00                      CS FOR HOUSE BILL NO. 252(L&C)                                                                    
01 "An Act exempting certain small businesses from the corporate income tax; and                                           
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 43.20.012 is amended to read:                                                                      
05            Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax                               
06       imposed by this chapter does not                                                                                  
07                 (1)  apply to an individual;                                                                        
08                 (2)  apply to a fiduciary; or                                                                       
09                 (3)  for a tax year beginning after December 31, 2012, apply to an                                  
10       Alaska corporation that is a qualified small business and that meets the active                               
11       business requirement in 26 U.S.C. 1202(e) as that subsection read on January 1,                               
12       2012 [APPLY TO INDIVIDUALS OR TO FIDUCIARIES].                                                                
13            (b)  An [HOWEVER, AN] individual may file a return under this chapter in                                 
14       order to receive a tax credit under AS 43.20.013.                                                                 

01    * Sec. 2. AS 43.20.012 is amended by adding new subsections to read:                                               
02            (c)  For the purposes of (a)(3) of this section,                                                             
03                 (1)  whether a corporation qualifies under (a)(3) of this section shall be                              
04       determined on the first day of the tax year for which the corporation claims it qualifies                         
05       under (a)(3) of this section;                                                                                     
06                 (2)  all corporations that are members of the same parent-subsidiary                                    
07       controlled group shall be treated as one corporation.                                                             
08            (d)  In this section,                                                                                        
09                 (1)  "Alaska corporation" means a corporation that has been                                             
10       incorporated in the state or is authorized to do business in the state;                                           
11                 (2)  "parent-subsidiary controlled group" and "qualified small business"                                
12       have the meanings given in 26 U.S.C. 1202 as that section read on January 1, 2012.                                
13    * Sec. 3. AS 43.20.012 is repealed and reenacted to read:                                                          
14            Sec. 43.20.012. Limitation on application of chapter; credits. The tax                                     
15       imposed by this chapter does not apply to individuals or to fiduciaries. However, an                              
16       individual may file a return under this chapter to receive a tax credit under                                     
17       AS 43.20.013.                                                                                                     
18    * Sec. 4. Sections 1 and 2 of this Act take effect July 1, 2012.                                                   
19    * Sec. 5. Section 3 of this Act takes effect July 1, 2023.