Vote Smart's Synopsis:

Vote to pass a bill that establishes a state tax credit for research and development activities conducted in Alaska.

Highlights:

• Authorizes a taxpayer to apply 20 percent of expenditures for qualified research and development activities performed in the state of Alaska towards a state tax credit that exceeds the “base amount” but does not exceed $10 million (Sec 1).

• Defines “base amount” as the average of qualified research and development expenditures incurred in the state of Alaska for the 3 tax years preceding the taxable year in which the credit is claimed (Sec. 1).

• Specifies that qualified research and development is attributable to the state of Alaska only if the research and development activities are performed by employees within the state (Sec. 1).

• Authorizes the tax credit to be carried forward for up to 7 years if the tax credit exceeds the taxpayer’s tax liability after other tax credits are applied for the year in which the expenditure is incurred (Sec. 1).

• Prohibits an individual from claiming the credit if expenditures were already deducted in the calculation of the individual’s tax liability or if the expenditures were applied towards any other credit, including any federal credit (Sec. 1).

Full Bill Text