Fiscal Note
State of Alaska
Bill Version: HB 144
Fiscal Note Number: 1
(H) Publish Date: 5/3/2023
2023 Legislative Session
Identifier:HB144-DOR-TAX-04-03-23
Title: REPEAL EDUCATION TAX CREDITS SUNSET
Sponsor:RUFFRIDGE
Requester:House Education
Department:Department of Revenue
Appropriation:Taxation and Treasury
Allocation:Tax Division
OMB Component Number: 2476
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2024 Governor's
AppropriationFY2024 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2024 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
1004 Gen Fund (UGF) (1,600.0) (3,200.0) (3,200.0) (3,200.0) (3,200.0)
Total 0.0 0.0 (1,600.0) (3,200.0) (3,200.0) (3,200.0) (3,200.0)
Estimated SUPPLEMENTAL (FY2023) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2024) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account?No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency?No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Colleen M. Glover, Director Phone: (907)269-1033
Division: Tax Division Date: 04/03/2023
Approved By: Eric DeMoulin, Director Date: 04/14/23
Agency: Department of Revenue
Page 1 of 2Printed 5/3/2023 Control Code: ZcgEN HB 144
Analysis
(Revised 08/26/2022 OMB/LFD) Page 2 of 2
2023 LEGISLATIVE SESSION
STATE OF ALASKA BILL NO.
FISCAL NOTE ANALYSIS
Background
The education tax credit is a credit for qualifying contributions to Alaska universities and accredited nonprofit Alaska two‐
or four‐year colleges for facilities, direct instruction, research and educational support purposes; donations to a school
district or a state‐operated technical and training school for vocational education courses, programs and
facilities; and
donations for Alaska Native cultural or heritage programs for public school staff and students, and a facility in the state that
qualifies as a coastal ecosystem learning center under the Coastal American Partnership.
The credit is available to be claimed against insurance premiums tax, title insurance premiums tax, corporate
income tax,
oil and gas production tax, oil and gas property tax, mining license tax, fisheries business tax, and fishery resource landing
tax. The credit for any one taxpayer cannot exceed $1 million annually across all tax types. The credit is currently
scheduled to be repealed effective January 1, 2025.
The bill
repeals the sunset provisions.
Revenue Impact
The revenue impacts only include those eligible tax programs administered by the Department of Revenue (Department).
The bill's fiscal impacts is from eliminating the current repeal provisions beyond 2025. The revenue impact of eliminating
the sunset provisions assumes similar average usage to the past three years will
continue for the foreseeable future.
Implementation Cost
This legislation would require the Department to make minor changes to its Tax Revenue Management System ("TRMS").
Resources required to implement this bill would include staff time to updated tax forms, TRMS, and Revenue Online, and
other miscellaneous costs when applicable. These costs will
be absorbed by the Tax Division using existing resources. HB 144 - Fiscal Note 1
HB144-DOR-TAX-04-03-23 Page 2 of 2 Control Code: ZcgEN