CSHB 169(HES): "An Act creating a welfare-to-work tax credit under the Alaska Net Income Tax Act; relating to the federal work opportunity tax credit and the federal welfare-to-work tax credit; and providing for an effective date."
00CS FOR HOUSE BILL NO. 169(HES) 01 "An Act creating a welfare-to-work tax credit under the Alaska Net Income Tax 02 Act; relating to the federal work opportunity tax credit and the federal welfare- 03 to-work tax credit; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 23.20.030 is amended by adding a new subsection to read: 06 (d) The department shall prescribe standards for the director to administer and 07 implement the certifications required by the director for the tax credit under 08 AS 43.20.046. 09 * Sec. 2. AS 43.20.036 is amended by adding a new subsection to read: 10 (k) For purposes of calculating the income tax payable under this chapter, the 11 taxpayer may not apply as a credit against tax liability 12 (1) the work opportunity tax credit allowed as to federal taxes under 13 26 U.S.C. 51; or 14 (2) the welfare-to-work credit allowed as to federal taxes under 26
01 U.S.C. 51A. 02 * Sec. 3. AS 43.20 is amended by adding a new section to article 1 to read: 03 Sec. 43.20.046. Alaska welfare-to-work tax credit. (a) A taxpayer is 04 eligible for a tax credit as provided in this section. 05 (b) A taxpayer may apply as a credit against the tax imposed by this chapter 06 15 percent of wages paid in any tax year beginning after December 31, 1997, but 07 before January 1, 2001, to an employee who qualifies under (d) of this section. Except 08 as provided in (c) of this section, the credit may not exceed $1,000 for each qualified 09 employee. 10 (c) After claiming the credit allowed in (b) of this section, a taxpayer may 11 claim additional credit of 15 percent of wages paid in a tax year beginning after 12 December 31, 1997, but before January 1, 2001, to an employee who qualifies under 13 (d) of this section if the commissioner of health and social services or the 14 commissioner's designee certifies that the taxpayer provided on-the-job training to that 15 employee and the training met standards for work activities under AS 47.27. The 16 additional credit under this subsection may not exceed $500 for each qualified 17 employee. 18 (d) An employee qualifies for purposes of the tax credit under this section if 19 the director of employment security appointed under AS 23.20.030(a) certifies that 20 (1) the employee meets the criteria for 21 (A) the federal work opportunity tax credit under 26 U.S.C. 51, 22 as in effect on January 1, 1998; or 23 (B) the federal welfare-to-work credit under 26 U.S.C. 51A, as 24 in effect on January 1, 1998; and 25 (2) either 26 (A) some or all of the activities that qualified the employee to 27 meet the criteria described in (1) of this subsection occurred in this state; or 28 (B) at the time of hire, the employee or the employee's 29 immediate family is receiving or is eligible for assistance under AS 47. 30 (e) A taxpayer may claim the credit under this section if the taxpayer employs 31 the qualified employee for a total of 180 days or 400 hours after December 31, 1997,
01 regardless of whether 02 (1) the federal credits in 26 U.S.C. 51 or 26 U.S.C. 51A are no longer 03 in effect; or 04 (2) the employee has intervening layoffs and rehires by the employer 05 during the time that total work hours or days are being accumulated. 06 (f) An employer may not claim a credit more than once under (b) and (c) of 07 this section for the same employee. 08 (g) A taxpayer may not claim the tax credit allowed under this section if the 09 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 10 this title. For purposes of this subsection, a taxpayer is not in arrears if the 11 contribution or tax liability is under administrative or judicial appeal. 12 (h) An unused tax credit available under (b) or (c) of this section may be 13 carried forward to the following two tax years. 14 * Sec. 4. AS 23.20.030(d) and AS 43.20.046 are repealed. 15 * Sec. 5. Sections 1 - 3 of this Act are retroactive to January 1, 1998. 16 * Sec. 6. Sections 1 - 3 and 5 of this Act take effect immediately under AS 01.10.070(c). 17 * Sec. 7. Section 4 of this Act takes effect December 1, 2003.