HB 130: "An Act relating to exclusions from income, credits, and deductions against the Alaska net income tax; establishing an income tax on oil or gas business entities; and providing for an effective date."
00 HOUSE BILL NO. 130 01 "An Act relating to exclusions from income, credits, and deductions against the Alaska 02 net income tax; establishing an income tax on oil or gas business entities; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.20.011(e) is amended to read: 06 (e) There is imposed for each taxable year on [UPON] the entire taxable 07 income of every corporation or oil or gas business entity derived from sources within 08 the state a tax computed as follows: 09 If the taxable income is: Then the tax is: 10 Less than $25,000 zero 11 $25,000 but less than $49,000 2 percent of the taxable income over 12 $25,000 13 $49,000 but less than $74,000 $480 plus 3 percent of the taxable 14 income over $49,000
01 $74,000 but less than $99,000 $1,230 plus 4 percent of the taxable 02 income over $74,000 03 $99,000 but less than $124,000 $2,230 plus 5 percent of the taxable 04 income over $99,000 05 $124,000 but less than $148,000 $3,480 plus 6 percent of the taxable 06 income over $124,000 07 $148,000 but less than $173,000 $4,920 plus 7 percent of the taxable 08 income over $148,000 09 $173,000 but less than $198,000 $6,670 plus 8 percent of the taxable 10 income over $173,000 11 $198,000 but less than $222,000 $8,670 plus 9 percent of the taxable 12 income over $198,000 13 $222,000 or more $10,830 plus 9.4 percent of the 14 taxable income over $222,000. 15 * Sec. 2. AS 43.20.011 is amended by adding a new subsection to read: 16 (g) In this section, "oil or gas business entity" means a person engaged in the 17 production of oil or gas from a lease or property in this state or engaged in the 18 transportation of oil or gas by pipeline in this state. 19 * Sec. 3. AS 43.20.021(d) is amended to read: 20 (d) Where a credit allowed under the Internal Revenue Code is also allowed in 21 computing Alaska income tax, it is limited to 18 percent of the portion of the federal 22 tax credit that was generated by business expenses incurred through activities 23 conducted in the state [FOR CORPORATIONS OF THE AMOUNT OF CREDIT 24 DETERMINED FOR FEDERAL INCOME TAX PURPOSES WHICH IS 25 ATTRIBUTABLE TO ALASKA]. This limitation does not apply to a special 26 industrial incentive tax credit under AS 43.20.042. 27 * Sec. 4. AS 43.20.145(c) is amended to read: 28 (c) In (b)(1) [AND (3)] of this section, a payment is considered to be received 29 from a corporation that is part of the unitary business if the payment is received 30 (1) by a member of an affiliated group included in a water's edge 31 combined report filed under this section; and
01 (2) from a corporation in which the recipient owns 50 percent or more 02 of the stock of the corporation. 03 * Sec. 5. AS 43.20.145(d) is amended to read: 04 (d) Dividends [AND ROYALTIES] taxable to a corporation using the water's 05 edge combined reporting method are in lieu of an expense attribution for income 06 excluded under (b) of this section. 07 * Sec. 6. AS 43.20.021(c), 43.20.144(g), 43.20.145(b)(3), and 43.20.145(g) are repealed. 08 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 CARES ACT; NET OPERATING LOSS CARRYBACK. Notwithstanding 11 AS 43.20.021(a), changes made to 26 U.S.C. 172 by sec. 2302, P. L. 116-136 (CARES Act), 12 amending 26 U.S.C. 172(b)(1), providing for a carryback of net operating losses arising in a 13 taxable year beginning after December 31, 2017, and before January 1, 2021, do not apply to 14 a state taxpayer filing net income taxes under AS 43.20 for a tax year beginning after 15 December 31, 2017, and before January 1, 2021. Under AS 43.20.021(a), 26 U.S.C. 172 is 16 incorporated by reference as 26 U.S.C. 172 read before the enactment of P. L. 116-136. 17 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. (a) AS 43.20.011(e), as amended by sec. 1 of this Act, applies to a 20 corporation or person engaged in the production of oil or gas from a lease or property in the 21 state or engaged in the transportation of oil or gas by pipeline in the state that is filing a return 22 for a tax year beginning on or after the effective date of sec. 1 of this Act. 23 (b) AS 43.20.021(d), as amended by sec. 3 of this Act, AS 43.20.145(c), as amended 24 by sec. 4 of this Act, AS 43.20.145(d), as amended by sec. 5 of this Act, and the repeals of 25 AS 43.20.021(c), 43.20.144(g), and 43.20.145(b)(3) and (g) by sec. 6 of this Act apply to a 26 taxpayer that is filing a return for a tax year beginning on or after the effective date of secs. 3 - 27 6 of this Act. 28 (c) Section 7 of this Act applies to a taxpayer that is filing a return for a tax year 29 beginning after December 31, 2017. 30 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 RETROACTIVITY. Section 7 of this Act is retroactive to January 1, 2020. 02 * Sec. 10. Sections 1 - 6 of this Act take effect January 1, 2022. 03 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect immediately under 04 AS 01.10.070(c).