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SCS CSHB 89(HSS): "An Act relating to education tax credits for certain payments and contributions for child care and child care facilities; relating to the insurance tax education credit, the income tax education credit, the oil or gas producer education credit, the property tax education credit, the mining business education credit, the fisheries business education credit, and the fisheries resource landing tax education credit; renaming the day care assistance program the child care assistance program; relating to the child care assistance program and the child care grant program; providing for an effective date by amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an effective date." 

00                SENATE CS FOR CS FOR HOUSE BILL NO. 89(HSS)                                                             
01 "An Act relating to education tax credits for certain payments and contributions for                                    
02 child care and child care facilities; relating to the insurance tax education credit, the                               
03 income tax education credit, the oil or gas producer education credit, the property tax                                 
04 education credit, the mining business education credit, the fisheries business education                                
05 credit, and the fisheries resource landing tax education credit; renaming the day care                                  
06 assistance program the child care assistance program; relating to the child care                                        
07 assistance program and the child care grant program; providing for an effective date by                                 
08 amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an                               
09 effective date."                                                                                                        
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
11    * Section 1. AS 21.96.070(a) is amended to read:                                                                   
12            (a)  A taxpayer is allowed a credit against the tax due under AS 21.09.210 or                                



01       AS 21.66.110 for [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED]                                                    
02 (1)  contributions of cash or equipment accepted for direct                                                         
03 instruction, research, and educational support purposes, including library and museum                                   
04 acquisitions, and contributions to endowment, by an Alaska university foundation or                                     
05 by a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                 
06       national or regional accreditation association;                                                                   
07                 (2)  contributions of cash or equipment accepted for secondary                                      
08       school level vocational education courses, programs, and facilities by a school district                          
09       in the state;                                                                                                     
10 (3)  contributions of cash or equipment accepted for vocational                                                     
11 education courses, programs, and facilities by a state-operated vocational technical                                    
12       education and training school;                                                                                    
13 (4)  contributions of cash or equipment accepted for a facility by a                                                
14 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      
15       national or regional accreditation association;                                                                   
16 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
17 cultural or heritage programs and educational support, including mentoring and                                          
18 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
19       are in grades kindergarten through 12 in the state; [AND]                                                         
20 (6)  contributions of cash or equipment accepted for education,                                                     
21 research, rehabilitation, and facilities by an institution that is located in the state and                             
22 that qualifies as a coastal ecosystem learning center under the Coastal America                                         
23       Partnership established by the federal government;                                                            
24 (7)  expenditures made to operate a child care facility in the state                                                
25       for the children of the taxpayer's employees;                                                                 
26 (8)  contributions of cash or equipment accepted by a child care                                                    
27 facility in the state operated by a nonprofit corporation and attended by one or                                    
28       more children of the taxpayer's employees; and                                                                
29 (9)  a payment to an employee of the taxpayer made by the                                                           
30 taxpayer for the purpose of offsetting the employee's child care costs incurred in                                  
31       the state.                                                                                                    



01    * Sec. 2. AS 21.96.070(d) is amended to read:                                                                      
02            (d)  A contribution claimed as a credit under this section may not                                           
03                 (1)  be the basis for a credit claimed under another provision of this                                  
04       title; and                                                                                                        
05 (2)  when combined with contributions that are the basis for credits                                                    
06 taken during the taxpayer's tax year under AS 43.20.014, AS 43.55.019,                                                  
07 AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total                                          
08 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of                                 
09 an affiliated group, then the total amount of credits may not exceed $3,000,000                                     
10 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    
11       meaning given in AS 43.20.145.                                                                                    
12    * Sec. 3. AS 21.96.070 is amended by adding a new subsection to read:                                              
13 (g)  Beginning January 1, 2030, and every five years thereafter, the Department                                         
14 of Labor and Workforce Development shall adjust the dollar limit on credits under (d)                                   
15 of this section for inflation, using 100 percent of the change over the preceding five                                  
16 calendar years in the Consumer Price Index for all urban consumers for urban Alaska,                                    
17       compiled by the Bureau of Labor Statistics, United States Department of Labor.                                    
18    * Sec. 4. AS 43.20.014(a) is amended to read:                                                                      
19 (a)  A taxpayer is allowed a credit against the tax due under this chapter for                                          
20       [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED FOR]                                                                 
21 (1)  contributions of cash or equipment accepted for direct                                                         
22 instruction, research, and educational support purposes, including library and museum                                   
23 acquisitions, and contributions to endowment, by an Alaska university foundation, by                                    
24 a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                    
25 national or regional accreditation association, or by a public or private nonprofit                                     
26       elementary or secondary school in the state;                                                                      
27 (2)  contributions of cash or equipment accepted for secondary                                                      
28 school level vocational education courses, programs, and facilities by a school district                                
29       in the state;                                                                                                     
30 (3)  contributions of cash or equipment accepted for vocational                                                     
31 education courses, programs, equipment, and facilities by a state-operated vocational                                   



01 technical education and training school, a nonprofit regional training center recognized                                
02 by the Department of Labor and Workforce Development, and an apprenticeship                                             
03 program in the state that is registered with the United States Department of Labor                                      
04       under 29 U.S.C. 50 - 50b (National Apprenticeship Act);                                                           
05 (4)  contributions of cash or equipment accepted for a facility by a                                                
06 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      
07 national or regional accreditation association or by a public or private nonprofit                                      
08       elementary or secondary school in the state;                                                                      
09 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
10 cultural or heritage programs and educational support, including mentoring and                                          
11 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
12       are in grades kindergarten through 12 in the state;                                                               
13 (6)  contributions of cash or equipment accepted for education,                                                     
14 research, rehabilitation, and facilities by an institution that is located in the state and                             
15 that qualifies as a coastal ecosystem learning center under the Coastal America                                         
16       Partnership established by the federal government;                                                                
17 (7)  contributions of cash or equipment accepted for the Alaska                                                     
18       higher education investment fund under AS 37.14.750;                                                              
19 (8)  contributions of cash or equipment accepted for funding a                                                      
20 scholarship awarded by a nonprofit organization to a dual-credit student to defray the                                  
21       cost of a dual-credit course, including the cost of                                                               
22                      (A)  tuition and textbooks;                                                                        
23                      (B)  registration, course, and programmatic student fees;                                          
24 (C)  on-campus room and board at the postsecondary institution                                                          
25            in the state that provides the dual-credit course;                                                           
26 (D)  transportation costs to and from a residential school                                                              
27 approved by the Department of Education and Early Development under                                                     
28 AS 14.16.200 or the postsecondary school in the state that provides the dual-                                           
29            credit course; and                                                                                           
30                      (E)  other related educational and programmatic costs;                                             
31 (9)  contributions of cash or equipment accepted for constructing,                                                  



01 operating, or maintaining a residential housing facility by a residential school in the                                 
02 state approved by the Department of Education and Early Development under                                               
03       AS 14.16.200;                                                                                                     
04 (10)  contributions of cash or equipment accepted for childhood                                                     
05 early learning and development programs and educational support to childhood early                                      
06 learning and development programs provided by a nonprofit corporation organized                                         
07 under AS 10.20, a tribal entity, or a school district in the state, by the Department of                                
08       Education and Early Development, or through a state grant;                                                        
09 (11)  contributions of cash or equipment accepted for science,                                                      
10 technology, engineering, and math programs provided by a nonprofit agency or a                                          
11 school district for school staff and for students in grades kindergarten through 12 in                                  
12       the state; [AND]                                                                                                  
13 (12)  contributions of cash or equipment accepted for the operation                                                 
14 of a nonprofit organization dedicated to providing educational opportunities that                                       
15 promote the legacy of public service contributions to the state and perpetuate ongoing                                  
16 educational programs that foster public service leadership for future generations of                                    
17       residents of the state;                                                                                       
18 (13)  expenditures made to operate a child care facility in the state                                               
19       for the children of the taxpayer's employees;                                                                 
20 (14)  contributions of cash or equipment accepted by a child care                                                   
21 facility in the state operated by a nonprofit corporation and attended by one or                                    
22       more children of the taxpayer's employees; and                                                                
23 (15)  a payment to an employee of the taxpayer made by the                                                          
24 taxpayer for the purpose of offsetting the employee's child care costs incurred in                                  
25       the state.                                                                                                    
26    * Sec. 5. AS 43.20.014(d) is amended to read:                                                                      
27            (d)  A contribution claimed as a credit under this section may not                                           
28 (1)  be the basis for a credit claimed under another provision of this                                                  
29       title;                                                                                                            
30 (2)  also be allowed as a deduction under 26 U.S.C. 170 against the tax                                                 
31       imposed by this chapter; and                                                                                      



01 (3)  when combined with contributions that are the basis for credits                                                    
02 taken during the taxpayer's tax year under AS 21.96.070, AS 43.55.019,                                                  
03 AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total                                          
04 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of                                 
05 an affiliated group, then the total amount of credits may not exceed $3,000,000                                     
06 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    
07       meaning given in AS 43.20.145.                                                                                    
08    * Sec. 6. AS 43.20.014 is amended by adding a new subsection to read:                                              
09 (h)  Beginning January 1, 2030, and every five years thereafter, the Department                                         
10 of Labor and Workforce Development shall adjust the dollar limit on credits under (d)                                   
11 of this section for inflation, using 100 percent of the change over the preceding five                                  
12 calendar years in the Consumer Price Index for all urban consumers for urban Alaska,                                    
13       compiled by the Bureau of Labor Statistics, United States Department of Labor.                                  
14    * Sec. 7. AS 43.55.019(a) is amended to read:                                                                      
15 (a)  A producer of oil or gas is allowed a credit against the tax levied by                                             
16 AS 43.55.011(e) for [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED                                                        
17       FOR]                                                                                                              
18 (1)  contributions of cash or equipment accepted for direct                                                         
19 instruction, research, and educational support purposes, including library and museum                                   
20 acquisitions, and contributions to endowment, by an Alaska university foundation or                                     
21 by a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                 
22       national or regional accreditation association;                                                                   
23 (2)  contributions of cash or equipment accepted for secondary                                                      
24 school level vocational education courses, programs, and facilities by a school district                                
25       in the state;                                                                                                     
26 (3)  contributions of cash or equipment accepted for vocational                                                     
27 education courses, programs, equipment, and facilities by a state-operated vocational                                   
28 technical education and training school, a nonprofit regional training center recognized                                
29 by the Department of Labor and Workforce Development, and an apprenticeship                                             
30 program in the state that is registered with the United States Department of Labor                                      
31       under 29 U.S.C. 50 - 50b (National Apprenticeship Act);                                                           



01 (4)  contributions of cash or equipment accepted for a facility by a                                                
02 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      
03       national or regional accreditation association;                                                                   
04 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
05 cultural or heritage programs and educational support, including mentoring and                                          
06 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
07       are in grades kindergarten through 12 in the state;                                                               
08 (6)  contributions of cash or equipment accepted for education,                                                     
09 research, rehabilitation, and facilities by an institution that is located in the state and                             
10 that qualifies as a coastal ecosystem learning center under the Coastal America                                         
11       Partnership established by the federal government; [AND]                                                          
12 (7)  contributions of cash or equipment accepted for the Alaska                                                     
13       higher education investment fund under AS 37.14.750;                                                          
14 (8)  expenditures made to operate a child care facility in the state                                                
15       for the children of the producer's employees;                                                                 
16 (9)  contributions of cash or equipment accepted by a child care                                                    
17 facility in the state operated by a nonprofit corporation and attended by one or                                    
18       more children of the producer's employees; and                                                                
19 (10)  a payment to an employee of the producer made by the                                                          
20 producer for the purpose of offsetting the employee's child care costs incurred in                                  
21       the state.                                                                                                    
22    * Sec. 8. AS 43.55.019(d) is amended to read:                                                                      
23            (d)  A contribution claimed as a credit under this section may not                                           
24 (1)  be the basis for a credit claimed under another provision of this                                                  
25       title; and                                                                                                        
26 (2)  when combined with contributions that are the basis for credits                                                    
27 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014,                                                  
28 AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total                                          
29 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of                                 
30 an affiliated group, then the total amount of credits may not exceed $3,000,000                                     
31 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    



01       meaning given in AS 43.20.145.                                                                                    
02    * Sec. 9. AS 43.55.019 is amended by adding a new subsection to read:                                              
03 (i)  Beginning January 1, 2030, and every five years thereafter, the Department                                         
04 of Labor and Workforce Development shall adjust the limit under (d) of this section                                     
05 for inflation, using 100 percent of the change over the preceding five calendar years in                                
06 the Consumer Price Index for all urban consumers for urban Alaska, compiled by the                                      
07       Bureau of Labor Statistics, United States Department of Labor.                                                    
08    * Sec. 10. AS 43.56.018(a) is amended to read:                                                                     
09            (a)  The owner of property taxable under this chapter is allowed a credit                                    
10 against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR                                                    
11       EQUIPMENT ACCEPTED FOR]                                                                                           
12 (1)  contributions of cash or equipment accepted for direct                                                         
13 instruction, research, and educational support purposes, including library and museum                                   
14 acquisitions, and contributions to endowment, by an Alaska university foundation or                                     
15 by a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                 
16       national or regional accreditation association;                                                                   
17 (2)  contributions of cash or equipment accepted for secondary                                                      
18 school level vocational education courses, programs, and facilities by a school district                                
19       in the state;                                                                                                     
20 (3)  contributions of cash or equipment accepted for vocational                                                     
21 education courses, programs, and facilities by a state-operated vocational technical                                    
22       education and training school;                                                                                    
23 (4)  contributions of cash or equipment accepted for a facility by a                                                
24 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      
25       national or regional accreditation association;                                                                   
26 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
27 cultural or heritage programs and educational support, including mentoring and                                          
28 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
29       are in grades kindergarten through 12 in the state;                                                               
30 (6)  contributions of cash or equipment accepted for education,                                                     
31 research, rehabilitation, and facilities by an institution that is located in the state and                             



01       that qualifies as a coastal ecosystem learning center under the Coastal America                                   
02       Partnership established by the federal government; [AND]                                                          
03                 (7)  contributions of cash or equipment accepted for the Alaska                                     
04       higher education investment fund under AS 37.14.750;                                                          
05                 (8)  expenditures made to operate a child care facility in the state                                
06       for the children of the property owner's employees;                                                           
07                 (9)  contributions of cash or equipment accepted by a child care                                    
08       facility in the state operated by a nonprofit corporation and attended by one or                              
09       more children of the property owner's employees; and                                                          
10 (10)  a payment to an employee of the property owner made by the                                                    
11 owner for the purpose of offsetting the employee's child care costs incurred in the                                 
12       state.                                                                                                        
13    * Sec. 11. AS 43.56.018(d) is amended to read:                                                                     
14            (d)  A contribution claimed as a credit under this section may not                                           
15 (1)  be the basis for a credit claimed under another provision of this                                                  
16       title; and                                                                                                        
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, AS 43.20.014,                                                  
19 AS 43.55.019, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total                                          
20 amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of                                 
21 an affiliated group, then the total amount of credits may not exceed $3,000,000                                     
22 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    
23       meaning given in AS 43.20.145.                                                                                    
24    * Sec. 12. AS 43.56.018 is amended by adding a new subsection to read:                                             
25 (h)  Beginning January 1, 2030, and every five years thereafter, the department                                         
26 shall adjust the dollar limit on credits under (d) of this section for inflation, using 100                             
27 percent of the change over the preceding five calendar years in the Consumer Price                                      
28 Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor                                         
29       Statistics, United States Department of Labor.                                                                    
30    * Sec. 13. AS 43.65.018(a) is amended to read:                                                                     
31 (a)  A person engaged in the business of mining in the state is allowed a credit                                        



01 against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR                                                    
02       EQUIPMENT ACCEPTED FOR]                                                                                           
03 (1)  contributions of cash or equipment accepted for direct                                                         
04 instruction, research, and educational support purposes, including library and museum                                   
05 acquisitions, and contributions to endowment, by an Alaska university foundation, by                                    
06 a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                    
07 national or regional accreditation association, or by a public or private nonprofit                                     
08       elementary or secondary school in the state;                                                                      
09 (2)  contributions of cash or equipment accepted for secondary                                                      
10 school level vocational education courses, programs, and facilities by a school district                                
11       in the state;                                                                                                     
12 (3)  contributions of cash or equipment accepted for vocational                                                     
13 education courses, programs, and facilities by a state- operated vocational technical                                   
14       education and training school;                                                                                    
15 (4)  contributions of cash or equipment accepted for a facility by a                                                
16 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      
17 national or regional accreditation association or by a public or private nonprofit                                      
18       elementary or secondary school in the state;                                                                      
19 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
20 cultural or heritage programs and educational support, including mentoring and                                          
21 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
22       are in grades kindergarten through 12 in the state;                                                               
23 (6)  contributions of cash or equipment accepted for education,                                                     
24 research, rehabilitation, and facilities by an institution that is located in the state and                             
25 that qualifies as a coastal ecosystem learning center under the Coastal America                                         
26       Partnership established by the federal government;                                                                
27 (7)  contributions of cash or equipment accepted for the Alaska                                                     
28       higher education investment fund under AS 37.14.750;                                                              
29 (8)  contributions of cash or equipment accepted for funding a                                                      
30 scholarship awarded by a nonprofit organization to a dual-credit student to defray the                                  
31       cost of a dual-credit course, including the cost of                                                               



01                      (A)  tuition and textbooks;                                                                        
02                      (B)  registration, course, and programmatic student fees;                                          
03                      (C)  on-campus room and board at the postsecondary institution                                     
04            in the state that provides the dual-credit course;                                                           
05 (D)  transportation costs to and from a residential school                                                              
06 approved by the Department of Education and Early Development under                                                     
07 AS 14.16.200 or the postsecondary school in the state that provides the dual-                                           
08            credit course; and                                                                                           
09                      (E)  other related educational and programmatic costs;                                             
10 (9)  contributions of cash or equipment accepted for constructing,                                                  
11 operating, or maintaining a residential housing facility by a residential school                                        
12 approved by the Department of Education and Early Development under                                                     
13       AS 14.16.200;                                                                                                     
14 (10)  contributions of cash or equipment accepted for childhood                                                     
15 early learning and development programs and educational support to childhood early                                      
16 learning and development programs provided by a nonprofit corporation organized                                         
17 under AS 10.20, a tribal entity, or a school district in the state, by the Department of                                
18       Education and Early Development, or through a state grant;                                                        
19 (11)  contributions of cash or equipment accepted for science,                                                      
20 technology, engineering, and math programs provided by a nonprofit agency or a                                          
21 school district for school staff and for students in grades kindergarten through 12 in                                  
22       the state; [AND]                                                                                                  
23 (12)  contributions of cash or equipment accepted for the operation                                                 
24 of a nonprofit organization dedicated to providing educational opportunities that                                       
25 promote the legacy of public service contributions to the state and perpetuate ongoing                                  
26 educational programs that foster public service leadership for future generations of                                    
27       residents of the state;                                                                                       
28 (13)  expenditures made to operate a child care facility in the state                                               
29       for the children of the person's employees;                                                                   
30 (14)  contributions of cash or equipment accepted by a child care                                                   
31 facility in the state operated by a nonprofit corporation and attended by one or                                    



01       more children of the person's employees; and                                                                  
02                 (15)  a payment to an employee of the person's business made by                                     
03       the person for the purpose of offsetting the employee's child care costs incurred                             
04       in the state.                                                                                                 
05    * Sec. 14. AS 43.65.018(d) is amended to read:                                                                     
06            (d)  A contribution claimed as a credit under this section may not                                           
07                 (1)  be the basis for a credit claimed under another provision of this                                  
08       title; and                                                                                                        
09                 (2)  when combined with contributions that are the basis for credits                                    
10 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014,                                                  
11 AS 43.55.019, AS 43.56.018, AS 43.75.018, or AS 43.77.045, result in the total                                          
12 amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member                                
13 of an affiliated group, then the total amount of credits may not exceed $3,000,000                                  
14 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    
15       meaning given in AS 43.20.145.                                                                                    
16    * Sec. 15. AS 43.65.018 is amended by adding a new subsection to read:                                             
17 (h)  Beginning January 1, 2030, and every five years thereafter, the department                                         
18 shall adjust the dollar limit on credits under (d) of this section for inflation, using 100                             
19 percent of the change over the preceding five calendar years in the Consumer Price                                      
20 Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor                                         
21       Statistics, United States Department of Labor.                                                                    
22    * Sec. 16. AS 43.75.018(a) is amended to read:                                                                     
23 (a)  A person engaged in a fisheries business is allowed a credit against the tax                                       
24 due under this chapter for [CONTRIBUTIONS OF CASH OR EQUIPMENT                                                          
25       ACCEPTED FOR]                                                                                                     
26 (1)  contributions of cash or equipment accepted for direct                                                         
27 instruction, research, and educational support purposes, including library and museum                                   
28 acquisitions, and contributions to endowment, by an Alaska university foundation, by                                    
29 a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                    
30 national or regional accreditation association, or by a public or private nonprofit                                     
31       elementary or secondary school in the state;                                                                      



01 (2)  contributions of cash or equipment accepted for secondary                                                      
02 school level vocational education courses, programs, and facilities by a school district                                
03       in the state;                                                                                                     
04 (3)  contributions of cash or equipment accepted for vocational                                                     
05 education courses, programs, and facilities by a state-operated vocational technical                                    
06       education and training school;                                                                                    
07 (4)  contributions of cash or equipment accepted for a facility by a                                                
08 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      
09 national or regional accreditation association or by a public or private nonprofit                                      
10       elementary or secondary school in the state;                                                                      
11 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
12 cultural or heritage programs and educational support, including mentoring and                                          
13 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
14       are in grades kindergarten through 12 in the state;                                                               
15 (6)  contributions of cash or equipment accepted for education,                                                     
16 research, rehabilitation, and facilities by an institution that is located in the state and                             
17 that qualifies as a coastal ecosystem learning center under the Coastal America                                         
18       Partnership established by the federal government;                                                                
19 (7)  contributions of cash or equipment accepted for the Alaska                                                     
20       higher education investment fund under AS 37.14.750;                                                              
21 (8)  contributions of cash or equipment accepted for funding a                                                      
22 scholarship awarded by a nonprofit organization to a dual-credit student to defray the                                  
23       cost of a dual-credit course, including the cost of                                                               
24                      (A)  tuition and textbooks;                                                                        
25                      (B)  registration, course, and programmatic student fees;                                          
26 (C)  on-campus room and board at the postsecondary institution                                                          
27            in the state that provides the dual-credit course;                                                           
28 (D)  transportation costs to and from a residential school                                                              
29 approved by the Department of Education and Early Development under                                                     
30 AS 14.16.200 or the postsecondary school in the state that provides the dual-                                           
31            credit course; and                                                                                           



01                      (E)  other related educational and programmatic costs;                                             
02 (9)  contributions of cash or equipment accepted for constructing,                                                  
03 operating, or maintaining a residential housing facility by a residential school                                        
04 approved by the Department of Education and Early Development under                                                     
05       AS 14.16.200;                                                                                                     
06 (10)  contributions of cash or equipment accepted for childhood                                                     
07 early learning and development programs and educational support to childhood early                                      
08 learning and development programs provided by a nonprofit corporation organized                                         
09 under AS 10.20, a tribal entity, or a school district in the state, by the Department of                                
10       Education and Early Development, or through a state grant;                                                        
11 (11)  contributions of cash or equipment accepted for science,                                                      
12 technology, engineering, and math programs provided by a nonprofit agency or a                                          
13 school district for school staff and for students in grades kindergarten through 12 in                                  
14       the state; [AND]                                                                                                  
15 (12)  contributions of cash or equipment accepted for the operation                                                 
16 of a nonprofit organization dedicated to providing educational opportunities that                                       
17 promote the legacy of public service contributions to the state and perpetuate ongoing                                  
18 educational programs that foster public service leadership for future generations of                                    
19       residents of the state;                                                                                       
20 (13)  expenditures made to operate a child care facility in the state                                               
21       for the children of the person's employees;                                                                   
22 (14)  contributions of cash or equipment accepted by a child care                                                   
23 facility in the state operated by a nonprofit corporation and attended by one or                                    
24       more children of the person's employees; and                                                                  
25 (15)  a payment to an employee of the person's business made by                                                     
26 the person for the purpose of offsetting the employee's child care costs incurred                                   
27       in the state.                                                                                                 
28    * Sec. 17. AS 43.75.018(d) is amended to read:                                                                     
29            (d)  A contribution claimed as a credit under this section may not                                           
30 (1)  be the basis for a credit claimed under another provision of this                                                  
31       title; and                                                                                                        



01 (2)  when combined with contributions that are the basis for credits                                                    
02 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014,                                                  
03 AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.77.045, result in the total                                          
04 amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member                                
05 of an affiliated group, then the total amount of credits may not exceed $3,000,000                                  
06 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    
07       meaning given in AS 43.20.145.                                                                                    
08    * Sec. 18. AS 43.75.018 is amended by adding a new subsection to read:                                             
09 (h)  Beginning January 1, 2030, and every five years thereafter, the Department                                         
10 of Labor and Workforce Development shall adjust the dollar limit on credits under (d)                                   
11 of this section for inflation, using 100 percent of the change over the preceding five                                  
12 calendar years in the Consumer Price Index for all urban consumers for urban Alaska,                                    
13       compiled by the Bureau of Labor Statistics, United States Department of Labor.                                    
14    * Sec. 19. AS 43.77.045(a) is amended to read:                                                                     
15 (a)  A person engaged in a floating fisheries business is allowed a credit                                              
16 against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR                                                    
17       EQUIPMENT ACCEPTED FOR]                                                                                           
18 (1)  contributions of cash or equipment accepted for direct                                                         
19 instruction, research, and educational support purposes, including library and museum                                   
20 acquisitions, and contributions to endowment, by an Alaska university foundation, by                                    
21 a nonprofit, public or private, Alaska two-year or four-year college accredited by a                                    
22 national or regional accreditation association, or by a public or private nonprofit                                     
23       elementary or secondary school in the state;                                                                      
24 (2)  contributions of cash or equipment accepted for secondary                                                      
25 school level vocational education courses, programs, and facilities by a school district                                
26       in the state;                                                                                                     
27 (3)  contributions of cash or equipment accepted for vocational                                                     
28 education courses, programs, and facilities by a state-operated vocational technical                                    
29       education and training school;                                                                                    
30 (4)  contributions of cash or equipment accepted for a facility by a                                                
31 nonprofit, public or private, Alaska two-year or four-year college accredited by a                                      



01 national or regional accreditation association or by a public or private nonprofit                                      
02       elementary or secondary school in the state;                                                                      
03 (5)  contributions of cash or equipment accepted for Alaska Native                                                  
04 cultural or heritage programs and educational support, including mentoring and                                          
05 tutoring, provided by a nonprofit agency for public school staff and for students who                                   
06       are in grades kindergarten through 12 in the state;                                                               
07 (6)  contributions of cash or equipment accepted for education,                                                     
08 research, rehabilitation, and facilities by an institution that is located in the state and                             
09 that qualifies as a coastal ecosystem learning center under the Coastal America                                         
10       Partnership established by the federal government;                                                                
11 (7)  contributions of cash or equipment accepted for the Alaska                                                     
12       higher education investment fund under AS 37.14.750;                                                              
13 (8)  contributions of cash or equipment accepted for funding a                                                      
14 scholarship awarded by a nonprofit organization to a dual-credit student to defray the                                  
15       cost of a dual-credit course, including the cost of                                                               
16                      (A)  tuition and textbooks;                                                                        
17                      (B)  registration, course, and programmatic student fees;                                          
18 (C)  on-campus room and board at the postsecondary institution                                                          
19            in the state that provides the dual-credit course;                                                           
20 (D)  transportation costs to and from a residential school                                                              
21 approved by the Department of Education and Early Development under                                                     
22 AS 14.16.200 or the postsecondary school in the state that provides the dual-                                           
23            credit course; and                                                                                           
24                      (E)  other related educational and programmatic costs;                                             
25 (9)  contributions of cash or equipment accepted for constructing,                                                  
26 operating, or maintaining a residential housing facility by a residential school                                        
27 approved by the Department of Education and Early Development under                                                     
28       AS 14.16.200;                                                                                                     
29 (10)  contributions of cash or equipment accepted for childhood                                                     
30 early learning and development programs and educational support to childhood early                                      
31 learning and development programs provided by a nonprofit corporation organized                                         



01 under AS 10.20, a tribal entity, or a school district in the state, by the Department of                                
02       Education and Early Development, or through a state grant;                                                        
03 (11)  contributions of cash or equipment accepted for science,                                                      
04 technology, engineering, and math programs provided by a nonprofit agency or a                                          
05 school district for school staff and for students in grades kindergarten through 12 in                                  
06       the state; [AND]                                                                                                  
07 (12)  contributions of cash or equipment accepted for the operation                                                 
08 of a nonprofit organization dedicated to providing educational opportunities that                                       
09 promote the legacy of public service contributions to the state and perpetuate ongoing                                  
10 educational programs that foster public service leadership for future generations of                                    
11       residents of the state;                                                                                       
12 (13)  expenditures made to operate a child care facility in the state                                               
13       for the children of the person's employees;                                                                   
14 (14)  contributions of cash or equipment accepted by a child care                                                   
15 facility in the state operated by a nonprofit corporation and attended by one or                                    
16       more children of the person's employees; and                                                                  
17 (15)  a payment to an employee of the person's business made by                                                     
18 the person for the purpose of offsetting the employee's child care costs incurred                                   
19       in the state.                                                                                                 
20    * Sec. 20. AS 43.77.045(d) is amended to read:                                                                     
21            (d)  A contribution claimed as a credit under this section may not                                           
22 (1)  be the basis for a credit claimed under another provision of this                                                  
23       title; and                                                                                                        
24 (2)  when combined with contributions that are the basis for credits                                                    
25 taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014,                                                  
26 AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.75.018, result in the total                                          
27 amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member                                
28 of an affiliated group, then the total amount of credits may not exceed $3,000,000                                  
29 [$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the                                    
30       meaning given in AS 43.20.145.                                                                                    
31    * Sec. 21. AS 43.77.045 is amended by adding a new subsection to read:                                             



01 (g)  Beginning January 1, 2030, and every five years thereafter, the Department                                         
02 of Labor and Workforce Development shall adjust the dollar limit on credits under (d)                                   
03 of this section for inflation, using 100 percent of the change over the preceding five                                  
04 calendar years in the Consumer Price Index for all urban consumers for urban Alaska,                                    
05       compiled by the Bureau of Labor Statistics, United States Department of Labor.                                    
06    * Sec. 22. AS 47.05.030(a) is amended to read:                                                                     
07 (a)  Except as provided in (b) and (c) of this section and for purposes directly                                        
08 connected with the administration of general assistance, adult public assistance, the                                   
09 child [DAY] care assistance program authorized under AS 47.25.001 - 47.25.095, or                                   
10 the Alaska temporary assistance program, and in accordance with the regulations of                                      
11 the department, a person may not solicit, disclose, receive, make use of, or authorize,                                 
12 knowingly permit, participate in, or acquiesce in the use of, a list of or names of, or                                 
13 information concerning, persons applying for or receiving the assistance directly or                                    
14 indirectly derived from the records, papers, files, or communications of the department                                 
15 or subdivisions or agencies of the department, or acquired in the course of the                                         
16       performance of official duties.                                                                                   
17    * Sec. 23. AS 47.05.085(a) is amended to read:                                                                     
18 (a)  The commissioner or the commissioner's designee at the director level may                                          
19 issue subpoenas to compel the production of books, papers, correspondence,                                              
20 memoranda, and other records considered necessary as evidence in connection with an                                     
21 investigation under or the administration of AS 47.07 (medical assistance), AS 47.08                                    
22 (assistance for catastrophic illnesses and acute or chronic medical conditions),                                        
23 AS 47.25 (child [DAY] care assistance, child care grants, general relief, adult public                              
24       assistance, and food stamps), and AS 47.27 (Alaska temporary assistance program).                                 
25    * Sec. 24. AS 47.25.001(a) is amended to read:                                                                     
26            (a)  The department shall                                                                                    
27 (1)  implement and administer a program to assist in providing child                                                
28 [DAY] care for the children of low and moderate income families according to the                                        
29       requirements of AS 47.25.001 - 47.25.095;                                                                         
30 (2)  establish standards of eligibility for child [DAY] care benefits; the                                      
31 standards must provide that the maximum monthly household income for a                                              



01       family to be eligible for the program is 105 percent of the median monthly                                    
02       household income in the state, adjusted for family size, unless the family is                                 
03       otherwise exempt from income eligibility requirements;                                                        
04                 (3)  contract for the care of children of eligible families;                                            
05                 (4)  establish procedures to periodically review the needs of families                                  
06       receiving child [DAY] care benefits;                                                                          
07                 (5)  provide notification to the local government body of the request for                               
08       a contract with a child [DAY] care facility;                                                                  
09                 (6)  establish an electronic application for assistance and allow an                                    
10 applicant to submit an application in electronic format or in other formats required by                                 
11 state and federal law; the electronic application must inform an applicant that a false                                 
12 statement made on the application will be investigated and is punishable under                                          
13       AS 11.56.210;                                                                                                 
14 (7)  establish a program to partner with private sector entities to                                                 
15       create incentives for employers to develop on-site or near-site child care.                                   
16    * Sec. 25. AS 47.25.011 is amended to read:                                                                        
17 Sec. 47.25.011. Administrative costs of program contractors. To defray                                                
18 administrative expenses, a contractor under AS 47.25.001(b) may only retain $1,000                                      
19 or 12 percent, whichever is greater, of the child [DAY] care assistance program funds                               
20       it receives from the department under the contract.                                                             
21    * Sec. 26. AS 47.25.021 is amended to read:                                                                        
22 Sec. 47.25.021. Conditions of receipt of benefits. Benefits may be paid for                                           
23 the care of children of a low or moderate income family only if a parent or guardian,                                   
24 because of the child [DAY] care, is freed to work or to seek work or to attend school.                              
25 Benefits may not be paid for the care of children of a family where one parent or                                       
26 guardian is not working, actively seeking work, or attending school and is physically                                   
27       and mentally capable of caring for the children.                                                                
28    * Sec. 27. AS 47.25.031 is amended to read:                                                                        
29 Sec. 47.25.031. Eligibility of families for benefits. The department shall                                            
30 determine the eligibility of families for child [DAY] care benefits on the basis of the                             
31       following factors:                                                                                              



01                 (1)  income of the family including salary, alimony, child support,                                     
02       retirement benefits, social security, and any other source of income;                                             
03                 (2)  number of children in the family;                                                                  
04                 (3)  whether there is one parent or guardian solely responsible for the                                 
05       care of the family.                                                                                               
06    * Sec. 28. AS 47.25.041 is amended to read:                                                                        
07 Sec. 47.25.041. Contributions by parent or guardian. The department shall                                             
08 develop a sliding fee scale based on the factors listed in AS 47.25.031 for purposes of                                 
09 determining the amount to be contributed by the parent or guardian for child care; the                              
10 amount may not exceed seven percent of the family monthly income. The                                               
11       contribution of the parent or guardian shall be paid to the child [DAY] care facility.                        
12    * Sec. 29. AS 47.25.051 is amended to read:                                                                        
13 Sec. 47.25.051. Placement; payment by state. (a) Parents or guardians shall                                           
14       select the child [DAY] care facility for the care of their children.                                        
15 (b)  Benefits shall be paid by the department directly to the municipality or                                           
16       organization contracting with the child [DAY] care facility.                                                  
17    * Sec. 30. AS 47.25.051 is amended by adding a new subsection to read:                                             
18 (c)  The department shall use a market rate study or a cost of care study to                                            
19 establish a subsidy rate for each region served by the program established under                                        
20 AS 47.25.001. The department shall use the subsidy rate to determine the amount of                                      
21       benefits payable by the department under (b) of this section.                                                     
22    * Sec. 31. AS 47.25.071(b) is amended to read:                                                                     
23 (b)  To qualify for a grant under (a) or (d) of this section, the child care facility                                   
24       must                                                                                                              
25 (1)  be currently licensed under AS 47.32 and applicable municipal                                                      
26       licensing requirements;                                                                                           
27 (2)  participate in the child [DAY] care assistance program under                                                   
28       AS 47.25.001 - 47.25.095; [AND]                                                                                   
29 (3)  provide care under a payment system as provided in (g) of this                                                     
30       section; and                                                                                                  
31 (4)  be designated as a quality child care facility by the department.                                              



01    * Sec. 32. AS 47.25.071(g) is amended to read:                                                                     
02            (g)  A [EACH] child care facility receiving a grant under (a) or (d) of this                             
03       section shall                                                                                                     
04 (1)  assure that at least 15 percent or one of its child care spaces                                                
05 receiving subsidy under this section, whichever is greater, will be made available, if                                  
06 requested, to children eligible for child [DAY] care assistance under AS 47.25.001 -                                
07 47.25.095, whose parents or guardians wish to pay for care based on attendance only;                                
08 (2)  give priority to children from low-income families when filling                                                
09       available child care spaces in the facility.                                                                  
10    * Sec. 33. AS 47.25.071(h) is amended to read:                                                                     
11 (h)  The department shall, in consultation with a child care resource and                                           
12 referral agency in the state [INTERESTED CHILD CARE PROVIDERS] and                                                  
13 parents, adopt regulations to carry out the purposes of this section, including criteria                            
14 used to designate a child care facility as a quality child care facility under (b)(4)                               
15       of this section.                                                                                              
16    * Sec. 34. AS 47.25.071 is amended by adding new subsections to read:                                              
17 (i)  In addition to the grants provided in (a) and (d) of this section, the                                             
18 department may, subject to appropriations for that purpose, provide grants to the                                       
19 highest performing and highest quality child care facilities in the state. The department                               
20 may use quality recognition and improvement system metrics to determine the highest                                     
21 performing and highest quality child care facilities in the state. To receive a grant                                   
22 under this subsection, the child care facility must be currently licensed under AS 47.32                                
23       and applicable municipal licensing requirements.                                                                  
24 (j)  A child care facility receiving a grant under (a) or (d) of this section may                                       
25       not deny a child acceptance to the facility based on disability or socioeconomic status.                          
26    * Sec. 35. AS 47.25.095(2) is amended to read:                                                                     
27 (2)  "child care facility" means an establishment licensed as a child care                                              
28 facility under AS 47.32 [, INCLUDING DAY CARE CENTERS, FAMILY DAY                                                       
29 CARE HOMES, AND SCHOOLS FOR PRESCHOOL AGE CHILDREN,] that                                                               
30 provides care for children not related by blood, marriage, or legal adoption to the                                     
31 owner, operator, or manager of the facility, or an establishment recognized by the                                  



01       federal government for the care of children;                                                                  
02    * Sec. 36. AS 47.25.095(3) is amended to read:                                                                     
03                 (3)  "child [DAY] care" means the care, supervision, and guidance of a                              
04       child or children unaccompanied by a parent or legal guardian on a regular basis for                              
05       periods of less than 24 hours a day;                                                                              
06    * Sec. 37. AS 47.25.071(c) and 47.25.095(4) are repealed.                                                          
07    * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       CHILD CARE AND DEVELOPMENT FUND PLAN FEDERAL APPROVAL. To                                                         
10 the extent necessary to implement sec. 24 of this Act, the Department of Health shall amend                             
11 and submit for federal approval the state plan for the state's child care assistance program                            
12 under the federal child care and development fund program, consistent with AS 47.25.001(a),                             
13 as amended by sec. 24 of this Act.                                                                                      
14    * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16 CONDITIONAL EFFECT; NOTIFICATION. (a) This Act takes effect only if, on or                                              
17 before January 1, 2026, the United States Department of Health and Human Services                                       
18 (1)  approves the amendment to the state plan for child care assistance program                                         
19 under the federal child care and development fund program, consistent with AS 47.25.001(a),                             
20 as amended by sec. 24 of this Act; or                                                                                   
21 (2)  determines that approval of the amendment to the state plan for the child                                          
22 care assistance program is not necessary.                                                                               
23 (b)  The commissioner of health shall notify the revisor of statutes in writing within 30                               
24 days after the United States Department of Health and Human Services approves the                                       
25 amendment to the state plan or determines that approval is not necessary under (a)(1) or (2) of                         
26 this section.                                                                                                           
27    * Sec. 40. Section 37, ch. 61, SLA 2014, as amended by sec. 40, ch. 101, SLA 2018, is                              
28 amended to read:                                                                                                        
29 Sec. 37. Sections 1, 2, and 21, ch. 61, SLA 2014, [OF THIS ACT] take effect                                         
30       January 1, 2028 [2025].                                                                                       
31    * Sec. 41. If sec. 24 of this Act takes effect, it takes effect on the day after the date the                      



01 United States Department of Health and Human Services approves the corresponding                                        
02 amendment to the state plan or determines that approval is not necessary.                                               
03    * Sec. 42. Except as provided in sec. 41 of this Act, this Act takes effect immediately under                      
04 AS 01.10.070(c).