.145. 30  * Sec. 21. AS 43.77.045 is amended by adding a new subsection to read: 31 (g) Beginning January 1, 2030, and every five years thereafter, the Department 01 of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 02 of this section for inflation, using 100 percent of the change over the preceding five 03 calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 04 compiled by the Bureau of Labor Statistics, United States Department of Labor. 05  * Sec. 22. AS 47.25.001(a) is amended to read: 06 (a) The department shall 07 (1) implement and administer a program to assist in providing day care 08 for the children of low and moderate income families according to the requirements of 09 AS 47.25.001 - 47.25.095; 10 (2) establish standards of eligibility for day care benefits; the  11 standards must provide that the maximum monthly household income allowed  12 for a family to participate in the child care assistance program is 105 percent of  13 the median household income for the state, adjusted for family size; 14 (3) contract for the care of children of eligible families; 15 (4) establish procedures to periodically review the needs of families 16 receiving day care benefits; 17 (5) provide notification to the local government body of the request for 18 a contract with a day care facility;  19 (6) establish an electronic application for assistance and allow an 20 applicant to submit an application in electronic format or in other formats required by 21 state and federal law; the electronic application must inform an applicant that a false 22 statement made on the application will be investigated and is punishable under 23 AS 11.56.210. 24  * Sec. 23. AS 47.25.041 is amended to read: 25 Sec. 47.25.041. Contributions by parent or guardian. The department shall 26 develop a sliding fee scale [BASED ON THE FACTORS LISTED IN AS 47.25.031] 27 for purposes of determining the amount to be contributed by the parent or guardian for 28 child care based on the factors listed in AS 47.25.031 and the actual average cost  29 of providing child care as determined under AS 47.25.071(c) at the day care  30 facility chosen by the parent or guardian under AS 47.25.051(a). The contribution 31 of the parent or guardian shall be paid to the day care facility. 01  * Sec. 24. AS 47.25.071(c) is amended to read: 02 (c) A grant under (a) of this section shall be calculated based on the actual  03 average cost of providing child care at a child care facility each [MAY NOT 04 EXCEED $50 PER] month for each child the child care facility cares for, or for each 05 full-time equivalent, as determined by the department. The grant shall be adjusted on a 06 geographic basis by the same factor as funding for a school district is adjusted in 07 AS 14.17.460. 08  * Sec. 25. AS 47.25.071 is amended by adding a new subsection to read: 09 (i) In addition to the grants provided in (a) and (d) of this section, the 10 department may, subject to appropriations for that purpose, provide grants to the 11 highest performing and highest quality child care facilities in the state. The department 12 may use quality recognition and improvement system metrics to determine the highest 13 performing and highest quality child care facilities in the state. To receive a grant 14 under this subsection, the child care facility must be currently licensed under AS 47.32 15 and applicable municipal licensing requirements. 16  * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 CHILD CARE AND DEVELOPMENT FUND PLAN FEDERAL APPROVAL. To 19 the extent necessary to implement secs. 22 and 24 of this Act, the Department of Health shall 20 amend and submit for federal approval the state plan for the day care assistance program 21 consistent with AS 47.25.001(a), as amended by sec. 22 of this Act, and the child care grant 22 program consistent with AS 47.25.071(c), as amended by sec. 24 of this Act. 23  * Sec. 27. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 CONDITIONAL EFFECT; NOTIFICATION. (a) This Act takes effect only if, on or 26 before January 1, 2024, the United States Department of Health and Human Services 27 (1) approves the amendments to the state plan for day care assistance 28 eligibility made by AS 47.25.001(a), as amended by sec. 22 of this Act, and child care grant 29 coverage made by AS 47.25.071(c), as amended by sec. 24 of this Act; or 30 (2) determines that approval of the amendments to the state plan for the day 31 care assistance program and child care grant program is not necessary. 01 (b) The commissioner of health shall notify the revisor of statutes in writing within 30 02 days after the United States Department of Health and Human Services approves amendments 03 to the state plan or determines that approval is not necessary under (a)(1) or (2) of this section. 04  * Sec. 28. Section 37, ch. 61, SLA 2014, as amended by sec. 40, ch. 101, SLA 2018, is 05 amended to read: 06 Sec. 37. Sections 1, 2, and 21, ch. 61, SLA 2014, [OF THIS ACT] take effect 07 January 1, 2028 [2025]. 08  * Sec. 29. Section 28 of this Act takes effect immediately under AS 01.10.070(c). 09  * Sec. 30. If secs. 22 and 24 of this Act take effect, they take effect on the day after the date 10 the United States Department of Health and Human Services approves the corresponding 11 amendment to the state plan or determines that approval is not necessary. 12  * Sec. 31. Except as provided in secs. 29 and 30 of this Act, this Act takes effect January 1, 13 2024.