Legislature(2023 - 2024)
2024-05-01 House Journal
Full Journal pdf2024-05-01 House Journal Page 2563 HB 144 The following, which was held in second reading from the April 29 calendar (page 2493), was before the body: HOUSE BILL NO. 144 "An Act relating to education tax credits; and providing for an effective date by repealing the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014." Amendment No. 1 was offered by Representative Eastman: Page 1, lines 1 - 2 (title amendment): Delete "by repealing the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014" Page 1, lines 4 - 6: Delete all material and insert: "* Section 1. AS 21.06.110 is amended to read: Sec. 21.06.110. Director's annual report. As early in each calendar year as is reasonably possible, the director shall prepare and deliver an annual report to the commissioner, who shall notify the legislature that the report is available, showing, with respect to the preceding calendar year, (1) a list of the authorized insurers transacting insurance in this state, with a summary of their financial statement as the director considers appropriate; (2) the name of each insurer whose certificate of authority was surrendered, suspended, or revoked during the year and the cause of surrender, suspension, or revocation; (3) the name of each insurer authorized to do business in 2024-05-01 House Journal Page 2564 this state against which delinquency or similar proceedings were instituted and, if against an insurer domiciled in this state, a concise statement of the facts with respect to each proceeding and its present status; (4) a statement in regard to examination of rating organizations, advisory organizations, joint underwriters, and joint reinsurers as required by AS 21.39.120; (5) the receipt and expenses of the division for the year; (6) recommendations of the director as to amendments or supplementation of laws affecting insurance or the office of director; (7) statistical information regarding health insurance, including the number of individual and group policies sold or terminated in the state; this paragraph does not authorize the director to require an insurer to release proprietary information; (8) the annual percentage of health claims paid in the state that meets the requirements of AS 21.36.495(a) and (d); (9) the total amount of contributions reported and the total amount of credit claimed under AS 21.96.071 [REPEALED]; (10) the total number of public comments received and the director's efforts, to the extent allowable by law, to improve or maintain public access to information on individual health insurance rate filings before they become effective; and (11) other pertinent information and matters the director considers proper. * Sec. 2. AS 21.09.210 is amended by adding a new subsection to read: (q) The provisions of AS 21.96.071 apply to a taxpayer who is required to pay a tax due under this section. * Sec. 3. AS 21.66.110 is amended by adding a new subsection to read: (d) The provisions of AS 21.96.071 apply to a taxpayer who is required to pay the tax due under this section. * Sec. 4. AS 21.96 is amended by adding a new section to read: Sec. 21.96.071. Insurance tax education credit. (a) A taxpayer is allowed a credit against the tax due under AS 21.09.210 or AS 21.66.110 for contributions of cash or equipment accepted (1) for direct instruction, research, and educational 2024-05-01 House Journal Page 2565 support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation or by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association; (2) for secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) for vocational education courses, programs, and facilities by a state-operated vocational technical education and training school; (4) for a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association; (5) for Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; and (6) for education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 43.20.019, AS 43.55.022, AS 43.56.021, AS 43.65.021, AS 43.75.021, or AS 43.77.047, result in the total amount of credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under AS 21.09.210 or AS 21.66.110 to below zero for any tax year. An unused credit or portion of a credit not used 2024-05-01 House Journal Page 2566 under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) In this section, (1) "school district" means a borough school district, a city school district, a regional educational attendance area, or a state boarding school; (2) "vocational education" has the meaning given in AS 43.20.019. * Sec. 5. AS 43.05.010 is amended to read: Sec. 43.05.010. Duties of commissioner. The commissioner of revenue shall (1) exercise general supervision and direct the activities of the Department of Revenue; (2) supervise the fiscal affairs and responsibilities of the department; (3) prescribe uniform rules for investigations and hearings; (4) keep a record of all departmental proceedings, record and file all bonds, and assume custody of returns, reports, papers, and documents of the department; (5) adopt a seal and affix it to each order, process, or certificate issued by the commissioner; (6) keep a record of each order, process, and certificate issued by the commissioner, and keep the record open to public inspection at all reasonable times; (7) hold hearings and investigations necessary for the administration of state tax and revenue laws; (8) except as provided in AS 43.05.405 - 43.05.499 and in AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the Department of Revenue and enter orders on the appeals that are final unless reversed or modified by the courts; (9) issue subpoenas to require the attendance of witnesses and the production of necessary books, papers, documents, correspondence, and other things; (10) order the taking of depositions before a person competent to administer oaths; (11) administer oaths and take acknowledgments; (12) request the attorney general for rulings on the interpretation of the tax and revenue laws administered by the 2024-05-01 House Journal Page 2567 department; (13) call on [UPON] the attorney general to institute actions for recovery of unpaid taxes, fees, excises, additions to tax, penalties, and interest; (14) issue warrants for the collection of unpaid tax penalties and interest and take all steps necessary and proper to enforce full and complete compliance with the tax, license, excise, and other revenue laws of the state; (15) report to the legislature before February 15 of each year the total amount of contributions reported and the total amount of credit claimed during the previous calendar year under AS 43.20.019, AS 43.55.022, AS 43.56.021, AS 43.65.021, AS 43.75.021, and AS 43.77.047 [REPEALED]; (16) consult with the commissioner of natural resources on negotiation of contracts and development of terms for inclusion in proposed contracts associated with a North Slope natural gas project; (17) direct the disposition of revenue received from gas delivered to the state under AS 43.55.014(b) by entering into agreements with the commissioner of natural resources related to the management of the custody and disposition of gas delivered to the state under AS 43.55.014(b). * Sec. 6. AS 43.20 is amended by adding a new section to read: Sec. 43.20.019. Income tax education credit. (a) A taxpayer is allowed a credit against the tax due under this chapter for contributions of cash or equipment accepted for (1) direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation, by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association, or by a public or private nonprofit elementary or secondary school in the state; (2) secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) vocational education courses, programs, equipment, and facilities by a state-operated vocational technical education and training school, a nonprofit regional training center recognized by the Department of Labor and Workforce Development, and an apprenticeship program in the state that is 2024-05-01 House Journal Page 2568 registered with the United States Department of Labor under 29 U.S.C. 50 - 50b (National Apprenticeship Act); (4) a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association or by a public or private nonprofit elementary or secondary school in the state; (5) Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; (7) the Alaska higher education investment fund under AS 37.14.750; (8) funding a scholarship awarded by a nonprofit organization to a dual-credit student to defray the cost of a dual- credit course, including the cost of (A) tuition and textbooks; (B) registration, course, and programmatic student fees; (C) on-campus room and board at the postsecondary institution in the state that provides the dual-credit course; (D) transportation costs to and from a residential school approved by the Department of Education and Early Development under AS 14.16.200 or the postsecondary school in the state that provides the dual-credit course; and (E) other related educational and programmatic costs; (9) constructing, operating, or maintaining a residential housing facility by a residential school in the state approved by the Department of Education and Early Development under AS 14.16.200; (10) childhood early learning and development programs and educational support to childhood early learning and development programs provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or a school district in the state, by the Department of Education and Early Development, or through a state grant; 2024-05-01 House Journal Page 2569 (11) science, technology, engineering, and math programs provided by a nonprofit agency or a school district for school staff and for students in grades kindergarten through 12 in the state; and (12) the operation of a nonprofit organization dedicated to providing educational opportunities that promote the legacy of public service contributions to the state and perpetuate ongoing educational programs that foster public service leadership for future generations of residents of the state. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; (2) also be allowed as a deduction under 26 U.S.C. 170 against the tax imposed by this chapter; and (3) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.071, AS 43.55.022, AS 43.56.021, AS 43.65.021, AS 43.75.021, or AS 43.77.047, result in the total amount of credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under this chapter to below zero for any tax year. An unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (g) In this section, (1) "dual-credit student" means a secondary level student in the state who simultaneously earns college and high school credit for a course; 2024-05-01 House Journal Page 2570 (2) "nonprofit organization" means a charitable or educational organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code); (3) "school district" means a borough school district, a city school district, a regional educational attendance area, or a state boarding school; (4) "vocational education" means organized educational activities that offer a sequence of courses that provides individuals with the academic and technical knowledge and skills the individuals need to prepare for further education and for careers other than careers requiring a baccalaureate, master's, or doctoral degree. * Sec. 7. AS 43.55 is amended by adding a new section to read: Sec. 43.55.022. Oil or gas producer education credit. (a) A producer of oil or gas is allowed a credit against the tax levied by AS 43.55.011(e) for contributions of cash or equipment accepted for (1) direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation or by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association; (2) secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) vocational education courses, programs, equipment, and facilities by a state-operated vocational technical education and training school, a nonprofit regional training center recognized by the Department of Labor and Workforce Development, and an apprenticeship program in the state that is registered with the United States Department of Labor under 29 U.S.C. 50 - 50b (National Apprenticeship Act); (4) a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association; (5) Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) education, research, rehabilitation, and facilities by an 2024-05-01 House Journal Page 2571 institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; and (7) the Alaska higher education investment fund under AS 37.14.750. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.071, AS 43.20.019, AS 43.56.021, AS 43.65.021, AS 43.75.021, or AS 43.77.047, result in the total amount of credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under AS 43.55.011(e) to below zero for any tax year. An unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) The department may, by regulation, establish procedures by which a taxpayer may allocate a pro rata share of a credit claimed under this section against monthly tax payments made during the tax year. (g) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (h) In this section, (1) "school district" has the meaning given in AS 43.20.019(g); (2) "vocational education" has the meaning given in AS 43.20.019(g). * Sec. 8. AS 43.56 is amended by adding a new section to read: 2024-05-01 House Journal Page 2572 Sec. 43.56.021. Property tax education credit. (a) The owner of property taxable under this chapter is allowed a credit against the tax due under this chapter for contributions of cash or equipment accepted for (1) direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation or by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association; (2) secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) vocational education courses, programs, and facilities by a state-operated vocational technical education and training school; (4) a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association; (5) Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; and (7) the Alaska higher education investment fund under AS 37.14.750. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.071, AS 43.20.019, AS 43.55.022, AS 43.65.021, AS 43.75.021, or AS 43.77.047, result in the total amount of 2024-05-01 House Journal Page 2573 credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under this chapter to below zero for any tax year. An unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (g) In this section, (1) "school district" has the meaning given in AS 43.20.019(g); (2) "vocational education" has the meaning given in AS 43.20.019(g). * Sec. 9. AS 43.65 is amended by adding a new section to read: Sec. 43.65.021. Mining business education credit. (a) A person engaged in the business of mining in the state is allowed a credit against the tax due under this chapter for contributions of cash or equipment accepted for (1) direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation, by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association, or by a public or private nonprofit elementary or secondary school in the state; (2) secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) vocational education courses, programs, and facilities by a state- operated vocational technical education and training school; (4) a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association or by a public or private nonprofit elementary or secondary school in the state; (5) Alaska Native cultural or heritage programs and 2024-05-01 House Journal Page 2574 educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; (7) the Alaska higher education investment fund under AS 37.14.750; (8) funding a scholarship awarded by a nonprofit organization to a dual-credit student to defray the cost of a dual- credit course, including the cost of (A) tuition and textbooks; (B) registration, course, and programmatic student fees; (C) on-campus room and board at the postsecondary institution in the state that provides the dual-credit course; (D) transportation costs to and from a residential school approved by the Department of Education and Early Development under AS 14.16.200 or the postsecondary school in the state that provides the dual-credit course; and (E) other related educational and programmatic costs; (9) constructing, operating, or maintaining a residential housing facility by a residential school approved by the Department of Education and Early Development under AS 14.16.200; (10) childhood early learning and development programs and educational support to childhood early learning and development programs provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or a school district in the state, by the Department of Education and Early Development, or through a state grant; (11) science, technology, engineering, and math programs provided by a nonprofit agency or a school district for school staff and for students in grades kindergarten through 12 in the state; and (12) the operation of a nonprofit organization dedicated to providing educational opportunities that promote the legacy of public service contributions to the state and perpetuate ongoing 2024-05-01 House Journal Page 2575 educational programs that foster public service leadership for future generations of residents of the state. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.071, AS 43.20.019, AS 43.55.022, AS 43.56.021, AS 43.75.021, or AS 43.77.047, result in the total amount of the credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under this chapter to below zero for any tax year. An unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (g) In this section, (1) "dual-credit student" means a secondary level student in the state who simultaneously earns college and high school credit for a course; (2) "nonprofit organization" means a charitable or educational organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code); (3) "school district" has the meaning given in AS 43.20.019(g); (4) "vocational education" has the meaning given in AS 43.20.019(g). * Sec. 10. AS 43.75 is amended by adding a new section to read: Sec. 43.75.021. Fisheries business education credit. (a) A 2024-05-01 House Journal Page 2576 person engaged in a fisheries business is allowed a credit against the tax due under this chapter for contributions of cash or equipment accepted for (1) direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation, by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association, or by a public or private nonprofit elementary or secondary school in the state; (2) secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) vocational education courses, programs, and facilities by a state-operated vocational technical education and training school; (4) a facility by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association or by a public or private nonprofit elementary or secondary school in the state; (5) Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; (7) the Alaska higher education investment fund under AS 37.14.750; (8) funding a scholarship awarded by a nonprofit organization to a dual-credit student to defray the cost of a dual- credit course, including the cost of (A) tuition and textbooks; (B) registration, course, and programmatic student fees; (C) on-campus room and board at the postsecondary institution in the state that provides the dual-credit course; (D) transportation costs to and from a residential school approved by the Department of Education and Early Development under AS 14.16.200 or the postsecondary 2024-05-01 House Journal Page 2577 school in the state that provides the dual-credit course; and (E) other related educational and programmatic costs; (9) constructing, operating, or maintaining a residential housing facility by a residential school approved by the Department of Education and Early Development under AS 14.16.200; (10) childhood early learning and development programs and educational support to childhood early learning and development programs provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or a school district in the state, by the Department of Education and Early Development, or through a state grant; (11) science, technology, engineering, and math programs provided by a nonprofit agency or a school district for school staff and for students in grades kindergarten through 12 in the state; and (12) the operation of a nonprofit organization dedicated to providing educational opportunities that promote the legacy of public service contributions to the state and perpetuate ongoing educational programs that foster public service leadership for future generations of residents of the state. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.071, AS 43.20.019, AS 43.55.022, AS 43.56.021, AS 43.65.021, or AS 43.77.047, result in the total amount of the credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under this chapter to below zero for any tax year. An 2024-05-01 House Journal Page 2578 unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (g) In this section, (1) "dual-credit student" means a secondary level student in the state who simultaneously earns college and high school credit for a course; (2) "nonprofit organization" means a charitable or educational organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code); (3) "school district" has the meaning given in AS 43.20.019(g); (4) "vocational education" has the meaning given in AS 43.20.019(g). * Sec. 11. AS 43.75.130 is amended by adding a new subsection to read: (i) In this section, "tax revenue collected" includes the amount credited against taxes under AS 43.75.021. * Sec. 12. AS 43.77 is amended by adding a new section to read: Sec. 43.77.047. Fisheries resource landing tax education credit. (a) A person engaged in a floating fisheries business is allowed a credit against the tax due under this chapter for contributions of cash or equipment accepted for (1) direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an Alaska university foundation, by a nonprofit, public or private, Alaska two-year or four-year college accredited by a national or regional accreditation association, or by a public or private nonprofit elementary or secondary school in the state; (2) secondary school level vocational education courses, programs, and facilities by a school district in the state; (3) vocational education courses, programs, and facilities by a state-operated vocational technical education and training school; (4) a facility by a nonprofit, public or private, Alaska 2024-05-01 House Journal Page 2579 two-year or four-year college accredited by a national or regional accreditation association or by a public or private nonprofit elementary or secondary school in the state; (5) Alaska Native cultural or heritage programs and educational support, including mentoring and tutoring, provided by a nonprofit agency for public school staff and for students who are in grades kindergarten through 12 in the state; (6) education, research, rehabilitation, and facilities by an institution that is located in the state and that qualifies as a coastal ecosystem learning center under the Coastal America Partnership established by the federal government; (7) the Alaska higher education investment fund under AS 37.14.750; (8) funding a scholarship awarded by a nonprofit organization to a dual-credit student to defray the cost of a dual- credit course, including the cost of (A) tuition and textbooks; (B) registration, course, and programmatic student fees; (C) on-campus room and board at the postsecondary institution in the state that provides the dual-credit course; (D) transportation costs to and from a residential school approved by the Department of Education and Early Development under AS 14.16.200 or the postsecondary school in the state that provides the dual-credit course; and (E) other related educational and programmatic costs; (9) constructing, operating, or maintaining a residential housing facility by a residential school approved by the Department of Education and Early Development under AS 14.16.200; (10) childhood early learning and development programs and educational support to childhood early learning and development programs provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or a school district in the state, by the Department of Education and Early Development, or through a state grant; (11) science, technology, engineering, and math programs provided by a nonprofit agency or a school district for school staff and for students in grades kindergarten through 12 in 2024-05-01 House Journal Page 2580 the state; and (12) the operation of a nonprofit organization dedicated to providing educational opportunities that promote the legacy of public service contributions to the state and perpetuate ongoing educational programs that foster public service leadership for future generations of residents of the state. (b) The amount of the credit is 50 percent of contributions. (c) Each public college and university shall include in its annual operating budget request contributions received and how the contributions were used. (d) A contribution claimed as a credit under this section may not (1) be the basis for a credit claimed under another provision of this title; and (2) when combined with contributions that are the basis for credits taken during the taxpayer's tax year under AS 21.96.071, AS 43.20.019, AS 43.55.022, AS 43.56.021, AS 43.65.021, or AS 43.75.021, result in the total amount of the credits exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the total amount of credits may not exceed $1,000,000 for the affiliated group; in this paragraph, "affiliated group" has the meaning given in AS 43.20.145. (e) The credit under this section may not reduce a person's tax liability under this chapter to below zero for any tax year. An unused credit or portion of a credit not used under this section for a tax year may not be sold, traded, transferred, or applied in a subsequent tax year. (f) To qualify for a credit under this section, equipment must be appraised consistent with regulations adopted by the department to determine the value of the contribution for purposes of this section. (g) In this section, (1) "dual-credit student" means a secondary level student in the state who simultaneously earns college and high school credit for a course; (2) "nonprofit organization" means a charitable or educational organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code); (3) "school district" has the meaning given in AS 43.20.019(g); 2024-05-01 House Journal Page 2581 (4) "vocational education" has the meaning given in AS 43.20.019(g). * Sec. 13. AS 43.77.060 is amended by adding a new subsection to read: (f) For purposes of this section, tax revenue collected under AS 43.77.010 from a person entitled to a credit under AS 43.77.047 shall be calculated as if the person's tax had been collected without applying the credits. * Sec. 14. Sections 1 and 5 of this Act take effect January 2, 2025. * Sec. 15. Except as provided in sec. 14 of this Act, this Act takes effect January 1, 2025." Representative Eastman moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Ruffridge objected. Representative Eastman moved and asked unanimous consent to withdraw Amendment No. 1. Representative McCabe objected. The question being: "Shall Amendment No. 1 be withdrawn?" The roll was taken with the following result: HB 144 Second Reading Amendment No. 1/Withdraw YEAS: 14 NAYS: 26 EXCUSED: 0 ABSENT: 0 Yeas: Armstrong, Carrick, Dibert, Eastman, Fields, Galvin, Groh, Hannan, Himschoot, McCormick, Mina, Ruffridge, Schrage, Story Nays: Allard, Baker, Carpenter, Coulombe, Cronk, Edgmon, Foster, Gray, C.Johnson, D.Johnson, Josephson, McCabe, McKay, Mears, Ortiz, Prax, Rauscher, Saddler, Shaw, Stapp, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright And so, the motion failed. 2024-05-01 House Journal Page 2582 The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: HB 144 Second Reading Amendment No. 1 YEAS: 8 NAYS: 32 EXCUSED: 0 ABSENT: 0 Yeas: Dibert, Eastman, Galvin, Gray, Hannan, Ortiz, Schrage, Stutes Nays: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Edgmon, Fields, Foster, Groh, Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick, McKay, Mears, Mina, Prax, Rauscher, Ruffridge, Saddler, Shaw, Stapp, Story, Sumner, Tilton, Tomaszewski, Vance, Wright And so, Amendment No. 1 was not adopted. Amendment No. 2 was offered by Representative Sumner: Page 1, line 1, following "Act" (title amendment) : Insert "relating to the tax on corporations; relating to a tax exemption for qualified small businesses;" Page 1, following line 3: Insert new bill sections to read: "* Section 1. AS 43.20.012(a) is amended to read: (a) The tax imposed by this chapter does not [APPLY TO] (1) apply to an individual; (2) apply to a fiduciary; (3) apply to the income received by a regional association qualified under AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery fishery under AS 16.10.455; [OR] (4) apply to the income received by a nonprofit corporation holding a permit under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from a cost recovery fishery under AS 16.12.090; or (5) for a tax year beginning after June 30, 2024, apply to an Alaska corporation that is a qualified small business and 2024-05-01 House Journal Page 2583 that meets the active business requirements in 26 U.S.C. 1202(e), as that subsection read on January 1, 2012. * Sec. 2. AS 43.20.012 is amended by adding new subsections to read: (e) For the purposes of (a)(5) of this section, (1) whether a corporation qualifies under (a)(5) of this section shall be determined on the first day of the tax year for which the corporation claims it qualifies under (a)(5) of this section; (2) all corporations that are members of the same parent- subsidiary controlled group shall be treated as one corporation. (f) In this section, (1) "Alaska corporation" means a corporation that has been incorporated in the state or is authorized to do business in the state; (2) "parent-subsidiary controlled group" has the meaning given in 26 U.S.C. 1202, as that section read on January 1, 2012; (3) "qualified small business" has the meaning given in 26 U.S.C. 1202, as that section read on January 1, 2012, and does not include a construction, transportation, utility, or fisheries business." Page 1, line 4: Delete "Section 1" Insert "Sec. 3" Renumber the following bill section accordingly. Representative Sumner moved and asked unanimous consent that Amendment No. 2 be adopted. There was objection. Representative Sumner moved and asked unanimous consent to withdraw Amendment No. 2. There being no objection, it was so ordered. Amendment No. 3 was offered by Representatives Vance and Ruffridge: 2024-05-01 House Journal Page 2584 Page 1, following line 3: Insert new bill sections to read: "* Section 1. AS 21.96.070 is amended by adding a new subsection to read: (g) As a condition of receiving a tax credit for a contribution for research under (a) of this section, a taxpayer must demonstrate that research resulting from the contribution is made available to the state. * Sec. 2. AS 43.20.014 is amended by adding a new subsection to read: (h) As a condition of receiving a tax credit for a contribution for research under (a) of this section, a taxpayer must demonstrate that research resulting from the contribution is made available to the state. * Sec. 3. AS 43.55.019 is amended by adding a new subsection to read: (i) As a condition of receiving a tax credit for a contribution for research under (a) of this section, a producer must demonstrate that research resulting from the contribution is made available to the state. * Sec. 4. AS 43.56.018 is amended by adding a new subsection to read: (h) As a condition of receiving a tax credit for a contribution for research under (a) of this section, an owner of property taxable under this chapter must demonstrate that research resulting from the contribution is made available to the state. * Sec. 5. AS 43.65.018 is amended by adding a new subsection to read: (h) As a condition of receiving a tax credit for a contribution for research under (a) of this section, a person engaged in the business of mining in the state must demonstrate that research resulting from the contribution is made available to the state. * Sec. 6. AS 43.75.018 is amended by adding a new subsection to read: (h) As a condition of receiving a tax credit for a contribution for research under (a) of this section, a person engaged in a fisheries business must demonstrate that research resulting from the contribution is made available to the state. * Sec. 7. AS 43.77.045 is amended by adding a new subsection to read: 2024-05-01 House Journal Page 2585 (h) As a condition of receiving a tax credit for a contribution for research under (a) of this section, a person engaged in a floating fisheries business must demonstrate that research resulting from the contribution is made available to the state." Page 1, line 4: Delete "Section 1" Insert "Sec. 8" Renumber the following bill section accordingly. Representative Vance moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Hannan objected. Amendment No. 1 to Amendment No. 3 was offered by Representative Eastman: Page 1, line 6 of the amendment, following "is made available": Insert ", or will be made available," Page 1, line 10 of the amendment, following "is made available": Insert ", or will be made available," Page 1, line 14 of the amendment, following "is made available": Insert ", or will be made available," Page 1, line 18 of the amendment, following "is made available": Insert ", or will be made available," Page 1, line 22 of the amendment, following "is made available": Insert ", or will be made available," Page 2, line 3 of the amendment, following "is made available": Insert ", or will be made available," Page 2, line 7 of the amendment, following "is made available": Insert ", or will be made available," 2024-05-01 House Journal Page 2586 Representative Eastman moved and asked unanimous consent that Amendment No. 1 to Amendment No. 3 be adopted. There was objection. The question being: "Shall Amendment No. 1 to Amendment No. 3 be adopted?" The roll was taken with the following result: HB 144 Second Reading Amendment No. 1 to Amendment No. 3 YEAS: 25 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Armstrong, Carpenter, Carrick, Coulombe, Eastman, Gray, Groh, Himschoot, McKay, Mears, Ortiz, Prax, Rauscher, Ruffridge, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright Nays: Allard, Baker, Cronk, Dibert, Edgmon, Fields, Foster, Galvin, Hannan, C.Johnson, D.Johnson, Josephson, McCabe, McCormick, Mina And so, Amendment No. 1 to Amendment No. 3 was adopted. The question being: "Shall Amendment No. 3 as amended be adopted?" The roll was taken with the following result: HB 144 Second Reading Amendment No. 3 as amended YEAS: 25 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Armstrong, Baker, Carpenter, Coulombe, Cronk, Eastman, Galvin, Gray, Groh, C.Johnson, Josephson, McCabe, Mears, Prax, Rauscher, Ruffridge, Saddler, Shaw, Stapp, Sumner, Tilton, Tomaszewski, Vance, Wright Nays: Carrick, Dibert, Edgmon, Fields, Foster, Hannan, Himschoot, D.Johnson, McCormick, McKay, Mina, Ortiz, Schrage, Story, Stutes And so, Amendment No. 3 as amended was adopted. 2024-05-01 House Journal Page 2587 Amendment No. 4 was not offered. Representative Saddler moved and asked unanimous consent that HB 144 am be considered engrossed, advanced to third reading, and placed on final passage. There was objection. HB 144 am will advance to third reading on tomorrow's calendar.