HB0113a -1- HB 113
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HOUSE BILL NO. 113
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Introduced: 2/24/25
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to a tax exemption for qualified small businesses; and providing for an 1
effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 43.20.012(a) is amended to read: 4
(a) The tax imposed by this chapter does not apply to 5
(1) an individual; 6
(2) a fiduciary; 7
(3) the income received by a regional association qualified under 8
AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 9
from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery 10
fishery under AS 16.10.455; [OR] 11
(4) the income received by a nonprofit corporation holding a permit 12
under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from a cost 13
recovery fishery under AS 16.12.090; or
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HB 113 -2- HB0113a
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(5) an Alaska corporation that is a qualified small business and 1
that meets the active business requirements in 26 U.S.C. 1202(e), as that 2
subsection read on January 1, 2012. 3
* Sec. 2. AS 43.20.012 is amended by adding new subsections to read: 4
(e) For the purposes of (a)(5) of this section, 5
(1) whether a corporation qualifies under (a)(5) of this section shall be 6
determined on the first day of the tax year for which the corporation claims it qualifies 7
under (a)(5) of this section; 8
(2) all corporations that are members of the same parent-subsidiary 9
controlled group shall be treated as one corporation. 10
(f) In this section, 11
(1) "Alaska corporation" means a corporation that has been 12
incorporated in the state or is authorized to do business in the state; 13
(2) "parent-subsidiary controlled group" has the meaning given in 26 14
U.S.C. 1202, as that section read on January 1, 2012; 15
(3) "qualified small business" has the meaning given in 26 U.S.C. 16
1202, as that section read on January 1, 2012, and does not include a construction, 17
transportation, utility, or fisheries business. 18
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 19
read: 20
APPLICABILITY. AS 43.20.012(a), as amended by sec. 1 of this Act, and 21
AS 43.20.012(e) and (f), enacted by sec. 2 of this Act, apply to the tax year of a corporation 22
beginning on or after the effective date of this Act. 23
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 24