SB 225: "An Act relating to credits against certain insurance taxes for contributions to certain educational institutions; and providing for an effective date."
00SENATE BILL NO. 225 01 "An Act relating to credits against certain insurance taxes for contributions to 02 certain educational institutions; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 21.09.210 is amended by adding a new subsection to read: 05 (j) The provisions of AS 21.89.070 apply to a taxpayer who is required to pay 06 a tax due under this section. 07 * Sec. 2. AS 21.66.110 is amended by adding a new subsection to read: 08 (b) The provisions of AS 21.89.070 apply to a taxpayer who is required to pay 09 the tax due under this section. 10 * Sec. 3. AS 21.89 is amended by adding a new section to read: 11 Sec. 21.89.070. INSURANCE TAX CREDIT FOR GIFTS TO COLLEGES. 12 (a) For cash contributions accepted for direct instruction, research, and educational 13 support purposes, including library and museum acquisitions, and contributions to 14 endowment, by a nonprofit, public or private, Alaska two-year or four-year college or
01 by an Alaska university foundation accredited by a regional accreditation association, 02 a taxpayer is allowed as a credit against the tax due under AS 21.09.210 or 03 AS 21.66.110 the lesser of 04 (1) an amount equal to 05 (A) 50 percent of contributions of not more than $100,000; and 06 (B) 100 percent of the next $100,000 of contributions; or 07 (2) 50 percent of the taxpayer's tax liability under this title. 08 (b) By September 30 of each year, the Department of Commerce and 09 Economic Development shall report to the Legislative Budget and Audit Committee 10 on the credits taken during the preceding state fiscal year under this section. Each 11 public college and university shall include in its annual operating budget request 12 contributions received and how the contributions were used. 13 (c) A contribution claimed as a credit under this section 14 (1) may not be claimed as a credit under more than one provision of 15 this title; and 16 (2) may not, when combined with credits taken during the taxpayer's 17 tax year under AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, or 18 AS 43.75.018, exceed $150,000. 19 * Sec. 4. AS 43.20.014(d) is amended to read: 20 (d) A contribution claimed as a credit under this section 21 (1) may not be claimed as a credit under another provision of this title; 22 (2) may not also be allowed as a deduction under 26 U.S.C. 170 against 23 the tax imposed by this chapter; and 24 (3) may not, when combined with credits taken during the taxpayer's 25 tax year under AS 21.89.070, AS 43.55.019, AS 43.56.018, AS 43.65.018, or 26 AS 43.75.018, exceed $150,000. 27 * Sec. 5. AS 43.55.019(d) is amended to read: 28 (d) A contribution claimed as a credit under this section may not 29 (1) be claimed as a credit under another provision of this title; and 30 (2) when combined with credits taken during the taxpayer's tax year 31 under AS 21.89.070, AS 43.20.014, AS 43.56.018, AS 43.65.018, or AS 43.75.018,
01 exceed $150,000. 02 * Sec. 6. AS 43.56.018(d) is amended to read: 03 (d) A contribution claimed as a credit under this section may not 04 (1) be claimed as a credit under another provision of this title; and 05 (2) when combined with credits taken during the taxpayer's tax year 06 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.65.018, or AS 43.75.018, 07 exceed $150,000. 08 * Sec. 7. AS 43.65.018(d) is amended to read: 09 (d) A contribution claimed as a credit under this section may not 10 (1) be claimed as a credit under another provision of this title; and 11 (2) when combined with credits taken during the taxpayer's tax year 12 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, or AS 43.75.018, 13 exceed $150,000. 14 * Sec. 8. AS 43.75.018(d) is amended to read: 15 (d) A contribution claimed as a credit under this section may not 16 (1) be claimed as a credit under another provision of this title; and 17 (2) when combined with credits taken during the taxpayer's tax year 18 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, or AS 43.65.018, 19 exceed $150,000. 20 * Sec. 9. This Act is retroactive to January 1, 1994, and applies to contributions made 21 under AS 21.89.070, added by sec. 3 of this Act, after December 31, 1993. 22 * Sec. 10. This Act takes effect immediately under AS 01.10.070(c).