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HB 113: "An Act relating to a tax exemption for qualified small businesses; and providing for an effective date."

00 HOUSE BILL NO. 113 01 "An Act relating to a tax exemption for qualified small businesses; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.20.012(a) is amended to read: 05 (a) The tax imposed by this chapter does not apply to 06 (1) an individual; 07 (2) a fiduciary; 08 (3) the income received by a regional association qualified under 09 AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 10 from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery 11 fishery under AS 16.10.455; [OR] 12 (4) the income received by a nonprofit corporation holding a permit 13 under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from a cost 14 recovery fishery under AS 16.12.090; or

01 (5) an Alaska corporation that is a qualified small business and 02 that meets the active business requirements in 26 U.S.C. 1202(e), as that 03 subsection read on January 1, 2012. 04 * Sec. 2. AS 43.20.012 is amended by adding new subsections to read: 05 (e) For the purposes of (a)(5) of this section, 06 (1) whether a corporation qualifies under (a)(5) of this section shall be 07 determined on the first day of the tax year for which the corporation claims it qualifies 08 under (a)(5) of this section; 09 (2) all corporations that are members of the same parent-subsidiary 10 controlled group shall be treated as one corporation. 11 (f) In this section, 12 (1) "Alaska corporation" means a corporation that has been 13 incorporated in the state or is authorized to do business in the state; 14 (2) "parent-subsidiary controlled group" has the meaning given in 26 15 U.S.C. 1202, as that section read on January 1, 2012; 16 (3) "qualified small business" has the meaning given in 26 U.S.C. 17 1202, as that section read on January 1, 2012, and does not include a construction, 18 transportation, utility, or fisheries business. 19 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 APPLICABILITY. AS 43.20.012(a), as amended by sec. 1 of this Act, and 22 AS 43.20.012(e) and (f), enacted by sec. 2 of this Act, apply to the tax year of a corporation 23 beginning on or after the effective date of this Act. 24 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).