1997-03-14                     Senate Journal                      Page 0741
SB 140                                                                       
was read the first time and referred to the Health, Education and              
Social Services and Finance Committees.                                        
                                                                               
Fiscal note published today from Department of Revenue.                        
                                                                               
Governors transmittal letter dated March 13:                                   
                                                                               
Dear President Miller:                                                         
                                                                               
As part of my Alaska Business Investment Incentive Plan to expand              
the partnership between the state and the private sector, I am                 
submitting this legislation to enhance the existing tax credit for             
contributions to Alaskas colleges and universities and to expand it            
to cover contributions to our public elementary and secondary                  
schools.                                                                       
                                                                               
Education is vital to an expanding economy and to preparing                    
Alaskans for good jobs.  In todays climate of declining revenues               
and reduced budgets, it is vital we provide incentives to stimulate            
increased private contributions for our post-secondary institutions.           
This initiative will build on the program started several years ago            
which has generated millions of additional dollars from the private            
sector to higher education in Alaska.                                          
                                                                               
Under current law, taxpayers may claim a credit against several types          
of state taxes for contributions to eligible Alaska colleges or                
universities.  The credit is capped at $150,000 a year based on                
$200,000 in contributions.  This bill extends the cap on the tax               
credit by creating a new tier of creditable contributions.  Under this         
new tier of contributions, a taxpayer may claim a credit of 50% of             
an additional $150,000 of eligible contributions.                              
                                                                               
The bill would also establish a new program which provides a tax               
credit of 50% of contributions up to $100,000 to local school                  
districts for educational support to our primary and secondary                 
schools.