SB 89: "An Act relating to education tax credits and a tax credit for gifts to the Alaska Fire Standards Council; providing for an effective date by repealing the effective dates in sec. 57, ch. 92, SLA 2010, as amended by sec. 15, ch. 7, FSSLA 2011, and in sec 32, ch. 74, SLA 2012; and providing for an effective date."
00 SENATE BILL NO. 89 01 "An Act relating to education tax credits and a tax credit for gifts to the Alaska Fire 02 Standards Council; providing for an effective date by repealing the effective dates in sec. 03 57, ch. 92, SLA 2010, as amended by sec. 15, ch. 7, FSSLA 2011, and in sec 32, ch. 74, 04 SLA 2012; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 21.96.070(a) is amended to read: 07 (a) A taxpayer is allowed a credit against the tax due under AS 21.09.210 or 08 AS 21.66.110 for cash contributions accepted 09 (1) for direct instruction, research, and educational support purposes, 10 including library and museum acquisitions, and contributions to endowment, by an 11 Alaska university foundation or by a nonprofit, public or private, Alaska two-year or 12 four-year college accredited by a regional accreditation association; 13 (2) for secondary school level vocational education courses, programs, 14 and facilities by a school district in the state;
01 (3) for vocational education courses, programs, and facilities by a 02 state-operated vocational technical education and training school; 03 (4) for a facility or an annual intercollegiate sports tournament by a 04 nonprofit, public or private, Alaska two-year or four-year college accredited by a 05 regional accreditation association; 06 (5) for Alaska Native cultural or heritage programs and educational 07 support, including mentoring and tutoring, provided by a nonprofit agency for public 08 school staff and for students who are in grades kindergarten through 12 in the state; 09 [AND] 10 (6) for education, research, rehabilitation, and facilities by an 11 institution that is located in the state and that qualifies as a coastal ecosystem learning 12 center under the Coastal America Partnership established by the federal government; 13 and 14 (7) for direct instruction or educational support purposes by a 15 public or private nonprofit elementary or secondary school, including a religious 16 school, in the state. 17 * Sec. 2. AS 21.96.070(a), as amended by sec. 1 of this Act, is amended to read: 18 (a) A taxpayer is allowed a credit against the tax due under AS 21.09.210 or 19 AS 21.66.110 for cash contributions accepted 20 (1) for direct instruction, research, and educational support purposes, 21 including library and museum acquisitions, and contributions to endowment, by an 22 Alaska university foundation or by a nonprofit, public or private, Alaska two-year or 23 four-year college accredited by a regional accreditation association; 24 (2) for secondary school level vocational education courses and [,] 25 programs [, AND FACILITIES] by a school district in the state; and 26 (3) [FOR VOCATIONAL EDUCATION COURSES, PROGRAMS, 27 AND FACILITIES] by a state-operated vocational technical education and training 28 school [; 29 (4) FOR A FACILITY OR AN ANNUAL INTERCOLLEGIATE 30 SPORTS TOURNAMENT BY A NONPROFIT, PUBLIC OR PRIVATE, ALASKA 31 TWO-YEAR OR FOUR-YEAR COLLEGE ACCREDITED BY A REGIONAL
01 ACCREDITATION ASSOCIATION; 02 (5) FOR ALASKA NATIVE CULTURAL OR HERITAGE 03 PROGRAMS AND EDUCATIONAL SUPPORT, INCLUDING MENTORING AND 04 TUTORING, PROVIDED BY A NONPROFIT AGENCY FOR PUBLIC SCHOOL 05 STAFF AND FOR STUDENTS WHO ARE IN GRADES KINDERGARTEN 06 THROUGH 12 IN THE STATE; 07 (6) FOR EDUCATION, RESEARCH, REHABILITATION, AND 08 FACILITIES BY AN INSTITUTION THAT IS LOCATED IN THE STATE AND 09 THAT QUALIFIES AS A COASTAL ECOSYSTEM LEARNING CENTER 10 UNDER THE COASTAL AMERICA PARTNERSHIP ESTABLISHED BY THE 11 FEDERAL GOVERNMENT; AND 12 (7) FOR DIRECT INSTRUCTION OR EDUCATIONAL SUPPORT 13 PURPOSES BY A PUBLIC OR PRIVATE NONPROFIT ELEMENTARY OR 14 SECONDARY SCHOOL, INCLUDING A RELIGIOUS SCHOOL, IN THE 15 STATE]. 16 * Sec. 3. AS 21.96.070(b) is repealed and reenacted to read: 17 (b) The amount of the credit is an amount equal to 70 percent of the 18 contributions made under this section. 19 * Sec. 4. AS 21.96.070(d) is amended to read: 20 (d) A contribution claimed as a credit under this section may not 21 (1) be the basis for a credit claimed under more than one provision of 22 this title; and 23 (2) when combined with contributions that are the basis for credits 24 taken during the taxpayer's tax year under AS 21.96.075 or AS 43.98.040 [, 25 AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, AS 43.75.018, OR 26 AS 43.77.045], result in the total amount of credits exceeding $25,000,000 27 [$5,000,000]; if the taxpayer is a member of an affiliated group, then the total amount 28 of credits may not exceed $25,000,000 [$5,000,000] for the affiliated group; in this 29 paragraph, "affiliated group" has the meaning given in AS 43.20.145. 30 * Sec. 5. AS 21.96.070(d), as amended by sec. 4 of this Act, is amended to read: 31 (d) A contribution claimed as a credit under this section may not
01 (1) be the basis for a credit claimed under more than one provision of 02 this title; and 03 (2) when combined with contributions that are the basis for credits 04 taken during the taxpayer's tax year under AS 21.96.075 or AS 43.98.040, result in the 05 total amount of credits exceeding $150,000 [$25,000,000; IF THE TAXPAYER IS A 06 MEMBER OF AN AFFILIATED GROUP, THEN THE TOTAL AMOUNT OF 07 CREDITS MAY NOT EXCEED $25,000,000 FOR THE AFFILIATED GROUP; IN 08 THIS PARAGRAPH, "AFFILIATED GROUP" HAS THE MEANING GIVEN IN 09 AS 43.20.145]. 10 * Sec. 6. AS 21.96.070(f)(2) is amended to read: 11 (2) "vocational education" has the meaning given in AS 43.98.040 12 [AS 43.20.014]. 13 * Sec. 7. AS 21.96.075(c) is amended to read: 14 (c) A contribution claimed by a taxpayer as a credit under this section may not 15 (1) be the basis for a credit claimed under more than one provision of 16 this title; 17 (2) when combined with contributions that are the basis for credits 18 taken during the taxpayer's tax year under AS 21.96.070 and AS 43.98.040 [, 19 AS 43.20.014, AS 43.55.019, AS 43.56.018, AS 43.65.018, AS 43.75.018, OR 20 AS 43.77.045], result in the total amount of credits exceeding $25,000,000 21 [$5,000,000]; if the taxpayer is a member of an affiliated group, then the total amount 22 of credits may not exceed $25,000,000 [$5,000,000] for the affiliated group; in this 23 paragraph, "affiliated group" has the meaning given in AS 43.20.145; or 24 (3) be claimed as a credit unless the contribution qualifies for the credit 25 under (d) of this section. 26 * Sec. 8. AS 21.96.075(c), as amended by sec. 7 of this Act, is amended to read: 27 (c) A contribution claimed by a taxpayer as a credit under this section may not 28 (1) be the basis for a credit claimed under more than one provision of 29 this title; 30 (2) when combined with contributions that are the basis for credits 31 taken during the taxpayer's tax year under AS 21.96.070 and AS 43.98.040, result in
01 the total amount of credits exceeding $150,000 [$25,000,000; IF THE TAXPAYER IS 02 A MEMBER OF AN AFFILIATED GROUP, THEN THE TOTAL AMOUNT OF 03 CREDITS MAY NOT EXCEED $25,000,000 FOR THE AFFILIATED GROUP; IN 04 THIS PARAGRAPH, "AFFILIATED GROUP" HAS THE MEANING GIVEN IN 05 AS 43.20.145]; or 06 (3) be claimed as a credit unless the contribution qualifies for the credit 07 under (d) of this section. 08 * Sec. 9. AS 43.05.010 is amended to read: 09 Sec. 43.05.010. Duties of commissioner. The commissioner of revenue shall 10 (1) exercise general supervision and direct the activities of the 11 Department of Revenue; 12 (2) supervise the fiscal affairs and responsibilities of the department; 13 (3) prescribe uniform rules for investigations and hearings; 14 (4) keep a record of all departmental proceedings, record and file all 15 bonds, and assume custody of returns, reports, papers, and documents of the 16 department; 17 (5) adopt a seal and affix it to each order, process, or certificate issued 18 by the commissioner; 19 (6) keep a record of each order, process, and certificate issued by the 20 commissioner, and keep the record open to public inspection at all reasonable times; 21 (7) hold hearings and investigations necessary for the administration of 22 state tax and revenue laws; 23 (8) except as provided in AS 43.05.405 - 43.05.499 and in 24 AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the 25 Department of Revenue and enter orders on the appeals that are final unless reversed 26 or modified by the courts; 27 (9) issue subpoenas to require the attendance of witnesses and the 28 production of necessary books, papers, documents, correspondence, and other things; 29 (10) order the taking of depositions before a person competent to 30 administer oaths; 31 (11) administer oaths and take acknowledgments;
01 (12) request the attorney general for rulings on the interpretation of the 02 tax and revenue laws administered by the department; 03 (13) call upon the attorney general to institute actions for recovery of 04 unpaid taxes, fees, excises, additions to tax, penalties, and interest; 05 (14) issue warrants for the collection of unpaid tax penalties and 06 interest and take all steps necessary and proper to enforce full and complete 07 compliance with the tax, license, excise, and other revenue laws of the state; 08 (15) report to the legislature before February 15 of each year the total 09 amount of contributions reported and the total amount of credit claimed during the 10 previous calendar year under AS 43.98.040 [AS 43.20.014, AS 43.55.019, 11 AS 43.56.018, AS 43.65.018, AS 43.75.018, AND AS 43.77.045]. 12 * Sec. 10. AS 43.75.130(g) is amended to read: 13 (g) In this section, "tax revenue collected" includes the amount credited under 14 AS 43.98.040 against taxes under this chapter [AS 43.75.018]. 15 * Sec. 11. AS 43.77.060(e), as amended by sec. 21, ch. 51, SLA 2012, is amended to read: 16 (e) For purposes of this section, tax revenue collected under AS 43.77.010 17 from a person entitled to a credit under AS 43.77.035, [43.77.045, OR] AS 43.98.030, 18 or 43.98.040 shall be calculated as if the person's tax had been collected without 19 applying the credits. 20 * Sec. 12. AS 43.98 is amended by adding a new section to read: 21 Sec. 43.98.040. Education tax credit. (a) A taxpayer is allowed a credit 22 against the tax due under this title for cash contributions accepted for 23 (1) direct instruction, research, and educational support purposes, 24 including library and museum acquisitions, and contributions to endowment, by an 25 Alaska university foundation or by a nonprofit, public or private, Alaska two-year or 26 four-year college accredited by a regional accreditation association; 27 (2) secondary school level vocational education courses, programs, and 28 facilities by a school district in the state; 29 (3) vocational education courses, programs, and facilities by a state- 30 operated vocational technical education and training school; 31 (4) a facility or an annual intercollegiate sports tournament by a
01 nonprofit, public or private, Alaska two-year or four-year college accredited by a 02 regional accreditation association; 03 (5) Alaska Native cultural or heritage programs and educational 04 support, including mentoring and tutoring, provided by a nonprofit agency for public 05 school staff and for students who are in grades kindergarten through 12 in the state; 06 (6) education, research, rehabilitation, and facilities by an institution 07 that is located in the state and that qualifies as a coastal ecosystem learning center 08 under the Coastal America Partnership established by the federal government; 09 (7) the Alaska higher education investment fund under AS 37.14.750; 10 or 11 (8) direct instruction or educational support purposes by a public or 12 private nonprofit elementary or secondary school, including a religious school, in the 13 state. 14 (b) The amount of the credit is an amount equal to 70 percent of contributions 15 under this section. 16 (c) Each public college and university shall include in its annual operating 17 budget request contributions received and how the contributions were used. 18 (d) A contribution claimed as a credit under this section may not 19 (1) be the basis for a credit claimed under more than one provision of 20 this title; and 21 (2) when combined with contributions that are the basis for credits 22 taken during the taxpayer's tax year under AS 21.96.070 and 21.96.075, result in the 23 total amount of credits exceeding $25,000,000; if the taxpayer is a member of an 24 affiliated group, then the total amount of credits may not exceed $25,000,000 for the 25 affiliated group; in this paragraph, "affiliated group" has the meaning given in 26 AS 43.20.073. 27 (e) The credit under this section may not reduce a person's tax liability under 28 this title, AS 21.96.070, and 21.96.075 to below zero for any tax year. An unused 29 credit or portion of a credit not used under this section for a tax year may not be sold, 30 traded, transferred, or applied in a subsequent tax year. 31 (f) In this section,
01 (1) "school district" means a borough school district, a city school 02 district, a regional educational attendance area, or a state boarding school; 03 (2) "vocational education" means organized educational activities that 04 offer a sequence of courses that provides individuals with the academic and technical 05 knowledge and skills the individuals need to prepare for further education and for 06 careers other than careers requiring a baccalaureate, master's, or doctoral degree. 07 * Sec. 13. AS 43.98.040(a), added by sec. 12 of this Act, is amended to read: 08 (a) A taxpayer is allowed a credit against the tax due under this title for cash 09 contributions accepted for 10 (1) direct instruction, research, and educational support purposes, 11 including library and museum acquisitions, and contributions to endowment, by an 12 Alaska university foundation or by a nonprofit, public or private, Alaska two-year or 13 four-year college accredited by a regional accreditation association; 14 (2) secondary school level vocational education courses and [,] 15 programs [, AND FACILITIES] by a school district in the state; 16 (3) [VOCATIONAL EDUCATION COURSES, PROGRAMS, AND 17 FACILITIES BY] a state-operated vocational technical education and training school; 18 (4) [A FACILITY OR AN ANNUAL INTERCOLLEGIATE SPORTS 19 TOURNAMENT BY A NONPROFIT, PUBLIC OR PRIVATE, ALASKA TWO- 20 YEAR OR FOUR-YEAR COLLEGE ACCREDITED BY A REGIONAL 21 ACCREDITATION ASSOCIATION; 22 (5) ALASKA NATIVE CULTURAL OR HERITAGE PROGRAMS 23 AND EDUCATIONAL SUPPORT, INCLUDING MENTORING AND TUTORING, 24 PROVIDED BY A NONPROFIT AGENCY FOR PUBLIC SCHOOL STAFF AND 25 FOR STUDENTS WHO ARE IN GRADES KINDERGARTEN THROUGH 12 IN 26 THE STATE; 27 (6) EDUCATION, RESEARCH, REHABILITATION, AND 28 FACILITIES BY AN INSTITUTION THAT IS LOCATED IN THE STATE AND 29 THAT QUALIFIES AS A COASTAL ECOSYSTEM LEARNING CENTER 30 UNDER THE COASTAL AMERICA PARTNERSHIP ESTABLISHED BY THE 31 FEDERAL GOVERNMENT;
01 (7)] the Alaska higher education investment fund under AS 37.14.750 02 [; OR 03 (8) DIRECT INSTRUCTION OR EDUCATIONAL SUPPORT 04 PURPOSES BY A PUBLIC OR PRIVATE NONPROFIT ELEMENTARY OR 05 SECONDARY SCHOOL, INCLUDING A RELIGIOUS SCHOOL, IN THE 06 STATE]. 07 * Sec. 14. AS 43.98.040(b) is repealed and reenacted to read: 08 (b) The amount of the credit is 09 (1) 50 percent of contributions of not more than $100,000; and 10 (2) 100 percent of the next $100,000 of contributions. 11 * Sec. 15. AS 43.98.040(d) is repealed and reenacted to read: 12 (d) A contribution claimed as a credit under this section may not 13 (1) be the basis for a credit claimed under more than one provision of 14 this title; 15 (2) also be allowed as a deduction under 26 U.S.C. 170 against the 16 taxes imposed by AS 43.20; and 17 (3) when combined with contributions that are the basis for credits 18 taken during the taxpayer's tax year under AS 21.96.070 and 21.96.075 and this 19 section, result in the total amount of credits exceeding $150,000. 20 * Sec. 16. AS 43.20.014; AS 43.55.019; AS 43.56.018; AS 43.65.018; AS 43.75.018; and 21 AS 43.77.045 are repealed. 22 * Sec. 17. AS 21.06.110(9); AS 21.96.070(e), 21.96.075(f); AS 43.05.010(15); and 23 AS 43.98.040(e) are repealed. 24 * Sec. 18. Sections 3, 5, 7, 10, 14, 16, 18, 21, 23, 25, 28, 30, 32, 35, 37, 39, 42, 44, 46, 49, 25 51, 53, 55, and 57, ch. 92, SLA 2010; secs. 14 and 15, ch. 7, FSSLA 2011; and secs. 15 - 23 26 and 32, ch. 74 SLA 2012, are repealed. 27 * Sec. 19. Sections 2, 3, 5, 8, 13, 14, 15, and 17 of this Act take effect January 1, 2021. 28 * Sec. 20. Except as provided in sec. 19 of this Act, this Act takes effect July 1, 2013.