Alaska Administrative Code › Title 15 - Revenue › Chapter 20 - Alaska Net Income Tax › Article 2 - Corporate Net Income Tax; Administration and Credits › 15 AAC 20.145 - Credits adopted by reference

Current through May 31, 2024
(a) A credit may be
				attributed to Alaska only if the credit is claimed on a federal return. For
				purposes of this section, a federal credit is generated in the year it is
				originally claimed on a federal return. A federal credit need not be applied to
				reduce federal tax in the year generated for the credit to be attributed to
				Alaska. A federal credit claimed and disallowed, such as a credit disallowed by
				the Internal Revenue Service at audit, is not attributable to Alaska.
(b) For purposes of illustrating the
				attribution of a federal credit to Alaska under
				AS
				43.20.021(d) and (a) of this
				section, the following example is offered:
EXAMPLE
Taxpayer A does business in Alaska and does not conduct
				  business in any other state. Taxpayer A's business activities in 1998 generated
				  a federal research credit of $100. In 1998, Taxpayer A is subject to the
				  federal alternative minimum tax and cannot claim its federal credit of $100
				  against federal income tax in 1998. The federal research credit is attributable
				  to Alaska under
				  AS
				  43.20.021(d) and (a) of this
				  section. Taxpayer A's 1998 Alaska credit is $18, 18 percent of the federal
				  credit generated during 1998.
(c) The
				credit attributable to Alaska is the taxpayer's actual federal credit generated
				in the current year or, if the taxpayer is taxable both inside and outside
				Alaska, is the credit calculated by apportioning the actual federal credits
				generated in the current year by the taxpayer's unitary business using the
				apportionment factor applicable to the taxpayer under AS 43.20.
(d) For purposes of illustrating the
				attribution of federal credits of a unitary business in a combined report under
				(c) of this section, the following example is offered:
EXAMPLE
Taxpayer B is engaged in a unitary business, part of which is
				  conducted inside Alaska. Corporation C is part of the unitary business of
				  Taxpayer B and is included in the combined report of Taxpayer B. Corporation
				  C's business activities generated a federal research credit of $100. No other
				  federal credits were generated by the unitary business of Taxpayer B. Taxpayer
				  B has an Alaska apportionment factor of 50 percent. Taxpayer B's federal credit
				  attributable to Alaska is the $100 federal credit generated by its unitary
				  business multiplied by its apportionment factor of 50 percent, or $50. Taxpayer
				  B's Alaska research credit is $9, which is 18 percent of the $50 federal credit
				  attributed to Alaska.
(e) A taxpayer
				shall apply credits attributable to Alaska against the income tax set out in
				AS
				43.20.011(e) before any
				other credits. A taxpayer may not apply credits attributable to Alaska against
				Alaska alternative minimum tax or other taxes. A taxpayer shall carry back or
				carry forward unused credits attributable to Alaska as provided under the
				Internal Revenue Code.
(f) Federal
				credits allowed under the Internal Revenue Code that represent, in whole or in
				part, a refund of federal taxes are not attributable to Alaska. The part of a
				federal credit not subject to carryforward under the Internal Revenue Code that
				increases net minimum tax under Internal Revenue Code section 53 (26 U.S.C.
				53)  may not be attributed to Alaska as a
				credit under
				AS
				43.20.021(d).
Authority:
AS
					 43.05.080
AS
					 43.20.021