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| 2 | | - | HB0144b -1- HB 144 am |
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| 3 | | - | New Text Underlined [DELETED TEXT BRACKETED] |
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| 5 | | - | 33-LS0654\A.A |
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| 11 | | - | HOUSE BILL NO. 144 am |
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| 13 | | - | IN THE LEGISLATURE OF THE STATE OF ALASKA |
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| 14 | | - | |
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| 15 | | - | THIRTY-THIRD LEGISLATURE - FIRST SESSION |
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| 16 | | - | |
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| 17 | | - | BY REPRESENTATIVES RUFFRIDGE, Prax |
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| 18 | | - | |
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| 19 | | - | Amended: 5/1/24 |
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| 20 | | - | Introduced: 3/29/23 |
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| 21 | | - | |
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| 22 | | - | |
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| 23 | | - | A BILL |
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| 24 | | - | |
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| 25 | | - | FOR AN ACT ENTITLED |
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| 26 | | - | |
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| 27 | | - | "An Act relating to education tax credits; and providing for an effective date by 1 |
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| 28 | | - | repealing the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014." 2 |
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| 29 | | - | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3 |
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| 30 | | - | * Section 1. AS 21.96.070 is amended by adding a new subsection to read: 4 |
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| 31 | | - | (g) As a condition of receiving a tax credit for a contribution for research 5 |
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| 32 | | - | under (a) of this section, a taxpayer must demonstrate that research resulting from the 6 |
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| 33 | | - | contribution, or will be made available, to the state. 7 |
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| 34 | | - | * Sec. 2. AS 43.20.014 is amended by adding a new subsection to read: 8 |
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| 35 | | - | (h) As a condition of receiving a tax credit for a contribution for research 9 |
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| 36 | | - | under (a) of this section, a taxpayer must demonstrate that research resulting from the 10 |
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| 37 | | - | contribution, or will be made available, to the state. 11 |
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| 38 | | - | * Sec. 3. AS 43.55.019 is amended by adding a new subsection to read: 12 |
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| 39 | | - | (i) As a condition of receiving a tax credit for a contribution for research under 13 |
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| 40 | | - | (a) of this section, a producer must demonstrate that research resulting from the 14 33-LS0654\A.A |
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| 41 | | - | HB 144 am -2- HB0144b |
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| 42 | | - | New Text Underlined [DELETED TEXT BRACKETED] |
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| 43 | | - | |
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| 44 | | - | contribution, or will be made available, to the state. 1 |
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| 45 | | - | * Sec. 4. AS 43.56.018 is amended by adding a new subsection to read: 2 |
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| 46 | | - | (h) As a condition of receiving a tax credit for a contribution for research 3 |
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| 47 | | - | under (a) of this section, an owner of property taxable under this chapter must 4 |
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| 48 | | - | demonstrate that research resulting from the contribution, or will be made available, to 5 |
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| 49 | | - | the state. 6 |
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| 50 | | - | * Sec. 5. AS 43.65.018 is amended by adding a new subsection to read: 7 |
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| 51 | | - | (h) As a condition of receiving a tax credit for a contribution for research 8 |
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| 52 | | - | under (a) of this section, a person engaged in the business of mining in the state must 9 |
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| 53 | | - | demonstrate that research resulting from the contribution, or will be made available, to 10 |
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| 54 | | - | the state. 11 |
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| 55 | | - | * Sec. 6. AS 43.75.018 is amended by adding a new subsection to read: 12 |
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| 56 | | - | (h) As a condition of receiving a tax credit for a contribution for research 13 |
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| 57 | | - | under (a) of this section, a person engaged in a fisheries business must demonstrate 14 |
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| 58 | | - | that research resulting from the contribution, or will be made available, to the state. 15 |
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| 59 | | - | * Sec. 7. AS 43.77.045 is amended by adding a new subsection to read: 16 |
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| 60 | | - | (h) As a condition of receiving a tax credit for a contribution for research 17 |
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| 61 | | - | under (a) of this section, a person engaged in a floating fisheries business must 18 |
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| 62 | | - | demonstrate that research resulting from the contribution, or will be made available, to 19 |
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| 63 | | - | the state. 20 |
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| 64 | | - | * Sec. 8. Sections 1, 2, and 21, ch. 61, SLA 2014, and sec. 38(b), ch. 101, SLA 2018, are 21 |
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| 65 | | - | repealed. 22 |
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| 66 | | - | * Sec. 9. Section 37, ch. 61, SLA 2014, and sec. 40, ch. 101, SLA 2018, are repealed. 23 |
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| 1 | + | Fiscal Note |
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| 2 | + | State of Alaska |
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| 3 | + | Bill Version: HB 144 |
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| 4 | + | Fiscal Note Number: 1 |
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| 5 | + | (H) Publish Date: 5/3/2023 |
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| 6 | + | 2023 Legislative Session |
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| 7 | + | Identifier:HB144-DOR-TAX-04-03-23 |
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| 8 | + | Title: REPEAL EDUCATION TAX CREDITS SUNSET |
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| 9 | + | Sponsor:RUFFRIDGE |
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| 10 | + | Requester:House Education |
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| 11 | + | Department:Department of Revenue |
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| 12 | + | Appropriation:Taxation and Treasury |
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| 13 | + | Allocation:Tax Division |
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| 14 | + | OMB Component Number: 2476 |
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| 15 | + | Expenditures/Revenues |
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| 16 | + | Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars) |
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| 17 | + | Included in |
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| 18 | + | FY2024 Governor's |
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| 19 | + | AppropriationFY2024 Out-Year Cost Estimates |
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| 20 | + | Requested Request |
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| 21 | + | OPERATING EXPENDITURES FY 2024 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 |
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| 22 | + | Personal Services |
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| 23 | + | Travel |
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| 24 | + | Services |
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| 25 | + | Commodities |
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| 26 | + | Capital Outlay |
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| 27 | + | Grants & Benefits |
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| 28 | + | Miscellaneous |
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| 29 | + | Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0 |
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| 30 | + | Fund Source (Operating Only) |
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| 31 | + | None |
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| 32 | + | Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0 |
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| 33 | + | Positions |
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| 34 | + | Full-time |
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| 35 | + | Part-time |
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| 36 | + | Temporary |
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| 37 | + | Change in Revenues |
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| 38 | + | 1004 Gen Fund (UGF) (1,600.0) (3,200.0) (3,200.0) (3,200.0) (3,200.0) |
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| 39 | + | Total 0.0 0.0 (1,600.0) (3,200.0) (3,200.0) (3,200.0) (3,200.0) |
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| 40 | + | Estimated SUPPLEMENTAL (FY2023) cost: 0.0 (separate supplemental appropriation required) |
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| 41 | + | Estimated CAPITAL (FY2024) cost: 0.0 (separate capital appropriation required) |
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| 42 | + | Does the bill create or modify a new fund or account?No |
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| 43 | + | (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section) |
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| 44 | + | ASSOCIATED REGULATIONS |
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| 45 | + | Does the bill direct, or will the bill result in, regulation changes adopted by your agency?No |
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| 46 | + | If yes, by what date are the regulations to be adopted, amended or repealed? N/A |
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| 47 | + | Why this fiscal note differs from previous version/comments: |
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| 48 | + | Not applicable, initial version. |
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| 49 | + | Prepared By: Colleen M. Glover, Director Phone: (907)269-1033 |
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| 50 | + | Division: Tax Division Date: 04/03/2023 |
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| 51 | + | Approved By: Eric DeMoulin, Director Date: 04/14/23 |
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| 52 | + | Agency: Department of Revenue |
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| 53 | + | Page 1 of 2Printed 5/3/2023 Control Code: ZcgEN HB 144 |
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| 54 | + | Analysis |
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| 55 | + | (Revised 08/26/2022 OMB/LFD) Page 2 of 2 |
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| 56 | + | 2023 LEGISLATIVE SESSION |
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| 57 | + | STATE OF ALASKA BILL NO. |
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| 58 | + | FISCAL NOTE ANALYSIS |
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| 59 | + | Background |
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| 60 | + | The education tax credit is a credit for qualifying contributions to Alaska universities and accredited nonprofit Alaska two‐ |
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| 61 | + | or four‐year colleges for facilities, direct instruction, research and educational support purposes; donations to a school |
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| 62 | + | district or a state‐operated technical and training school for vocational education courses, programs and |
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| 63 | + | facilities; and |
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| 64 | + | donations for Alaska Native cultural or heritage programs for public school staff and students, and a facility in the state that |
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| 65 | + | qualifies as a coastal ecosystem learning center under the Coastal American Partnership. |
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| 66 | + | The credit is available to be claimed against insurance premiums tax, title insurance premiums tax, corporate |
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| 67 | + | income tax, |
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| 68 | + | oil and gas production tax, oil and gas property tax, mining license tax, fisheries business tax, and fishery resource landing |
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| 69 | + | tax. The credit for any one taxpayer cannot exceed $1 million annually across all tax types. The credit is currently |
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| 70 | + | scheduled to be repealed effective January 1, 2025. |
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| 71 | + | The bill |
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| 72 | + | repeals the sunset provisions. |
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| 73 | + | Revenue Impact |
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| 74 | + | The revenue impacts only include those eligible tax programs administered by the Department of Revenue (Department). |
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| 75 | + | The bill's fiscal impacts is from eliminating the current repeal provisions beyond 2025. The revenue impact of eliminating |
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| 76 | + | the sunset provisions assumes similar average usage to the past three years will |
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| 77 | + | continue for the foreseeable future. |
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| 78 | + | Implementation Cost |
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| 79 | + | This legislation would require the Department to make minor changes to its Tax Revenue Management System ("TRMS"). |
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| 80 | + | Resources required to implement this bill would include staff time to updated tax forms, TRMS, and Revenue Online, and |
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| 81 | + | other miscellaneous costs when applicable. These costs will |
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| 82 | + | be absorbed by the Tax Division using existing resources. HB 144 - Fiscal Note 1 |
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| 83 | + | HB144-DOR-TAX-04-03-23 Page 2 of 2 Control Code: ZcgEN |
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