HB0089D -1- SCS CSHB 89(HSS)
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SENATE CS FOR CS FOR HOUSE BILL NO. 89(HSS)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY THE SENATE HEALTH AND S OCIAL SERVICES COMMITTEE
Offered: 4/12/24
Referred: Finance
Sponsor(s): REPRESENTATIVES COULOMBE, Armstrong, Fields, Dibert, Story, McCormick, Schrage,
Galvin, Wright, Saddler, Josephson, Ortiz, Mina, Groh, Gray, Mears
A BILL
FOR AN ACT ENTITLED
"An Act relating to education tax credits for certain payments and contributions for 1
child care and child care facilities; relating to the insurance tax education credit, the 2
income tax education credit, the oil or gas producer education credit, the property tax 3
education credit, the mining business education credit, the fisheries business education 4
credit, and the fisheries resource landing tax education credit; renaming the day care 5
assistance program the child care assistance program; relating to the child care 6
assistance program and the child care grant program; providing for an effective date by 7
amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an 8
effective date." 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10
* Section 1. AS 21.96.070(a) is amended to read: 11
(a) A taxpayer is allowed a credit against the tax due under AS 21.09.210 or 12 33-LS0518\R
SCS CSHB 89(HSS) -2- HB0089D
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AS 21.66.110 for [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED] 1
(1) contributions of cash or equipment accepted for direct 2
instruction, research, and educational support purposes, including library and museum 3
acquisitions, and contributions to endowment, by an Alaska university foundation or 4
by a nonprofit, public or private, Alaska two-year or four-year college accredited by a 5
national or regional accreditation association; 6
(2) contributions of cash or equipment accepted for secondary 7
school level vocational education courses, programs, and facilities by a school district 8
in the state; 9
(3) contributions of cash or equipment accepted for vocational 10
education courses, programs, and facilities by a state-operated vocational technical 11
education and training school; 12
(4) contributions of cash or equipment accepted for a facility by a 13
nonprofit, public or private, Alaska two-year or four-year college accredited by a 14
national or regional accreditation association; 15
(5) contributions of cash or equipment accepted for Alaska Native 16
cultural or heritage programs and educational support, including mentoring and 17
tutoring, provided by a nonprofit agency for public school staff and for students who 18
are in grades kindergarten through 12 in the state; [AND] 19
(6) contributions of cash or equipment accepted for education, 20
research, rehabilitation, and facilities by an institution that is located in the state and 21
that qualifies as a coastal ecosystem learning center under the Coastal America 22
Partnership established by the federal government; 23
(7) expenditures made to operate a child care facility in the state 24
for the children of the taxpayer's employees; 25
(8) contributions of cash or equipment accepted by a child care 26
facility in the state operated by a nonprofit corporation and attended by one or 27
more children of the taxpayer's employees; and 28
(9) a payment to an employee of the taxpayer made by the 29
taxpayer for the purpose of offsetting the employee's child care costs incurred in 30
the state. 31 33-LS0518\R
HB0089D -3- SCS CSHB 89(HSS)
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* Sec. 2. AS 21.96.070(d) is amended to read: 1
(d) A contribution claimed as a credit under this section may not 2
(1) be the basis for a credit claimed under another provision of this 3
title; and 4
(2) when combined with contributions that are the basis for credits 5
taken during the taxpayer's tax year under AS 43.20.014, AS 43.55.019, 6
AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 7
amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 8
an affiliated group, then the total amount of credits may not exceed $3,000,000 9
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 10
meaning given in AS 43.20.145. 11
* Sec. 3. AS 21.96.070 is amended by adding a new subsection to read: 12
(g) Beginning January 1, 2030, and every five years thereafter, the Department 13
of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 14
of this section for inflation, using 100 percent of the change over the preceding five 15
calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 16
compiled by the Bureau of Labor Statistics, United States Department of Labor. 17
* Sec. 4. AS 43.20.014(a) is amended to read: 18
(a) A taxpayer is allowed a credit against the tax due under this chapter for 19
[CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTED FOR] 20
(1) contributions of cash or equipment accepted for direct 21
instruction, research, and educational support purposes, including library and museum 22
acquisitions, and contributions to endowment, by an Alaska university foundation, by 23
a nonprofit, public or private, Alaska two-year or four-year college accredited by a 24
national or regional accreditation association, or by a public or private nonprofit 25
elementary or secondary school in the state; 26
(2) contributions of cash or equipment accepted for secondary 27
school level vocational education courses, programs, and facilities by a school district 28
in the state; 29
(3) contributions of cash or equipment accepted for vocational 30
education courses, programs, equipment, and facilities by a state-operated vocational 31 33-LS0518\R
SCS CSHB 89(HSS) -4- HB0089D
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technical education and training school, a nonprofit regional training center recognized 1
by the Department of Labor and Workforce Development, and an apprenticeship 2
program in the state that is registered with the United States Department of Labor 3
under 29 U.S.C. 50 - 50b (National Apprenticeship Act); 4
(4) contributions of cash or equipment accepted for a facility by a 5
nonprofit, public or private, Alaska two-year or four-year college accredited by a 6
national or regional accreditation association or by a public or private nonprofit 7
elementary or secondary school in the state; 8
(5) contributions of cash or equipment accepted for Alaska Native 9
cultural or heritage programs and educational support, including mentoring and 10
tutoring, provided by a nonprofit agency for public school staff and for students who 11
are in grades kindergarten through 12 in the state; 12
(6) contributions of cash or equipment accepted for education, 13
research, rehabilitation, and facilities by an institution that is located in the state and 14
that qualifies as a coastal ecosystem learning center under the Coastal America 15
Partnership established by the federal government; 16
(7) contributions of cash or equipment accepted for the Alaska 17
higher education investment fund under AS 37.14.750; 18
(8) contributions of cash or equipment accepted for funding a 19
scholarship awarded by a nonprofit organization to a dual-credit student to defray the 20
cost of a dual-credit course, including the cost of 21
(A) tuition and textbooks; 22
(B) registration, course, and programmatic student fees; 23
(C) on-campus room and board at the postsecondary institution 24
in the state that provides the dual-credit course; 25
(D) transportation costs to and from a residential school 26
approved by the Department of Education and Early Development under 27
AS 14.16.200 or the postsecondary school in the state that provides the dual-28
credit course; and 29
(E) other related educational and programmatic costs; 30
(9) contributions of cash or equipment accepted for constructing, 31 33-LS0518\R
HB0089D -5- SCS CSHB 89(HSS)
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operating, or maintaining a residential housing facility by a residential school in the 1
state approved by the Department of Education and Early Development under 2
AS 14.16.200; 3
(10) contributions of cash or equipment accepted for childhood 4
early learning and development programs and educational support to childhood early 5
learning and development programs provided by a nonprofit corporation organized 6
under AS 10.20, a tribal entity, or a school district in the state, by the Department of 7
Education and Early Development, or through a state grant; 8
(11) contributions of cash or equipment accepted for science, 9
technology, engineering, and math programs provided by a nonprofit agency or a 10
school district for school staff and for students in grades kindergarten through 12 in 11
the state; [AND] 12
(12) contributions of cash or equipment accepted for the operation 13
of a nonprofit organization dedicated to providing educational opportunities that 14
promote the legacy of public service contributions to the state and perpetuate ongoing 15
educational programs that foster public service leadership for future generations of 16
residents of the state; 17
(13) expenditures made to operate a child care facility in the state 18
for the children of the taxpayer's employees; 19
(14) contributions of cash or equipment accepted by a child care 20
facility in the state operated by a nonprofit corporation and attended by one or 21
more children of the taxpayer's employees; and 22
(15) a payment to an employee of the taxpayer made by the 23
taxpayer for the purpose of offsetting the employee's child care costs incurred in 24
the state. 25
* Sec. 5. AS 43.20.014(d) is amended to read: 26
(d) A contribution claimed as a credit under this section may not 27
(1) be the basis for a credit claimed under another provision of this 28
title; 29
(2) also be allowed as a deduction under 26 U.S.C. 170 against the tax 30
imposed by this chapter; and 31 33-LS0518\R
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(3) when combined with contributions that are the basis for credits 1
taken during the taxpayer's tax year under AS 21.96.070, AS 43.55.019, 2
AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 3
amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 4
an affiliated group, then the total amount of credits may not exceed $3,000,000 5
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 6
meaning given in AS 43.20.145. 7
* Sec. 6. AS 43.20.014 is amended by adding a new subsection to read: 8
(h) Beginning January 1, 2030, and every five years thereafter, the Department 9
of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 10
of this section for inflation, using 100 percent of the change over the preceding five 11
calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 12
compiled by the Bureau of Labor Statistics, United States Department of Labor. 13
* Sec. 7. AS 43.55.019(a) is amended to read: 14
(a) A producer of oil or gas is allowed a credit against the tax levied by 15
AS 43.55.011(e) for [CONTRIBUTIONS OF CASH OR EQUIPMENT ACCEPTE D 16
FOR] 17
(1) contributions of cash or equipment accepted for direct 18
instruction, research, and educational support purposes, including library and museum 19
acquisitions, and contributions to endowment, by an Alaska university foundation or 20
by a nonprofit, public or private, Alaska two-year or four-year college accredited by a 21
national or regional accreditation association; 22
(2) contributions of cash or equipment accepted for secondary 23
school level vocational education courses, programs, and facilities by a school district 24
in the state; 25
(3) contributions of cash or equipment accepted for vocational 26
education courses, programs, equipment, and facilities by a state-operated vocational 27
technical education and training school, a nonprofit regional training center recognized 28
by the Department of Labor and Workforce Development, and an apprenticeship 29
program in the state that is registered with the United States Department of Labor 30
under 29 U.S.C. 50 - 50b (National Apprenticeship Act); 31 33-LS0518\R
HB0089D -7- SCS CSHB 89(HSS)
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(4) contributions of cash or equipment accepted for a facility by a 1
nonprofit, public or private, Alaska two-year or four-year college accredited by a 2
national or regional accreditation association; 3
(5) contributions of cash or equipment accepted for Alaska Native 4
cultural or heritage programs and educational support, including mentoring and 5
tutoring, provided by a nonprofit agency for public school staff and for students who 6
are in grades kindergarten through 12 in the state; 7
(6) contributions of cash or equipment accepted for education, 8
research, rehabilitation, and facilities by an institution that is located in the state and 9
that qualifies as a coastal ecosystem learning center under the Coastal America 10
Partnership established by the federal government; [AND] 11
(7) contributions of cash or equipment accepted for the Alaska 12
higher education investment fund under AS 37.14.750; 13
(8) expenditures made to operate a child care facility in the state 14
for the children of the producer's employees; 15
(9) contributions of cash or equipment accepted by a child care 16
facility in the state operated by a nonprofit corporation and attended by one or 17
more children of the producer's employees; and 18
(10) a payment to an employee of the producer made by the 19
producer for the purpose of offsetting the employee's child care costs incurred in 20
the state. 21
* Sec. 8. AS 43.55.019(d) is amended to read: 22
(d) A contribution claimed as a credit under this section may not 23
(1) be the basis for a credit claimed under another provision of this 24
title; and 25
(2) when combined with contributions that are the basis for credits 26
taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 27
AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 28
amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 29
an affiliated group, then the total amount of credits may not exceed $3,000,000 30
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 31 33-LS0518\R
SCS CSHB 89(HSS) -8- HB0089D
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meaning given in AS 43.20.145. 1
* Sec. 9. AS 43.55.019 is amended by adding a new subsection to read: 2
(i) Beginning January 1, 2030, and every five years thereafter, the Department 3
of Labor and Workforce Development shall adjust the limit under (d) of this section 4
for inflation, using 100 percent of the change over the preceding five calendar years in 5
the Consumer Price Index for all urban consumers for urban Alaska, compiled by the 6
Bureau of Labor Statistics, United States Department of Labor. 7
* Sec. 10. AS 43.56.018(a) is amended to read: 8
(a) The owner of property taxable under this chapter is allowed a credit 9
against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR 10
EQUIPMENT ACCEPTED FOR] 11
(1) contributions of cash or equipment accepted for direct 12
instruction, research, and educational support purposes, including library and museum 13
acquisitions, and contributions to endowment, by an Alaska university foundation or 14
by a nonprofit, public or private, Alaska two-year or four-year college accredited by a 15
national or regional accreditation association; 16
(2) contributions of cash or equipment accepted for secondary 17
school level vocational education courses, programs, and facilities by a school district 18
in the state; 19
(3) contributions of cash or equipment accepted for vocational 20
education courses, programs, and facilities by a state-operated vocational technical 21
education and training school; 22
(4) contributions of cash or equipment accepted for a facility by a 23
nonprofit, public or private, Alaska two-year or four-year college accredited by a 24
national or regional accreditation association; 25
(5) contributions of cash or equipment accepted for Alaska Native 26
cultural or heritage programs and educational support, including mentoring and 27
tutoring, provided by a nonprofit agency for public school staff and for students who 28
are in grades kindergarten through 12 in the state; 29
(6) contributions of cash or equipment accepted for education, 30
research, rehabilitation, and facilities by an institution that is located in the state and 31 33-LS0518\R
HB0089D -9- SCS CSHB 89(HSS)
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that qualifies as a coastal ecosystem learning center under the Coastal America 1
Partnership established by the federal government; [AND] 2
(7) contributions of cash or equipment accepted for the Alaska 3
higher education investment fund under AS 37.14.750; 4
(8) expenditures made to operate a child care facility in the state 5
for the children of the property owner's employees; 6
(9) contributions of cash or equipment accepted by a child care 7
facility in the state operated by a nonprofit corporation and attended by one or 8
more children of the property owner's employees; and 9
(10) a payment to an employee of the property owner made by the 10
owner for the purpose of offsetting the employee's child care costs incurred in the 11
state. 12
* Sec. 11. AS 43.56.018(d) is amended to read: 13
(d) A contribution claimed as a credit under this section may not 14
(1) be the basis for a credit claimed under another provision of this 15
title; and 16
(2) when combined with contributions that are the basis for credits 17
taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 18
AS 43.55.019, AS 43.65.018, AS 43.75.018, or AS 43.77.045, result in the total 19
amount of credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member of 20
an affiliated group, then the total amount of credits may not exceed $3,000,000 21
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 22
meaning given in AS 43.20.145. 23
* Sec. 12. AS 43.56.018 is amended by adding a new subsection to read: 24
(h) Beginning January 1, 2030, and every five years thereafter, the department 25
shall adjust the dollar limit on credits under (d) of this section for inflation, using 100 26
percent of the change over the preceding five calendar years in the Consumer Price 27
Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor 28
Statistics, United States Department of Labor. 29
* Sec. 13. AS 43.65.018(a) is amended to read: 30
(a) A person engaged in the business of mining in the state is allowed a credit 31 33-LS0518\R
SCS CSHB 89(HSS) -10- HB0089D
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against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR 1
EQUIPMENT ACCEPTED FOR] 2
(1) contributions of cash or equipment accepted for direct 3
instruction, research, and educational support purposes, including library and museum 4
acquisitions, and contributions to endowment, by an Alaska university foundation, by 5
a nonprofit, public or private, Alaska two-year or four-year college accredited by a 6
national or regional accreditation association, or by a public or private nonprofit 7
elementary or secondary school in the state; 8
(2) contributions of cash or equipment accepted for secondary 9
school level vocational education courses, programs, and facilities by a school district 10
in the state; 11
(3) contributions of cash or equipment accepted for vocational 12
education courses, programs, and facilities by a state- operated vocational technical 13
education and training school; 14
(4) contributions of cash or equipment accepted for a facility by a 15
nonprofit, public or private, Alaska two-year or four-year college accredited by a 16
national or regional accreditation association or by a public or private nonprofit 17
elementary or secondary school in the state; 18
(5) contributions of cash or equipment accepted for Alaska Native 19
cultural or heritage programs and educational support, including mentoring and 20
tutoring, provided by a nonprofit agency for public school staff and for students who 21
are in grades kindergarten through 12 in the state; 22
(6) contributions of cash or equipment accepted for education, 23
research, rehabilitation, and facilities by an institution that is located in the state and 24
that qualifies as a coastal ecosystem learning center under the Coastal America 25
Partnership established by the federal government; 26
(7) contributions of cash or equipment accepted for the Alaska 27
higher education investment fund under AS 37.14.750; 28
(8) contributions of cash or equipment accepted for funding a 29
scholarship awarded by a nonprofit organization to a dual-credit student to defray the 30
cost of a dual-credit course, including the cost of 31 33-LS0518\R
HB0089D -11- SCS CSHB 89(HSS)
New Text Underlined [DELETED TEXT BRACKETED]
(A) tuition and textbooks; 1
(B) registration, course, and programmatic student fees; 2
(C) on-campus room and board at the postsecondary institution 3
in the state that provides the dual-credit course; 4
(D) transportation costs to and from a residential school 5
approved by the Department of Education and Early Development under 6
AS 14.16.200 or the postsecondary school in the state that provides the dual-7
credit course; and 8
(E) other related educational and programmatic costs; 9
(9) contributions of cash or equipment accepted for constructing, 10
operating, or maintaining a residential housing facility by a residential school 11
approved by the Department of Education and Early Development under 12
AS 14.16.200; 13
(10) contributions of cash or equipment accepted for childhood 14
early learning and development programs and educational support to childhood early 15
learning and development programs provided by a nonprofit corporation organized 16
under AS 10.20, a tribal entity, or a school district in the state, by the Department of 17
Education and Early Development, or through a state grant; 18
(11) contributions of cash or equipment accepted for science, 19
technology, engineering, and math programs provided by a nonprofit agency or a 20
school district for school staff and for students in grades kindergarten through 12 in 21
the state; [AND] 22
(12) contributions of cash or equipment accepted for the operation 23
of a nonprofit organization dedicated to providing educational opportunities that 24
promote the legacy of public service contributions to the state and perpetuate ongoing 25
educational programs that foster public service leadership for future generations of 26
residents of the state; 27
(13) expenditures made to operate a child care facility in the state 28
for the children of the person's employees; 29
(14) contributions of cash or equipment accepted by a child care 30
facility in the state operated by a nonprofit corporation and attended by one or 31 33-LS0518\R
SCS CSHB 89(HSS) -12- HB0089D
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more children of the person's employees; and 1
(15) a payment to an employee of the person's business made by 2
the person for the purpose of offsetting the employee's child care costs incurred 3
in the state. 4
* Sec. 14. AS 43.65.018(d) is amended to read: 5
(d) A contribution claimed as a credit under this section may not 6
(1) be the basis for a credit claimed under another provision of this 7
title; and 8
(2) when combined with contributions that are the basis for credits 9
taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 10
AS 43.55.019, AS 43.56.018, AS 43.75.018, or AS 43.77.045, result in the total 11
amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member 12
of an affiliated group, then the total amount of credits may not exceed $3,000,000 13
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 14
meaning given in AS 43.20.145. 15
* Sec. 15. AS 43.65.018 is amended by adding a new subsection to read: 16
(h) Beginning January 1, 2030, and every five years thereafter, the department 17
shall adjust the dollar limit on credits under (d) of this section for inflation, using 100 18
percent of the change over the preceding five calendar years in the Consumer Price 19
Index for all urban consumers for urban Alaska, compiled by the Bureau of Labor 20
Statistics, United States Department of Labor. 21
* Sec. 16. AS 43.75.018(a) is amended to read: 22
(a) A person engaged in a fisheries business is allowed a credit against the tax 23
due under this chapter for [CONTRIBUTIONS OF CASH OR EQUIPMENT 24
ACCEPTED FOR] 25
(1) contributions of cash or equipment accepted for direct 26
instruction, research, and educational support purposes, including library and museum 27
acquisitions, and contributions to endowment, by an Alaska university foundation, by 28
a nonprofit, public or private, Alaska two-year or four-year college accredited by a 29
national or regional accreditation association, or by a public or private nonprofit 30
elementary or secondary school in the state; 31 33-LS0518\R
HB0089D -13- SCS CSHB 89(HSS)
New Text Underlined [DELETED TEXT BRACKETED]
(2) contributions of cash or equipment accepted for secondary 1
school level vocational education courses, programs, and facilities by a school district 2
in the state; 3
(3) contributions of cash or equipment accepted for vocational 4
education courses, programs, and facilities by a state-operated vocational technical 5
education and training school; 6
(4) contributions of cash or equipment accepted for a facility by a 7
nonprofit, public or private, Alaska two-year or four-year college accredited by a 8
national or regional accreditation association or by a public or private nonprofit 9
elementary or secondary school in the state; 10
(5) contributions of cash or equipment accepted for Alaska Native 11
cultural or heritage programs and educational support, including mentoring and 12
tutoring, provided by a nonprofit agency for public school staff and for students who 13
are in grades kindergarten through 12 in the state; 14
(6) contributions of cash or equipment accepted for education, 15
research, rehabilitation, and facilities by an institution that is located in the state and 16
that qualifies as a coastal ecosystem learning center under the Coastal America 17
Partnership established by the federal government; 18
(7) contributions of cash or equipment accepted for the Alaska 19
higher education investment fund under AS 37.14.750; 20
(8) contributions of cash or equipment accepted for funding a 21
scholarship awarded by a nonprofit organization to a dual-credit student to defray the 22
cost of a dual-credit course, including the cost of 23
(A) tuition and textbooks; 24
(B) registration, course, and programmatic student fees; 25
(C) on-campus room and board at the postsecondary institution 26
in the state that provides the dual-credit course; 27
(D) transportation costs to and from a residential school 28
approved by the Department of Education and Early Development under 29
AS 14.16.200 or the postsecondary school in the state that provides the dual-30
credit course; and 31 33-LS0518\R
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(E) other related educational and programmatic costs; 1
(9) contributions of cash or equipment accepted for constructing, 2
operating, or maintaining a residential housing facility by a residential school 3
approved by the Department of Education and Early Development under 4
AS 14.16.200; 5
(10) contributions of cash or equipment accepted for childhood 6
early learning and development programs and educational support to childhood early 7
learning and development programs provided by a nonprofit corporation organized 8
under AS 10.20, a tribal entity, or a school district in the state, by the Department of 9
Education and Early Development, or through a state grant; 10
(11) contributions of cash or equipment accepted for science, 11
technology, engineering, and math programs provided by a nonprofit agency or a 12
school district for school staff and for students in grades kindergarten through 12 in 13
the state; [AND] 14
(12) contributions of cash or equipment accepted for the operation 15
of a nonprofit organization dedicated to providing educational opportunities that 16
promote the legacy of public service contributions to the state and perpetuate ongoing 17
educational programs that foster public service leadership for future generations of 18
residents of the state; 19
(13) expenditures made to operate a child care facility in the state 20
for the children of the person's employees; 21
(14) contributions of cash or equipment accepted by a child care 22
facility in the state operated by a nonprofit corporation and attended by one or 23
more children of the person's employees; and 24
(15) a payment to an employee of the person's business made by 25
the person for the purpose of offsetting the employee's child care costs incurred 26
in the state. 27
* Sec. 17. AS 43.75.018(d) is amended to read: 28
(d) A contribution claimed as a credit under this section may not 29
(1) be the basis for a credit claimed under another provision of this 30
title; and 31 33-LS0518\R
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New Text Underlined [DELETED TEXT BRACKETED]
(2) when combined with contributions that are the basis for credits 1
taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 2
AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.77.045, result in the total 3
amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member 4
of an affiliated group, then the total amount of credits may not exceed $3,000,000 5
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 6
meaning given in AS 43.20.145. 7
* Sec. 18. AS 43.75.018 is amended by adding a new subsection to read: 8
(h) Beginning January 1, 2030, and every five years thereafter, the Department 9
of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 10
of this section for inflation, using 100 percent of the change over the preceding five 11
calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 12
compiled by the Bureau of Labor Statistics, United States Department of Labor. 13
* Sec. 19. AS 43.77.045(a) is amended to read: 14
(a) A person engaged in a floating fisheries business is allowed a credit 15
against the tax due under this chapter for [CONTRIBUTIONS OF CASH OR 16
EQUIPMENT ACCEPTED FOR] 17
(1) contributions of cash or equipment accepted for direct 18
instruction, research, and educational support purposes, including library and museum 19
acquisitions, and contributions to endowment, by an Alaska university foundation, by 20
a nonprofit, public or private, Alaska two-year or four-year college accredited by a 21
national or regional accreditation association, or by a public or private nonprofit 22
elementary or secondary school in the state; 23
(2) contributions of cash or equipment accepted for secondary 24
school level vocational education courses, programs, and facilities by a school district 25
in the state; 26
(3) contributions of cash or equipment accepted for vocational 27
education courses, programs, and facilities by a state-operated vocational technical 28
education and training school; 29
(4) contributions of cash or equipment accepted for a facility by a 30
nonprofit, public or private, Alaska two-year or four-year college accredited by a 31 33-LS0518\R
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national or regional accreditation association or by a public or private nonprofit 1
elementary or secondary school in the state; 2
(5) contributions of cash or equipment accepted for Alaska Native 3
cultural or heritage programs and educational support, including mentoring and 4
tutoring, provided by a nonprofit agency for public school staff and for students who 5
are in grades kindergarten through 12 in the state; 6
(6) contributions of cash or equipment accepted for education, 7
research, rehabilitation, and facilities by an institution that is located in the state and 8
that qualifies as a coastal ecosystem learning center under the Coastal America 9
Partnership established by the federal government; 10
(7) contributions of cash or equipment accepted for the Alaska 11
higher education investment fund under AS 37.14.750; 12
(8) contributions of cash or equipment accepted for funding a 13
scholarship awarded by a nonprofit organization to a dual-credit student to defray the 14
cost of a dual-credit course, including the cost of 15
(A) tuition and textbooks; 16
(B) registration, course, and programmatic student fees; 17
(C) on-campus room and board at the postsecondary institution 18
in the state that provides the dual-credit course; 19
(D) transportation costs to and from a residential school 20
approved by the Department of Education and Early Development under 21
AS 14.16.200 or the postsecondary school in the state that provides the dual-22
credit course; and 23
(E) other related educational and programmatic costs; 24
(9) contributions of cash or equipment accepted for constructing, 25
operating, or maintaining a residential housing facility by a residential school 26
approved by the Department of Education and Early Development under 27
AS 14.16.200; 28
(10) contributions of cash or equipment accepted for childhood 29
early learning and development programs and educational support to childhood early 30
learning and development programs provided by a nonprofit corporation organized 31 33-LS0518\R
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under AS 10.20, a tribal entity, or a school district in the state, by the Department of 1
Education and Early Development, or through a state grant; 2
(11) contributions of cash or equipment accepted for science, 3
technology, engineering, and math programs provided by a nonprofit agency or a 4
school district for school staff and for students in grades kindergarten through 12 in 5
the state; [AND] 6
(12) contributions of cash or equipment accepted for the operation 7
of a nonprofit organization dedicated to providing educational opportunities that 8
promote the legacy of public service contributions to the state and perpetuate ongoing 9
educational programs that foster public service leadership for future generations of 10
residents of the state; 11
(13) expenditures made to operate a child care facility in the state 12
for the children of the person's employees; 13
(14) contributions of cash or equipment accepted by a child care 14
facility in the state operated by a nonprofit corporation and attended by one or 15
more children of the person's employees; and 16
(15) a payment to an employee of the person's business made by 17
the person for the purpose of offsetting the employee's child care costs incurred 18
in the state. 19
* Sec. 20. AS 43.77.045(d) is amended to read: 20
(d) A contribution claimed as a credit under this section may not 21
(1) be the basis for a credit claimed under another provision of this 22
title; and 23
(2) when combined with contributions that are the basis for credits 24
taken during the taxpayer's tax year under AS 21.96.070, AS 43.20.014, 25
AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.75.018, result in the total 26
amount of the credits exceeding $3,000,000 [$1,000,000]; if the taxpayer is a member 27
of an affiliated group, then the total amount of credits may not exceed $3,000,000 28
[$1,000,000] for the affiliated group; in this paragraph, "affiliated group" has the 29
meaning given in AS 43.20.145. 30
* Sec. 21. AS 43.77.045 is amended by adding a new subsection to read: 31 33-LS0518\R
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(g) Beginning January 1, 2030, and every five years thereafter, the Department 1
of Labor and Workforce Development shall adjust the dollar limit on credits under (d) 2
of this section for inflation, using 100 percent of the change over the preceding five 3
calendar years in the Consumer Price Index for all urban consumers for urban Alaska, 4
compiled by the Bureau of Labor Statistics, United States Department of Labor. 5
* Sec. 22. AS 47.05.030(a) is amended to read: 6
(a) Except as provided in (b) and (c) of this section and for purposes directly 7
connected with the administration of general assistance, adult public assistance, the 8
child [DAY] care assistance program authorized under AS 47.25.001 - 47.25.095, or 9
the Alaska temporary assistance program, and in accordance with the regulations of 10
the department, a person may not solicit, disclose, receive, make use of, or authorize, 11
knowingly permit, participate in, or acquiesce in the use of, a list of or names of, or 12
information concerning, persons applying for or receiving the assistance directly or 13
indirectly derived from the records, papers, files, or communications of the department 14
or subdivisions or agencies of the department, or acquired in the course of the 15
performance of official duties. 16
* Sec. 23. AS 47.05.085(a) is amended to read: 17
(a) The commissioner or the commissioner's designee at the director level may 18
issue subpoenas to compel the production of books, papers, correspondence, 19
memoranda, and other records considered necessary as evidence in connection with an 20
investigation under or the administration of AS 47.07 (medical assistance), AS 47.08 21
(assistance for catastrophic illnesses and acute or chronic medical conditions), 22
AS 47.25 (child [DAY] care assistance, child care grants, general relief, adult public 23
assistance, and food stamps), and AS 47.27 (Alaska temporary assistance program). 24
* Sec. 24. AS 47.25.001(a) is amended to read: 25
(a) The department shall 26
(1) implement and administer a program to assist in providing child 27
[DAY] care for the children of low and moderate income families according to the 28
requirements of AS 47.25.001 - 47.25.095; 29
(2) establish standards of eligibility for child [DAY] care benefits; the 30
standards must provide that the maximum monthly household income for a 31 33-LS0518\R
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family to be eligible for the program is 105 percent of the median monthly 1
household income in the state, adjusted for family size, unless the family is 2
otherwise exempt from income eligibility requirements; 3
(3) contract for the care of children of eligible families; 4
(4) establish procedures to periodically review the needs of families 5
receiving child [DAY] care benefits; 6
(5) provide notification to the local government body of the request for 7
a contract with a child [DAY] care facility; 8
(6) establish an electronic application for assistance and allow an 9
applicant to submit an application in electronic format or in other formats required by 10
state and federal law; the electronic application must inform an applicant that a false 11
statement made on the application will be investigated and is punishable under 12
AS 11.56.210; 13
(7) establish a program to partner with private sector entities to 14
create incentives for employers to develop on-site or near-site child care. 15
* Sec. 25. AS 47.25.011 is amended to read: 16
Sec. 47.25.011. Administrative costs of program contractors. To defray 17
administrative expenses, a contractor under AS 47.25.001(b) may only retain $1,000 18
or 12 percent, whichever is greater, of the child [DAY] care assistance program funds 19
it receives from the department under the contract. 20
* Sec. 26. AS 47.25.021 is amended to read: 21
Sec. 47.25.021. Conditions of receipt of benefits. Benefits may be paid for 22
the care of children of a low or moderate income family only if a parent or guardian, 23
because of the child [DAY] care, is freed to work or to seek work or to attend school. 24
Benefits may not be paid for the care of children of a family where one parent or 25
guardian is not working, actively seeking work, or attending school and is physically 26
and mentally capable of caring for the children. 27
* Sec. 27. AS 47.25.031 is amended to read: 28
Sec. 47.25.031. Eligibility of families for benefits. The department shall 29
determine the eligibility of families for child [DAY] care benefits on the basis of the 30
following factors: 31 33-LS0518\R
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(1) income of the family including salary, alimony, child support, 1
retirement benefits, social security, and any other source of income; 2
(2) number of children in the family; 3
(3) whether there is one parent or guardian solely responsible for the 4
care of the family. 5
* Sec. 28. AS 47.25.041 is amended to read: 6
Sec. 47.25.041. Contributions by parent or guardian. The department shall 7
develop a sliding fee scale based on the factors listed in AS 47.25.031 for purposes of 8
determining the amount to be contributed by the parent or guardian for child care; the 9
amount may not exceed seven percent of the family monthly income. The 10
contribution of the parent or guardian shall be paid to the child [DAY] care facility. 11
* Sec. 29. AS 47.25.051 is amended to read: 12
Sec. 47.25.051. Placement; payment by state. (a) Parents or guardians shall 13
select the child [DAY] care facility for the care of their children. 14
(b) Benefits shall be paid by the department directly to the municipality or 15
organization contracting with the child [DAY] care facility. 16
* Sec. 30. AS 47.25.051 is amended by adding a new subsection to read: 17
(c) The department shall use a market rate study or a cost of care study to 18
establish a subsidy rate for each region served by the program established under 19
AS 47.25.001. The department shall use the subsidy rate to determine the amount of 20
benefits payable by the department under (b) of this section. 21
* Sec. 31. AS 47.25.071(b) is amended to read: 22
(b) To qualify for a grant under (a) or (d) of this section, the child care facility 23
must 24
(1) be currently licensed under AS 47.32 and applicable municipal 25
licensing requirements; 26
(2) participate in the child [DAY] care assistance program under 27
AS 47.25.001 - 47.25.095; [AND] 28
(3) provide care under a payment system as provided in (g) of this 29
section; and 30
(4) be designated as a quality child care facility by the department. 31 33-LS0518\R
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* Sec. 32. AS 47.25.071(g) is amended to read: 1
(g) A [EACH] child care facility receiving a grant under (a) or (d) of this 2
section shall 3
(1) assure that at least 15 percent or one of its child care spaces 4
receiving subsidy under this section, whichever is greater, will be made available, if 5
requested, to children eligible for child [DAY] care assistance under AS 47.25.001 - 6
47.25.095, whose parents or guardians wish to pay for care based on attendance only; 7
(2) give priority to children from low-income families when filling 8
available child care spaces in the facility. 9
* Sec. 33. AS 47.25.071(h) is amended to read: 10
(h) The department shall, in consultation with a child care resource and 11
referral agency in the state [INTERESTED CHILD CARE PROVIDERS] and 12
parents, adopt regulations to carry out the purposes of this section, including criteria 13
used to designate a child care facility as a quality child care facility under (b)(4) 14
of this section. 15
* Sec. 34. AS 47.25.071 is amended by adding new subsections to read: 16
(i) In addition to the grants provided in (a) and (d) of this section, the 17
department may, subject to appropriations for that purpose, provide grants to the 18
highest performing and highest quality child care facilities in the state. The department 19
may use quality recognition and improvement system metrics to determine the highest 20
performing and highest quality child care facilities in the state. To receive a grant 21
under this subsection, the child care facility must be currently licensed under AS 47.32 22
and applicable municipal licensing requirements. 23
(j) A child care facility receiving a grant under (a) or (d) of this section may 24
not deny a child acceptance to the facility based on disability or socioeconomic status. 25
* Sec. 35. AS 47.25.095(2) is amended to read: 26
(2) "child care facility" means an establishment licensed as a child care 27
facility under AS 47.32 [, INCLUDING DAY CARE CENTERS, FAMILY DAY 28
CARE HOMES, AND SCHOOLS FOR PRESCHOOL AGE CHILDREN,] that 29
provides care for children not related by blood, marriage, or legal adoption to the 30
owner, operator, or manager of the facility, or an establishment recognized by the 31 33-LS0518\R
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federal government for the care of children; 1
* Sec. 36. AS 47.25.095(3) is amended to read: 2
(3) "child [DAY] care" means the care, supervision, and guidance of a 3
child or children unaccompanied by a parent or legal guardian on a regular basis for 4
periods of less than 24 hours a day; 5
* Sec. 37. AS 47.25.071(c) and 47.25.095(4) are repealed. 6
* Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to 7
read: 8
CHILD CARE AND DEVELOPMENT FUND PLAN FEDERAL APPROVAL. To 9
the extent necessary to implement sec. 24 of this Act, the Department of Health shall amend 10
and submit for federal approval the state plan for the state's child care assistance program 11
under the federal child care and development fund program, consistent with AS 47.25.001(a), 12
as amended by sec. 24 of this Act. 13
* Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to 14
read: 15
CONDITIONAL EFFECT; NOTIFICATION. (a) This Act takes effect only if, on or 16
before January 1, 2026, the United States Department of Health and Human Services 17
(1) approves the amendment to the state plan for child care assistance program 18
under the federal child care and development fund program, consistent with AS 47.25.001(a), 19
as amended by sec. 24 of this Act; or 20
(2) determines that approval of the amendment to the state plan for the child 21
care assistance program is not necessary. 22
(b) The commissioner of health shall notify the revisor of statutes in writing within 30 23
days after the United States Department of Health and Human Services approves the 24
amendment to the state plan or determines that approval is not necessary under (a)(1) or (2) of 25
this section. 26
* Sec. 40. Section 37, ch. 61, SLA 2014, as amended by sec. 40, ch. 101, SLA 2018, is 27
amended to read: 28
Sec. 37. Sections 1, 2, and 21, ch. 61, SLA 2014, [OF THIS ACT] take effect 29
January 1, 2028 [2025]. 30
* Sec. 41. If sec. 24 of this Act takes effect, it takes effect on the day after the date the 31 33-LS0518\R
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United States Department of Health and Human Services approves the corresponding 1
amendment to the state plan or determines that approval is not necessary. 2
* Sec. 42. Except as provided in sec. 41 of this Act, this Act takes effect immediately under 3
AS 01.10.070(c). 4