Legislature(2011 - 2012)

2012-02-29 House Journal

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2012-02-29                     House Journal                      Page 1741
HB 118                                                                                                                        
The following, which was returned to second reading, was before the                                                             
House with Amendment No. 1 moved and pending (page 1740):                                                                       
                                                                                                                                
    CS FOR HOUSE BILL NO. 118(FIN)                                                                                              
    "An Act relating to a tax credit for qualified research and                                                                 
    development expenditures; and providing for an effective date."                                                            
                                                                                                                                
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 1                                                                                                                 
                                                                                                                                
YEAS:  10   NAYS:  25   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki,                                                                  
Kerttula, Miller, Petersen, Tuck                                                                                                
                                                                                                                                

2012-02-29                     House Journal                      Page 1742
Nays:  Austerman, Chenault, Costello, Dick, Edgmon, Fairclough,                                                                 
Feige, Foster, Herron, Holmes, Johansen, Johnson, Joule, Keller,                                                                
Lynn, Millett, Munoz, Pruitt, Saddler, Seaton, Stoltze, Thomas,                                                                 
Thompson, P.Wilson, T.Wilson                                                                                                    
                                                                                                                                
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, Amendment No. 1 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 2 was offered  by Representative Gara:                                                                             
                                                                                                                                
Page 1, line 9:                                                                                                                 
    Delete "the taxable year"                                                                                                   
    Insert "a taxable year ending before January 1, 2017,"                                                                      
                                                                                                                                
Page 2, following line 25:                                                                                                      
    Insert a new bill section to read:                                                                                          
"* Sec. 2. AS 43.20.047 is repealed January 1, 2024."                                                                         
                                                                                                                                
Renumber the following bill section accordingly.                                                                                
                                                                                                                                
Representative Gara moved and asked unanimous consent that                                                                      
Amendment No. 2 be adopted.                                                                                                     
                                                                                                                                
Representative Pruitt objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  12   NAYS:  23   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Joule,                                                             
Kawasaki, Kerttula, Miller, Petersen, Tuck                                                                                      
                                                                                                                                
Nays:  Austerman, Chenault, Costello, Dick, Edgmon, Fairclough,                                                                 
Feige, Foster, Herron, Johansen, Johnson, Keller, Lynn, Millett,                                                                
Munoz, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson,                                                                      
P.Wilson, T.Wilson                                                                                                              
                                                                                                                                

2012-02-29                     House Journal                      Page 1743
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, Amendment No. 2 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 3 was offered  by Representative Gardner:                                                                          
                                                                                                                                
Page 2, following line 18:                                                                                                      
    Insert a new subsection to read:                                                                                            
         "(f)  The total amount of the credit authorized under this                                                             
    section for all taxpayers may not exceed $50,000,000 in a calendar                                                          
    year. The department may adopt regulations that provide the                                                                 
    standards and procedures to prorate the amount of credit available                                                          
    to each taxpayer when the total amount of tax credits claimed by                                                            
    all taxpayers under this section for a calendar year exceeds                                                                
    $50,000,000."                                                                                                               
                                                                                                                                
Reletter the following subsection accordingly.                                                                                  
                                                                                                                                
Representative Gardner moved and asked unanimous consent that                                                                   
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative Feige objected.                                                                                                  
                                                                                                                                
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  10   NAYS:  25   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes,                                                                    
Kawasaki, Kerttula, Miller, Tuck                                                                                                
                                                                                                                                
Nays:  Austerman, Chenault, Costello, Dick, Edgmon, Fairclough,                                                                 
Feige, Foster, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett,                                                         
Munoz, Petersen, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson,                                                            
P.Wilson, T.Wilson                                                                                                              
                                                                                                                                
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, Amendment No. 3 was not adopted.                                                                                        
                                                                                                                                

2012-02-29                     House Journal                      Page 1744
Amendment No. 4 was offered  by Representative Gardner:                                                                          
                                                                                                                                
Page 1, line 1, following "expenditures;" (title amendment):                                                                  
    Insert "relating to information about research and                                                                        
development expenditures that must be provided in order to claim                                                              
a qualified research and development tax credit for those                                                                     
expenditures;"                                                                                                                
                                                                                                                                
Page 2, line 10, following "AS 43.20.011(e)":                                                                                   
    Insert ", for which information was not submitted in a report under                                                         
(f) of this section,"                                                                                                           
                                                                                                                                
Page 2, following line 18:                                                                                                      
    Insert a new subsection to read:                                                                                            
         "(f)  A taxpayer shall file with the department before April 1                                                         
    of the following year a statement, under oath, in a form prescribed                                                         
    by the department, giving, for each research and development                                                                
    expenditure that is the basis for a credit claimed under                                                                    
    AS 43.20.047, a description of the expenditure and a general                                                                
    description of the purpose of the expenditure. Notwithstanding                                                              
    AS 40.25.100(a) and AS 43.05.230(a), information submitted                                                                  
    under this subsection shall be published by the department on the                                                           
    department's Internet website and shall be disclosed to the                                                                 
    legislature in a report submitted within 10 days after the                                                                  
    convening of the next regular legislative session following the                                                             
    date a statement is filed under this section."                                                                              
                                                                                                                                
Reletter the following subsection accordingly.                                                                                  
                                                                                                                                
Representative Gardner moved and asked unanimous consent that                                                                   
Amendment No. 4 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 4 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 4                                                                                                                 
                                                                                                                                
YEAS:  10   NAYS:  25   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                

2012-02-29                     House Journal                      Page 1745
Yeas:  Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki,                                                                  
Kerttula, Miller, Petersen, Tuck                                                                                                
                                                                                                                                
Nays:  Austerman, Chenault, Costello, Dick, Edgmon, Fairclough,                                                                 
Feige, Foster, Herron, Holmes, Johansen, Johnson, Joule, Keller,                                                                
Lynn, Millett, Munoz, Pruitt, Saddler, Seaton, Stoltze, Thomas,                                                                 
Thompson, P.Wilson, T.Wilson                                                                                                    
                                                                                                                                
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, Amendment No. 4 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 5 was offered  by Representative Gruenberg:                                                                        
                                                                                                                                
Page 1, line 10, following "chapter.":                                                                                          
    Insert "If the taxpayer is a member of an affiliated group, then the                                                        
total amount of credits under this section may not exceed $10,000,000                                                           
for the affiliated group. In this subsection, "affiliated group" has the                                                        
meaning given in AS 43.20.073."                                                                                                 
                                                                                                                                
Representative Gruenberg moved and asked unanimous consent that                                                                 
Amendment No. 5 be adopted.                                                                                                     
                                                                                                                                
Representative Johnson objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 5 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 5                                                                                                                 
                                                                                                                                
YEAS:  13   NAYS:  22   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes,                                                                    
Kawasaki, Kerttula, Miller, Munoz, Petersen, Seaton, Tuck                                                                       
                                                                                                                                
Nays:  Austerman, Chenault, Costello, Dick, Edgmon, Fairclough,                                                                 
Feige, Foster, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett,                                                         
Pruitt, Saddler, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson                                                                  
                                                                                                                                
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, Amendment No. 5 was not adopted.                                                                                        
                                                                                                                                

2012-02-29                     House Journal                      Page 1746
Amendment No. 6 was offered  by Representative Gruenberg:                                                                        
                                                                                                                                
Page 2, lines 12 - 18:                                                                                                          
    Delete all material and insert:                                                                                             
         "(e)  The department shall make an annual report to the                                                                
    legislature that states the number of taxpayers who claimed credits                                                         
    under this section and the total amount of credits granted to all                                                           
    taxpayers under this section in the immediately preceding year.                                                            
         (f)  Notwithstanding AS 40.25.100 and AS 43.05.230(a), at                                                              
    the time the report is made to the legislature under (e) of this                                                            
    section, the department shall submit a confidential report to the                                                           
    legislature that states, for each taxpayer, the amount of credit                                                            
    granted, a description of each qualified research and development                                                           
    project for which the credit was granted, and the number of                                                                 
    employees conducting the qualified research and development for                                                             
    which the credit was granted. Although the report submitted under                                                           
    this subsection must include information for each taxpayer that                                                             
    has been granted a credit under this section, the report may not                                                            
    include the name of a taxpayer."                                                                                            
                                                                                                                                
Reletter the following subsection accordingly.                                                                                  
                                                                                                                                
Representative Gruenberg moved and asked unanimous consent that                                                                 
Amendment No. 6 be adopted.                                                                                                     
                                                                                                                                
Representative Costello objected.                                                                                               
                                                                                                                                
The question being:  "Shall Amendment No. 6 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 6                                                                                                                 
                                                                                                                                
YEAS:  11   NAYS:  24   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Doogan, Edgmon, Gara, Gardner, Gruenberg, Guttenberg,                                                                    
Kawasaki, Kerttula, Miller, Petersen, Tuck                                                                                      
                                                                                                                                
Nays:  Austerman, Chenault, Costello, Dick, Fairclough, Feige, Foster,                                                          
Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett,                                                                
Munoz, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson,                                                                      
P.Wilson, T.Wilson                                                                                                              
                                                                                                                                

2012-02-29                     House Journal                      Page 1747
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, Amendment No. 6 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 7 was offered  by Representative Tuck:                                                                             
                                                                                                                                
Page 2, following line 7:                                                                                                       
    Insert a new subsection to read:                                                                                            
         "(d)  At the time a return is filed under this chapter on which                                                        
    the credit under this section is claimed, the taxpayer shall submit a                                                       
    statement that includes a description of the research and                                                                   
    development activities conducted that are attributable to the state                                                         
    and the qualified research and development expenditures for                                                                 
    which credit is claimed. The statement submitted under this                                                                 
    subsection must be verified by an independent certified public                                                              
    accountant licensed in the state."                                                                                          
                                                                                                                                
Reletter the following subsections accordingly.                                                                                 
                                                                                                                                
Representative Tuck moved and asked unanimous consent that                                                                      
Amendment No. 7 be adopted.                                                                                                     
                                                                                                                                
Representative Thompson objected.                                                                                               
                                                                                                                                
The question being:  "Shall Amendment No. 7 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 7                                                                                                                 
                                                                                                                                
YEAS:  11   NAYS:  24   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes,                                                                    
Kawasaki, Kerttula, Miller, Petersen, Tuck                                                                                      
                                                                                                                                
Nays:  Austerman, Chenault, Costello, Dick, Edgmon, Fairclough,                                                                 
Feige, Foster, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett,                                                         
Munoz, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson,                                                                      
P.Wilson, T.Wilson                                                                                                              
                                                                                                                                
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                

2012-02-29                     House Journal                      Page 1748
Gardner changed from "Nay" to "Yea".                                                                                            
                                                                                                                                
And so, Amendment No. 7 was not adopted.                                                                                        
                                                                                                                                
CSHB 118(FIN) was automatically in third reading.                                                                               
                                                                                                                                
The question being:  "Shall CSHB 118(FIN) pass the House?"  The                                                                 
roll was taken with the following result:                                                                                       
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Third Reading                                                                                                                   
Final Passage                                                                                                                   
                                                                                                                                
YEAS:  23   NAYS:  12   EXCUSED:  5   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Austerman, Chenault, Costello, Dick, Fairclough, Feige, Foster,                                                          
Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz,                                                                 
Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson,                                                                   
T.Wilson                                                                                                                        
                                                                                                                                
Nays:  Doogan, Edgmon, Gara, Gardner, Gruenberg, Guttenberg,                                                                    
Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck                                                                              
                                                                                                                                
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, CSHB 118(FIN) passed the House.                                                                                         
                                                                                                                                
Representative Austerman moved the effective date clause.                                                                       
                                                                                                                                
                                                                                                                                
The question being:  "Shall the effective date clause be adopted?"  The                                                         
roll was taken with the following result:                                                                                       
                                                                                                                                
CSHB 118(FIN)                                                                                                                   
Third Reading                                                                                                                   
Effective Date                                                                                                                  
                                                                                                                                
YEAS:  35   NAYS:  0   EXCUSED:  5   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Austerman, Chenault, Costello, Dick, Doogan, Edgmon,                                                                     
Fairclough, Feige, Foster, Gara, Gardner, Gruenberg, Guttenberg,                                                                
Herron, Holmes, Johansen, Johnson, Joule, Kawasaki, Keller,                                                                     
Kerttula, Lynn, Miller, Millett, Munoz, Petersen, Pruitt, Saddler,                                                              
Seaton, Stoltze, Thomas, Thompson, Tuck, P.Wilson, T.Wilson                                                                     
                                                                                                                                

2012-02-29                     House Journal                      Page 1749
Excused:  Cissna, Gatto, Hawker, Neuman, Olson                                                                                  
                                                                                                                                
And so, the effective date clause was adopted.                                                                                  
                                                                                                                                
Representative Lynn gave notice of reconsideration of the vote on                                                               
CSHB 118(FIN).