HB 194: "An Act relating to credits against certain taxes for contributions for educational purposes; and providing for an effective date."
00HOUSE BILL NO. 194 01 "An Act relating to credits against certain taxes for contributions for educational 02 purposes; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS AND PURPOSE. (a) The legislature finds that 05 (1) academic and vocational education programs are vital to an expanding 06 economy and to preparing young Alaskans for good jobs; 07 (2) Alaska businesses benefit from the educational infrastructure provided 08 by Alaska school districts and universities, and should be encouraged to invest in this 09 infrastructure; and 10 (3) Alaska's school districts and universities, in turn, should be encouraged 11 to seek support from Alaska businesses and to respond to the needs of the business 12 community. 13 (b) The purpose of this Act is to encourage 14 (1) business and school partnerships by offering an increase in the education
01 tax credit for contributions to postsecondary education and by creating a tax credit for 02 contributions to school districts; 03 (2) Alaska schools and universities to offer academic and vocational 04 programs that meet the needs of Alaska's business community; and 05 (3) the continuation of these business and school partnerships after these 06 credits expire. 07 * Sec. 2. AS 21.89.070(a) is amended to read: 08 (a) A taxpayer is allowed a credit against the tax due under AS 21.09.210 or 09 AS 21.66.110 for cash contributions for direct instruction, research, and educational 10 support purposes, including library and museum acquisitions, and contributions to 11 endowment, that are accepted by a nonprofit, public or private, Alaska two-year or 12 four-year college or university accredited by a regional accreditation association or that 13 are accepted by an Alaska university foundation that supports a university or college 14 that could receive a contribution for which a taxpayer may obtain a credit under this 15 section. The amount of the credit is the lesser of 16 (1) an amount equal to 17 (A) 50 percent of contributions of not more than $100,000; 18 [AND] 19 (B) 100 percent of the next $100,000 of contributions; and 20 (C) 50 percent of the next $150,000 of contributions made 21 in a tax year beginning before January 1, 2002; or 22 (2) 50 percent of the taxpayer's tax liability under this title. 23 * Sec. 3. AS 21.89.070(c) is amended to read: 24 (c) A contribution claimed as a credit under this section may not 25 (1) be claimed as a credit under more than one provision of this title; 26 and 27 (2) when combined with credits taken during the taxpayer's tax year 28 under AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, AS 43.75.018, or 29 AS 43.77.045, exceed $150,000, except that for contributions made in a tax year 30 beginning before January 1, 2002, the yearly combined tax credit claimed under 31 these provisions may not exceed $225,000.
01 * Sec. 4. AS 21.89.070 is amended by adding a new subsection to read: 02 (d) A taxpayer may not claim the tax credit allowed under this section if the 03 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 04 this title. For purposes of this subsection, a taxpayer is not in arrears if the 05 contribution or tax liability is under administrative or judicial appeal. 06 * Sec. 5. AS 21.89 is amended by adding a new section to read: 07 Sec. 21.89.071. Insurance tax credit for contributions to school districts. 08 (a) A taxpayer may claim as a credit against the tax due under AS 21.09.210 or 09 AS 21.66.110 an amount equal to 50 percent of cash contributions made in a tax year 10 beginning after December 31, 1996, but beginning before January 1, 2002, of not more 11 than $100,000 accepted by a school district in this state. 12 (b) A contribution claimed as a credit under this section may not 13 (1) be claimed as a credit under another provision of this title; and 14 (2) when combined with credits taken during the taxpayer's tax year 15 under AS 43.20.018, AS 43.55.021, AS 43.56.019, or AS 43.65.019, exceed $50,000. 16 (c) A taxpayer may not claim the tax credit allowed under this section if the 17 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 18 this title. For purposes of this subsection, a taxpayer is not in arrears if the 19 contribution or tax liability is under administrative or judicial appeal. 20 (d) For purposes of this section, "school district" has the meaning given the 21 term "district" in AS 14.17.250. 22 * Sec. 6. AS 43.20.014(a) is amended to read: 23 (a) For cash contributions accepted for direct instruction, research, and 24 educational support purposes, including library and museum acquisitions, and 25 contributions to endowment, by an Alaska university foundation or by a nonprofit, 26 public or private, Alaska two-year or four-year college accredited by a regional 27 accreditation association, a taxpayer is allowed as a credit against the tax due under 28 this chapter 29 (1) 50 percent of contributions of not more than $100,000; [AND] 30 (2) 100 percent of the next $100,000 of contributions; and 31 (3) 50 percent of the next $150,000 of contributions made in a tax
01 year beginning before January 1, 2002. 02 * Sec. 7. AS 43.20.014(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; 05 (2) also be allowed as a deduction under 26 U.S.C. 170 against the tax 06 imposed by this chapter; and 07 (3) when combined with credits taken during the taxpayer's tax year 08 under AS 21.89.070, AS 43.55.019, AS 43.56.018, AS 43.65.018, AS 43.75.018, or 09 AS 43.77.045, exceed $150,000, except that for contributions made in a tax year 10 beginning before January 1, 2002, the yearly combined tax credit claimed under 11 these provisions may not exceed $225,000. 12 * Sec. 8. AS 43.20.014 is amended by adding a new subsection to read: 13 (e) A taxpayer may not claim the tax credit allowed under this section if the 14 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 15 this title. For purposes of this subsection, a taxpayer is not in arrears if the 16 contribution or tax liability is under administrative or judicial appeal. 17 * Sec. 9. AS 43.20 is amended by adding a new section to read: 18 Sec. 43.20.018. Income tax school district contribution credit. (a) A 19 taxpayer may claim as a credit against the tax due under this chapter an amount equal 20 to 50 percent of cash contributions made in a tax year beginning after 21 December 31, 1996, but beginning before January 1, 2002, of not more than $100,000 22 accepted by a school district in this state. 23 (b) A contribution claimed as a credit under this section may not 24 (1) be claimed as a credit under another provision of this title; and 25 (2) when combined with credits taken during the taxpayer's tax year 26 under AS 21.89.071, AS 43.55.021, AS 43.56.019, or AS 43.65.019, exceed $50,000. 27 (c) A taxpayer may not claim the tax credit allowed under this section if the 28 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 29 this title. For purposes of this subsection, a taxpayer is not in arrears if the 30 contribution or tax liability is under administrative or judicial appeal. 31 (d) For purposes of this section, "school district" has the meaning given the
01 term "district" in AS 14.17.250. 02 * Sec. 10. AS 43.55.019(a) is amended to read: 03 (a) For cash contributions accepted for direct instruction, research, and 04 educational support purposes, including library and museum acquisitions, and 05 contributions to endowment, by an Alaska university foundation or by a nonprofit, 06 public or private, Alaska two-year or four-year college accredited by a regional 07 accreditation association, a producer of oil or gas is allowed as a credit against the tax 08 due under this chapter 09 (1) 50 percent of contributions of not more than $100,000; [AND] 10 (2) 100 percent of the next $100,000 of contributions; and 11 (3) 50 percent of the next $150,000 of contributions made in a tax 12 year beginning before January 1, 2002. 13 * Sec. 11. AS 43.55.019(d) is amended to read: 14 (d) A contribution claimed as a credit under this section may not 15 (1) be claimed as a credit under another provision of this title; and 16 (2) when combined with credits taken during the taxpayer's tax year 17 under AS 21.89.070, AS 43.20.014, AS 43.56.018, AS 43.65.018, AS 43.75.018, or 18 AS 43.77.045, exceed $150,000, except that for contributions made in a tax year 19 beginning before January 1, 2002, the yearly combined tax credit claimed under 20 these provisions may not exceed $225,000. 21 * Sec. 12. AS 43.55.019 is amended by adding a new subsection to read: 22 (f) A taxpayer may not claim the tax credit allowed under this section if the 23 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 24 this title. For purposes of this subsection, a taxpayer is not in arrears if the 25 contribution or tax liability is under administrative or judicial appeal. 26 * Sec. 13. AS 43.55 is amended by adding a new section to read: 27 Sec. 43.55.021. Oil or gas producer school district contribution tax credit. 28 (a) A taxpayer may claim as a credit against the tax due under this chapter an amount 29 equal to 50 percent of cash contributions made in a tax year beginning after 30 December 31, 1996, but beginning before January 1, 2002, of not more than $100,000 31 accepted by a school district in this state.
01 (b) A contribution claimed as a credit under this section may not 02 (1) be claimed as a credit under another provision of this title; and 03 (2) when combined with credits taken during the taxpayer's tax year 04 under AS 21.89.071, AS 43.20.018, AS 43.56.019, or AS 43.65.019, exceed $50,000. 05 (c) A taxpayer may not claim the tax credit allowed under this section if the 06 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 07 this title. For purposes of this subsection, a taxpayer is not in arrears if the 08 contribution or tax liability is under administrative or judicial appeal. 09 (d) For purposes of this section, "school district" has the meaning given the 10 term "district" in AS 14.17.250. 11 * Sec. 14. AS 43.56.018(a) is amended to read: 12 (a) For cash contributions accepted for direct instruction, research, and 13 educational support purposes, including library and museum acquisitions, and 14 contributions to endowment, by an Alaska university foundation or by a nonprofit, 15 public or private, Alaska two-year or four-year college accredited by a regional 16 accreditation association, the owner of property taxable under this chapter is allowed 17 as a credit against the tax due under this chapter 18 (1) 50 percent of contributions of not more than $100,000; [AND] 19 (2) 100 percent of the next $100,000 of contributions; and 20 (3) 50 percent of the next $150,000 of contributions made in a tax 21 year beginning before January 1, 2002. 22 * Sec. 15. AS 43.56.018(d) is amended to read: 23 (d) A contribution claimed as a credit under this section may not 24 (1) be claimed as a credit under another provision of this title; and 25 (2) when combined with credits taken during the taxpayer's tax year 26 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.65.018, AS 43.75.018, or 27 AS 43.77.045, exceed $150,000, except that for contributions made in a tax year 28 beginning before January 1, 2002, the yearly combined tax credit claimed under 29 these provisions may not exceed $225,000. 30 * Sec. 16. AS 43.56.018 is amended by adding a new subsection to read: 31 (f) A taxpayer may not claim the tax credit allowed under this section if the
01 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 02 this title. For purposes of this subsection, a taxpayer is not in arrears if the 03 contribution or tax liability is under administrative or judicial appeal. 04 * Sec. 17. AS 43.56 is amended by adding a new section to read: 05 Sec. 43.56.019. Oil or gas property school district contribution tax credit. 06 (a) A taxpayer may claim as a credit against the tax due under this chapter an amount 07 equal to 50 percent of cash contributions made in a tax year beginning after 08 December 31, 1996, but beginning before January 1, 2002, of not more than $100,000 09 accepted by a school district in this state. 10 (b) A contribution claimed as a credit under this section may not 11 (1) be claimed as a credit under another provision of this title; and 12 (2) when combined with credits taken during the taxpayer's tax year 13 under AS 21.89.071, AS 43.20.018, AS 43.55.021, or AS 43.65.019, exceed $50,000. 14 (c) A taxpayer may not claim the tax credit allowed under this section if the 15 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 16 this title. For purposes of this subsection, a taxpayer is not in arrears if the 17 contribution or tax liability is under administrative or judicial appeal. 18 (d) For purposes of this section, "school district" has the meaning given the 19 term "district" in AS 14.17.250. 20 * Sec. 18. AS 43.65.018(a) is amended to read: 21 (a) For cash contributions accepted for direct instruction, research, and 22 educational support purposes, including library and museum acquisitions, and 23 contributions to endowment, by an Alaska university foundation or by a nonprofit 24 public or private, Alaska two-year or four-year college accredited by a regional 25 accreditation association, a person engaged in the business of mining in the state is 26 allowed as a credit against the tax due under this chapter 27 (1) 50 percent of contributions of not more than $100,000; [AND] 28 (2) 100 percent of the next $100,000 of contributions; and 29 (3) 50 percent of the next $150,000 of contributions made in a tax 30 year beginning before January 1, 2002. 31 * Sec. 19. AS 43.65.018(d) is amended to read:
01 (d) A contribution claimed as a credit under this section may not 02 (1) be claimed as a credit under another provision of this title; and 03 (2) when combined with credits taken during the taxpayer's tax year 04 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.75.018, or 05 AS 43.77.045, exceed $150,000, except that for contributions made in a tax year 06 beginning before January 1, 2002, the yearly combined tax credit claimed under 07 these provisions may not exceed $225,000. 08 * Sec. 20. AS 43.65.018 is amended by adding a new subsection to read: 09 (e) A taxpayer may not claim the tax credit allowed under this section if the 10 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 11 this title. For purposes of this subsection, a taxpayer is not in arrears if the 12 contribution or tax liability is under administrative or judicial appeal. 13 * Sec. 21. AS 43.65 is amended by adding a new section to read: 14 Sec. 43.65.019. Mining business school district contribution tax credit. (a) 15 A taxpayer may claim as a credit against the tax due under this chapter an amount 16 equal to 50 percent of cash contributions made in a tax year beginning after 17 December 31, 1996, but beginning before January 1, 2002, of not more than $100,000 18 accepted by a school district in this state. 19 (b) A contribution claimed as a credit under this section may not 20 (1) be claimed as a credit under another provision of this title; and 21 (2) when combined with credits taken during the taxpayer's tax year 22 under AS 21.89.071, AS 43.20.018, AS 43.55.021, or AS 43.56.019, exceed $50,000. 23 (c) A taxpayer may not claim the tax credit allowed under this section if the 24 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 25 this title. For purposes of this subsection, a taxpayer is not in arrears if the 26 contribution or tax liability is under administrative or judicial appeal. 27 (d) For purposes of this section, "school district" has the meaning given the 28 term "district" in AS 14.17.250. 29 * Sec. 22. AS 43.75.018(a) is amended to read: 30 (a) For cash contributions accepted for direct instruction, research, and 31 educational support purposes, including library and museum acquisitions and
01 contributions to endowment, by an Alaska university foundation or by a nonprofit, 02 public or private, Alaska two-year or four-year college accredited by a regional 03 accreditation association, a person engaged in a fisheries business is allowed as a credit 04 against the tax due under this chapter 05 (1) 50 percent of contributions of not more than $100,000; [AND] 06 (2) 100 percent of the next $100,000 of contributions; and 07 (3) 50 percent of the next $150,000 of contributions made in a tax 08 year beginning before January 1, 2002. 09 * Sec. 23. AS 43.75.018(d) is amended to read: 10 (d) A contribution claimed as a credit under this section may not 11 (1) be claimed as a credit under another provision of this title; and 12 (2) when combined with credits taken during the taxpayer's tax year 13 under AS 21.89.070, AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, or 14 AS 43.77.045, exceed $150,000, except that for contributions made in a tax year 15 beginning before January 1, 2002, the yearly combined tax credit claimed under 16 these provisions may not exceed $225,000. 17 * Sec. 24. AS 43.75.018 is amended by adding a new subsection to read: 18 (e) A taxpayer may not claim the tax credit allowed under this section if the 19 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 20 this title. For purposes of this subsection, a taxpayer is not in arrears if the 21 contribution or tax liability is under administrative or judicial appeal. 22 * Sec. 25. AS 43.77.045(a) is amended to read: 23 (a) In addition to the credit allowed under AS 43.77.040, for cash contributions 24 accepted for direct instruction, research, and educational support purposes, including 25 library and museum acquisitions and contributions to endowment, by an Alaska 26 university foundation or by a nonprofit, public or private, Alaska two-year or four-year 27 college accredited by a regional accreditation association, a person engaged in a 28 floating fisheries business is allowed as a credit against the tax due under this chapter 29 (1) 50 percent of contributions of not more than $100,000; [AND] 30 (2) 100 percent of the next $100,000 of contributions; and 31 (3) 50 percent of the next $150,000 of contributions made in a tax
01 year beginning before January 1, 2002. 02 * Sec. 26. AS 43.77.045(c) is amended to read: 03 (c) 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 43.56.018, AS 43.65.018, or 07 AS 43.75.018, exceed $150,000, except that for contributions made in a tax year 08 beginning before January 1, 2002, the yearly combined tax credit claimed under 09 these provisions may not exceed $225,000. 10 * Sec. 27. AS 43.77.045 is amended by adding a new subsection to read: 11 (d) A taxpayer may not claim the tax credit allowed under this section if the 12 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 13 this title. For purposes of this subsection, a taxpayer is not in arrears if the 14 contribution or tax liability is under administrative or judicial appeal. 15 * Sec. 28. Sections 5, 9, 13, 17, and 21 of this Act are repealed. 16 * Sec. 29. Sections 1 - 27 of this Act are retroactive to January 1, 1997. 17 * Sec. 30. Sections 1 - 27 and 29 of this Act take effect immediately under 18 AS 01.10.070(c). 19 * Sec. 31. Section 28 of this Act takes effect December 1, 2002.