03/27/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

        SB 223-TAX CRED: CONTR. TO HOMELESS SHELT/DETOX                                                                     
                                                                                                                                
4:05:08 PM                                                                                                                    
CHAIR  OLSON  announced the  consideration  of  SB 223,  "An  Act                                                               
relating  to  a   credit  against  the  net  income   tax  for  a                                                               
contribution made by a taxpayer  to a nonprofit organization that                                                               
provides an emergency shelter for  the homeless or a facility for                                                               
alcohol  or  drug detoxification."  He  stated  his intention  to                                                               
introduce a committee substitute (CS)  and set the bill aside for                                                               
further review.                                                                                                                 
                                                                                                                                
DAVID  SCOTT,   Aide,  Senate  Community  and   Regional  Affairs                                                               
Standing Committee  Alaska State  Legislature, identified  the CS                                                               
for SB  223 as version  D. It made  the following changes  to the                                                               
original bill:                                                                                                                  
                                                                                                                                
   1) Language on page 2, line [22], adds a five-year sunset.                                                                   
   2) Page 1, line 9, states that eligible organizations must be                                                                
     established before 1/1/2012. The intent of the bill is to                                                                  
     support existing nonprofits providing these services, not                                                                  
     to encourage the establishment of new nonprofits.                                                                          
   3) Page 2, line 1, subsection (b) the tax credit changes from                                                                
     a dollar-for-dollar match to 50 percent of the cash                                                                        
     contribution.                                                                                                              
   4) Procedural language was added on page 2, line 3, subsection                                                               
     (c) so the department could provide the taxpayer a                                                                         
     preliminary determination as to whether the contribution                                                                   
     qualifies for the tax credit.                                                                                              
                                                                                                                                
MR.  SCOTT noted  that he  distributed sections  of the  FY10 and                                                               
FY11 revenue  source book  regarding tax  credits offered  by the                                                               
state.                                                                                                                          
                                                                                                                                
4:07:39 PM                                                                                                                    
CHAIR  OLSON  asked  why the  dollar-for-dollar  tax  credit  was                                                               
changed to 50 percent of the contribution.                                                                                      
                                                                                                                                
MR.  SCOTT  answered  that  it  conformed  to  other  tax  credit                                                               
programs offered by the state.                                                                                                  
                                                                                                                                
CHAIR OLSON asked if interest by  the private sector would be the                                                               
same with the reduced credit.                                                                                                   
                                                                                                                                
MR. SCOTT  said he did  not have  that impression, but  only time                                                               
would tell if the bill were to become law.                                                                                      
                                                                                                                                
4:08:34 PM                                                                                                                    
CHAIR  OLSON  found no  further  questions  and  held SB  223  in                                                               
committee.