04/13/2012 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 252(FIN)                                                                                                
                                                                                                                                
          "An Act exempting certain small businesses from                                                                       
          the corporate income tax; and providing for an                                                                        
          effective date."                                                                                                      
                                                                                                                                
10:06:31 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MIA COSTELLO,  testified that the legislation                                                                    
would exempt  certain small  qualifying businesses  from the                                                                    
states corporate  income tax until the  business reached $50                                                                    
million in  gross aggregate assets,  or after 10  years. She                                                                    
explained  that   the  definition  of  a   small  qualifying                                                                    
business could  found in  federal law.  She stated  that the                                                                    
hope was to attract businesses  that did not currently exist                                                                    
in  the  state.  The   businesses  would  eventually  become                                                                    
corporate tax payers.                                                                                                           
                                                                                                                                
10:07:32 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  asked  for   a  clarification  about  who                                                                    
qualified for the exemption.                                                                                                    
                                                                                                                                
Representative    Costello    responded   that    qualifying                                                                    
industries included:                                                                                                            
                                                                                                                                
   · Software development                                                                                                       
   · Bio-tech                                                                                                                   
   · Pharmaceuticals                                                                                                            
   · Tele-communications                                                                                                        
   · Super-conductors                                                                                                           
   · Business technologies and solutions                                                                                        
   · Media storage servers                                                                                                      
   · Video games                                                                                                                
                                                                                                                                
Co-Chair Stedman  understood that the legislation  was aimed                                                                    
at a targeted group.                                                                                                            
                                                                                                                                
Representative Costello replied in the affirmative.                                                                             
                                                                                                                                
10:08:09 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
10:08:39 AM                                                                                                                   
                                                                                                                                
TYLER   ARNOLD,   CEO,   SIMPLY   SOCIAL,   Anchorage   (via                                                                    
teleconference), testified  in support of HB  252. He shared                                                                    
that he was a 19  year-old entrepreneur raised in Anchorage.                                                                    
He opined  that the state  had one of the  highest corporate                                                                    
tax  rates in  the  country. He  felt  that the  legislation                                                                    
would   help    to   strengthen   his    business's   global                                                                    
competitiveness.                                                                                                                
                                                                                                                                
Co-Chair Stedman CLOSED public testimony.                                                                                       
                                                                                                                                
CSHB 252(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:10:58 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:12:15 AM                                                                                                                   
RECONVENED