Enrolled SB 7: Relating to the computation of the tax on the taxable income of a corporation derived from sources within the state; relating to the ineligibility and eligibility of certain productions to receive a film production tax credit; and providing for an effective date.
00Enrolled SB 7 01 Relating to the computation of the tax on the taxable income of a corporation derived from 02 sources within the state; relating to the ineligibility and eligibility of certain productions to 03 receive a film production tax credit; and providing for an effective date. 04 _______________ 05 * Section 1. AS 43.20.011(e) is amended to read: 06 (e) There is imposed for each taxable year upon the entire taxable income of 07 every corporation derived from sources within the state a tax computed as follows: 08 If the taxable income is: Then the tax is: 09 Less than $25,000 [$10,000] zero [1 PERCENT OF THE 10 TAXABLE INCOME] 11 $25,000 [$10,000] but less than [$100 PLUS] 2 percent of the 12 $49,000 [$20,000] taxable income over $25,000 13 [$10,000]
01 $49,000 [$20,000] but less than $480 [$300] plus 3 percent of the 02 $74,000 [$30,000] taxable income over $49,000 03 [$20,000] 04 $74,000 [$30,000] but less than $1,230 [$600] plus 4 percent of the 05 $99,000 [$40,000] taxable income over $74,000 06 [$30,000] 07 $99,000 [$40,000] but less than $2,230 [$1,000] plus 5 percent of the 08 $124,000 [$50,000] taxable income over $99,000 09 [$40,000] 10 $124,000 [$50,000] but less than $3,480 [$1,500] plus 6 percent of the 11 $148,000 [$60,000] taxable income over $124,000 12 [$50,000] 13 $148,000 [$60,000] but less than $4,920 [$2,100] plus 7 percent of the 14 $173,000 [$70,000] taxable income over $148,000 15 [$60,000] 16 $173,000 [$70,000] but less than $6,670 [$2,800] plus 8 percent of the 17 $198,000 [$80,000] taxable income over $173,000 18 [$70,000] 19 $198,000 [$80,000] but less than $8,670 [$3,600] plus 9 percent of the 20 $222,000 [$90,000] taxable income over $198,000 21 [$80,000] 22 $222,000 [$90,000] or more $10,830 [$4,500] plus 9.4 percent of 23 the taxable income over $222,000 24 [$90,000]. 25 * Sec. 2. AS 44.25.115, as enacted by sec. 28, ch. 51, SLA 2012, is amended by adding a 26 new subsection to read: 27 (c) The following productions are not eligible, regardless of the production 28 costs: 29 (1) news, weather, or current events programming; 30 (2) a production produced primarily for industrial, corporate, or 31 institutional purposes, and for internal use;
01 (3) an advertisement, infomercial, or any other production that solicits 02 funds, except for a commercial television advertisement produced for national 03 distribution; 04 (4) a political advertisement; or 05 (5) a production that is determined by the film office to contain 06 sexually explicit conduct as defined in 18 U.S.C. 2256. 07 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 APPLICABILITY. AS 43.20.011(e), as amended by sec. 1 of this Act, applies to the 10 taxable income of a corporation derived from sources within the state during a taxable year 11 that begins on or after the effective date of sec. 1 of this Act. 12 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION. Subject to AS 43.98.030(f), as that subsection read on June 30, 2013, 15 secs. 30 and 31, ch. 51, SLA 2012, do not prohibit the film office from determining a film 16 production's qualified expenditures, awarding a tax credit, or reviewing a tax credit for a 17 production that has received a notice of qualification under former AS 44.33.234 before 18 July 1, 2013, or the Department of Revenue from providing a transferable film production tax 19 credit to a producer under former AS 43.98.030, by applying the former provisions repealed 20 by secs. 30 and 31, ch. 51, SLA 2012, the regulations adopted by the Department of 21 Commerce, Community, and Economic Development under former AS 44.33.238, and the 22 regulations adopted by the Department of Revenue under former AS 43.98.030. 23 * Sec. 5. Sections 2 and 4 of this Act take effect July 1, 2013.