SB 120-EXTEND EDUCATION TAX CREDITS  4:18:55 PM CHAIR TOBIN announced the consideration of SENATE BILL NO. 120 "An Act extending the education tax credits; providing for an effective date by amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an effective date." CHAIR TOBIN noted that this was the second hearing and there was a committee substitute (CS) for the committee to consider. 4:19:10 PM SENATOR GRAY-JACKSON moved to adopt the committee substitute (CS) for SB 120, work order 33-LS0650\B, as the working document. 4:19:21 PM CHAIR TOBIN objected for the purpose of hearing Mr. Mason review the summary of changes between version A and version B of SB 120. 4:19:30 PM MICHAEL MASON, Staff, Senator Löki Tobin, Alaska State Legislature, Juneau, Alaska, reviewed the following summary of changes from version A to version B of SB 120: Summary of Changes: Version A to Version B  Section 1 Amends AS 21.96.070(a), which is the statute that governs the insurance tax credit, to add the word "for" to the end of the sentence. This addition was recommended by Legislative Legal to clarify that the tax credits are allowed for contributions accepted by the entities identified in subsections 1 through 7. Version B adds a new subsection 7 stipulating that contributions subject to the education tax credit can be used for "the operation of a nonprofit organization dedicated to promoting statewide academic achievement, including for student scholarships, in an interdisciplinary curriculum in the subject areas of economics, science, social science, literature, music, art, math, writing, speech and interview skills. Section 4 Amends AS 43.20.014(a), which is the statute that governs the income tax education credit, to add a new subsection 13 that includes language identical to the new subsection 7 in Section 1 allowing contributions subject to the education tax credit to be used by the specified nonprofit organizations. Section 7 Amends AS 43.55.019(a), which is the statute governing the oil or gas producer education credit, with the identical language allowing contributions subject to the education tax credit to be used by the specified nonprofit organizations. 2 Section 10 Amends AS 43.56.018(a), which is the statute governing the property tax education credit, with the identical language related to nonprofit organizations inserted into earlier sections. Section 13 Amends AS 43.56.018(a), which is the statute governing mining business education credits, to insert a new subsection 13 that includes identical language allowing nonprofit organizations to benefit from donations through the education tax credit program. Section 16 Amends AS 43.75.018(a), which is the statute governing fisheries business education credits, to add a new subsection 13 with identical language authorizing contributions to the specified nonprofit organizations. Section 19 Amends AS 43.77.045(a), which is the fisheries resource landing tax education credits, to add a new subsection 13 with the identical language related to nonprofit organizations inserted into the earlier sections of version B of Senate Bill 120. 4:21:30 PM CHAIR TOBIN asked why the new subsection (a)(7) was added in Section 1. MR. MASON explained that some entities want to take advantage of the education tax credit but are not explicitly authorized to do so. Subsection (a)(7) makes it possible for additional entities, such as the Alaska Academic Decathlon, to receive contributions through the education tax credit and the contributing entity can take the tax credit. He deferred further details to Senator Kiehl. 4:22:41 PM SENATOR KIEHL responded that the CS adds the Alaska Academic Decathlon and many other excellent organizations to the significant list of entities that can be supported with education tax credits. MR. MASON confirmed that corporations and other entities would like to support the Alaska Academic Decathlon and other programs, but are wary of becoming involved when those entities aren't spelled out in statute. 4:24:31 PM CHAIR TOBIN removed her objection. She found no further objection and version B of SB 120 was adopted. 4:25:00 PM CHAIR TOBIN found no further questions or comments and solicited a motion. 4:25:01 PM SENATOR GRAY-JACKSON moved to report the CS for SB 120, work order 33-LS0650\B, from committee with individual recommendations and attached fiscal note(s). 4:25:14 PM CHAIR TOBIN found no objection and CSSB 120(EDC) was reported from the Senate Education Standing Committee.