SB 149: "An Act providing a tax credit for certain contributions to a qualified dog mushing corporation."
00 SENATE BILL NO. 149 01 "An Act providing a tax credit for certain contributions to a qualified dog mushing 02 corporation." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.98 is amended by adding a new section to read: 05 Sec. 43.98.040. Dog mushing tax credit. (a) A taxpayer is allowed a tax credit 06 against the tax due under AS 21.09.210, AS 21.66.110, or this title for a contribution 07 accepted by a qualified dog mushing corporation and used for conducting dog 08 mushing contests in the state. 09 (b) The amount of credit for a contribution to a qualified dog mushing 10 corporation is limited by the amount of credits authorized for a qualified dog mushing 11 corporation as described in (c) of this section and the amount of the contribution as 12 described in (d) of this section. 13 (c) A qualified dog mushing corporation that has conducted a dog mushing 14 race with a prize of not less than $5,000 within the two-year period immediately
01 preceding the date of application may apply for authorization to accept contributions 02 for which a credit may be authorized under this section. The department shall 03 authorize the amount of credits that may be allowed for contributions to each qualified 04 dog mushing corporation in a calendar year based on the total expenditures for 05 conducting dog mushing contests in the state during the calendar year immediately 06 preceding the calendar year for which the qualified dog mushing corporation applies 07 for authorization to accept contributions for which a credit may be allowed. A 08 taxpayer may not receive a credit for a contribution to a qualified dog mushing 09 corporation if the amount of the credit, when combined with all other credits for 10 contributions to that qualified dog mushing corporation, exceeds the amount 11 authorized for the qualified dog mushing corporation under (1) - (3) of this subsection. 12 If the total calendar year expenditures for the qualified dog mushing corporation are 13 (1) less than $500,000, the authorized credit is $12,500; 14 (2) $500,000 or more but less than $1,000,000, the authorized credit is 15 $25,000; 16 (3) $1,000,000 or more, the authorized credit is $50,000. 17 (d) A taxpayer making a contribution to a qualified dog mushing corporation 18 may not receive a credit under this section for a donation of more than a total of 19 $25,000 or for a donation of less than $2,000 in a calendar year. Except as limited by 20 (e) of this section, if the total contributions by a taxpayer to each qualified dog 21 mushing corporation in a calendar year are 22 (1) $2,000 or more but not more than $5,000, 50 percent of the 23 contribution may be taken as a credit; 24 (2) more than $5,000 but not more than $10,000, $2,500 plus 33 25 percent of the amount greater than $5,000 may be taken as a credit; 26 (3) more than $10,000 but not more than $25,000, $4,150 plus 25 27 percent of the amount greater than $10,000 may be taken as a credit; 28 (4) $25,000 or more, $7,900 may be taken as a credit. 29 (e) A qualified dog mushing corporation authorized to accept contributions 30 eligible for a credit under (c) of this section shall keep a record of all contributions 31 received during a calendar year and the amount of credits for those contributions based
01 on (d) of this section and information provided by persons making a contribution. The 02 qualified dog mushing corporation shall provide a taxpayer notice of the amount of 03 credit available for a contribution before accepting a contribution. A taxpayer making 04 a contribution for which a credit may not be allowed because of the limitation in (c) of 05 this section may request the amount of contribution for which a credit may not be 06 allowed to be returned, and the qualified dog mushing corporation receiving a request 07 under this subsection shall return the requested amount of the contribution to the 08 taxpayer making the request. 09 (f) A qualified dog mushing corporation applying for an authorized amount of 10 credits under (c) of this section shall submit a statement of the corporation's 11 expenditures at the time of application and other information required by the 12 department. The statement of expenditures must be submitted with certification by a 13 certified public accountant certified under AS 08.04 as to the correctness of the 14 amount of expenditures. 15 (g) A credit or portion of a credit under this section may not be used to reduce 16 a person's tax liability for any calendar year below zero, and any unused credit or 17 portion of a credit not used may be applied in a later calendar year. 18 (h) The department 19 (1) shall adopt regulations that establish the date for submitting an 20 application for authorization to accept contributions for which a credit may be allowed 21 under (c) of this section and information that must be submitted with the application; 22 (2) may 23 (A) adopt regulations necessary for the administration of this 24 section; 25 (B) audit a taxpayer claiming a credit under this section and a 26 qualified dog mushing corporation for the purpose of verifying the amount of 27 credit for which a taxpayer is eligible and the eligibility of a qualified dog 28 mushing corporation to receive a contribution for which a credit may be 29 authorized; the audit of a person claiming a credit against the tax due under 30 AS 21.09.210 or AS 21.66.110 shall be conducted in consultation with the 31 commissioner of commerce, community, and economic development.
01 (i) In this section, 02 (1) "qualified dog mushing corporation" means a nonprofit corporation 03 organized under AS 10.20 for the purpose of promoting dog mushing and conducting 04 competitive activities directly related to dog mushing and other purposes that 05 (A) has received a certificate of incorporation from the 06 Department of Commerce, Community, and Economic Development; and 07 (B) has not been dissolved; 08 (2) "taxpayer" means a person subject to tax under AS 21.09.210, 09 AS 21.66.110, or this title.