Legislature(2025 - 2026)
2026-03-30 House Journal
Full Journal pdf2026-03-30 House Journal Page 1994 HB 280 The following was read the second time: HOUSE BILL NO. 280 "An Act relating to the Multistate Tax Compact; relating to apportionment of income to the state; relating to highly digitized businesses subject to the Alaska Net Income Tax Act; and providing for an effective date." 2026-03-30 House Journal Page 1995 with the: Journal Page FIN RPT CS(FIN) NEW TITLE 5DP 1DNP 2NR 3AM 1972 FN1: (REV) 1972 Representative Kopp moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: CS FOR HOUSE BILL NO. 280(FIN) "An Act relating to the Multistate Tax Compact; relating to apportionment of income to the state, including the apportionment of income of broadcasters, financial institutions, and telecommunications service providers; and providing for an effective date." There being no objection, it was so ordered. Amendment No. 1 was offered by Representative Stapp: Page 1, line 1, following "Compact;" (title amendment): Insert "relating to the Alaska Net Income Tax Act and tax rate;" Page 20, following line 27: Insert a new bill section to read: "* Sec. 2. AS 43.20.011(e) is amended to read: (e) There is imposed for each taxable year on [UPON] the entire taxable income of every corporation derived from sources within the state a tax computed as follows: If the taxable income is: Then the tax is: Less than $99,000 [$25,000] zero [$25,000 BUT LESS THAN $49,000 2 PERCENT OF THE TAXABLE INCOME OVER $25,000 $49,000 BUT LESS THAN $74,000 $480 PLUS 3 PERCENT OF THE TAXABLE INCOME OVER $49,000 $74,000 BUT LESS THAN $99,000 2026-03-30 House Journal Page 1996 $1,230 PLUS 4 PERCENT OF THE TAXABLE INCOME OVER $74,000] $99,000 but less than $124,000 [$2,230 PLUS] 5 percent of the taxable income over $99,000 $124,000 but less than $148,000 $1,250 [$3,480] plus 6 percent of the taxable income over $124,000 $148,000 but less than $173,000 $2,690 [$4,920] plus 7 percent of the taxable income over $148,000 $173,000 but less than $198,000 $4,440 [$6,670] plus 8 percent of the taxable income over $173,000 $198,000 but less than $222,000 $6,440 [$8,670] plus 9 percent of the taxable income over $198,000 $222,000 or more $8,600 [$10,830] plus 9.4 percent of the taxable income over $222,000." Renumber the following bill sections accordingly. Representative Stapp moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Schrage objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSHB 280(FIN) Second Reading Amendment No. 1 YEAS: 19 NAYS: 19 EXCUSED: 2 ABSENT: 0 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Johnson, Kopp, McCabe, Moore, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Tomaszewski, Underwood, Vance 2026-03-30 House Journal Page 1997 Nays: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Josephson, Mears, Mina, Schrage, Story, Stutes Excused: Jimmie, D.Nelson And so, Amendment No. 1 was not adopted. Amendment No. 2 was offered by Representative Schwanke: Page 22, line 5: Delete "2027" Insert "2028" Page 22, line 6: Delete "2027" Insert "2028" Representative Schwanke moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Schrage objected. Representative McCabe, citing Section 101 of Mason's Manual, rose to a point of order. The Speaker stated that the point was well taken and cautioned the member to confine remarks to the amendment. Representative McCabe, citing Section 101 of Mason's Manual, rose to a point of order. The Speaker stated that the debate was germane and directed the member to continue. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 280(FIN) Second Reading Amendment No. 2 YEAS: 18 NAYS: 20 EXCUSED: 2 ABSENT: 0 2026-03-30 House Journal Page 1998 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Johnson, McCabe, Moore, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Stapp, Tomaszewski, Underwood, Vance Nays: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Josephson, Kopp, Mears, Mina, Schrage, Story, Stutes Excused: Jimmie, D.Nelson And so, Amendment No. 2 was not adopted. Amendment No. 3 was offered by Representative Gray: Page 22, following line 1: Insert a new section to read: * Sec. 2. AS 43.20 is amended by adding a new section to read: Sec. 43.20.151. Artificial intelligence businesses. (a) A taxpayer that is a large artificial intelligence business is subject to a tax on in-state gross receipts derived from artificial intelligence services, in addition to any tax imposed under this chapter. (b) Tax rates. The tax imposed under this section shall be applied on a progressive basis as follows: (1) 7.5 percent of in-state gross receipts between $1,000,000 and $5,000,000; (2) 15 percent of in-state gross receipts between $5,000,001 and $25,000,000; (3) 22.5 percent of in-state gross receipts exceeding $25,000,001. (c) Applicability thresholds. This section applies only to a taxpayer that (1) has annual global gross revenue exceeding $500,000,000; and (2) derives at least $1,000,000 in annual gross receipts from sources within the state. (d) Apportionment of in-state gross receipts. For purposes of this section, gross receipts are attributable to this state if (1) the service is delivered to a user located in the state; (2) the taxpayer uses data collected from users located in the state; or 2026-03-30 House Journal Page 1999 (3) the computation, data processing, or model training occurs on infrastructure located in the state. The department may adopt regulations to reasonably approximate in-state receipts when they cannot be precisely determined. (e) Definitions. In this section, (1) “artificial intelligence services” means the development, training, deployment, or operation of machine learning models, generative AI systems, or automated decision systems provided to users or customers; (2) “large artificial intelligence business” means a taxpayer meeting the thresholds in (c) of this section; (3) “in-state gross receipts” means revenue derived from users, customers, data, or infrastructure located in the state. (f) Regulations. The department may adopt regulations necessary to implement this section, including regulations to ensure compliance with constitutional requirements for interstate commerce and fair apportionment. Renumber the following bill sections accordingly. Representative Gray moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Stapp objected. Representative Hannan, citing Section 101 of Mason's Manual, rose to a point of order. The Speaker cautioned members to confine remarks to the amendment. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 280(FIN) Second Reading Amendment No. 3 YEAS: 4 NAYS: 34 EXCUSED: 2 ABSENT: 0 2026-03-30 House Journal Page 2000 Yeas: Carrick, Gray, Josephson, Mina Nays: Allard, Bynum, Costello, Coulombe, Dibert, Edgmon, Eischeid, Elam, Fields, Foster, Frier, Galvin, Hall, Hannan, Himschoot, Holland, Johnson, Kopp, McCabe, Mears, Moore, G.Nelson, Prax, Ruffridge, Saddler, Schrage, Schwanke, St. Clair, Stapp, Story, Stutes, Tomaszewski, Underwood, Vance Excused: Jimmie, D.Nelson And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representative Gray: Page 22, following line 1: Insert a new section to read: * Sec. 2. AS 43.20 is amended by adding a new section to read: Sec. 43.20.152. Restrictions on artificial intelligence use in nuclear activities. (a) Prohibition. A business may not, within the state, engage in conduct described in this section. A business may not develop, deploy, sell, license, direct, or cause an artificial intelligence system to: (1) design, assist in the design of, or simulate nuclear weapons; (2) operate, control, or materially influence nuclear weapons systems or nuclear command and control systems; (3) access, manage, generate, or transmit nuclear launch codes or nuclear command authorization systems; or (4) operate or control critical safety systems of a nuclear power facility. An artificial intelligence system may not autonomously or semi- autonomously perform any activity described in (1) – (4) of this subsection. (b) Responsibility and liability. A person that develops, owns, deploys, or controls an artificial intelligence system is strictly liable for violations of this section caused by that system, whether the violation is intentional, knowing, reckless, or the result of autonomous or semi-autonomous system behavior. (c) Scope. This section applies to: (1) conduct occurring within the state; and (2) artificial intelligence systems deployed on infrastructure located within the state, regardless of where the operator is 2026-03-30 House Journal Page 2001 located. (d) Exceptions. This section does not apply to: (1) activities conducted directly by the federal government or under a valid federal contract, to the extent that federal law preempts state regulation; (2) academic or scientific research that does not involve operational deployment or real-world control of nuclear systems; (3) cybersecurity, safety testing, or defensive analysis intended to identify or mitigate vulnerabilities in nuclear-related systems, if conducted in compliance with applicable federal law. (e) Definitions. In this section, (1) “artificial intelligence system” means a machine-based system that can, for a given set of objectives, generate outputs such as predictions, recommendations, or decisions influencing real or virtual environments, including systems capable of autonomous or semi-autonomous action; (2) “autonomously or semi-autonomously” means operating with limited or no real-time human intervention; (3) “nuclear weapons” includes any device designed to release energy from nuclear fission or fusion for military purposes; (4) “nuclear command and control system” means any system used to authorize, direct, or execute the use of nuclear weapons; (5) “nuclear power facility” means a facility that generates electricity through nuclear fission and includes associated safety and control systems. (f) Enforcement; penalties. (1) The attorney general may bring a civil action to enforce this section. (2) A person who violates this section, including through the actions of an artificial intelligence system, is subject to: (A) a civil penalty of not more than $10,000,000 for each violation; and (B) injunctive relief to prevent ongoing or imminent violations. (3) Each day during which a prohibited act occurs or continues constitutes a separate and distinct violation for purposes of assessing civil penalties under this subsection. (g) Regulations. The Department of Law may adopt regulations necessary to implement and enforce this section. Renumber the following bill sections accordingly. 2026-03-30 House Journal Page 2002 Representative Gray moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Stapp objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 280(FIN) Second Reading Amendment No. 4 YEAS: 1 NAYS: 37 EXCUSED: 2 ABSENT: 0 Yeas: Gray Nays: Allard, Bynum, Carrick, Costello, Coulombe, Dibert, Edgmon, Eischeid, Elam, Fields, Foster, Frier, Galvin, Hall, Hannan, Himschoot, Holland, Johnson, Josephson, Kopp, McCabe, Mears, Mina, Moore, G.Nelson, Prax, Ruffridge, Saddler, Schrage, Schwanke, St. Clair, Stapp, Story, Stutes, Tomaszewski, Underwood, Vance Excused: Jimmie, D.Nelson And so, Amendment No. 4 was not adopted. Representative Kopp moved and asked unanimous consent that CSHB 280(FIN) be considered engrossed, advanced to third reading, and placed on final passage. There was objection. CSHB 280(FIN) will advance to third reading on the April 1 calendar.