Alaska Administrative Code › Title 15 - Revenue › Chapter 20 - Alaska Net Income Tax › Article 2 - Corporate Net Income Tax; Administration and Credits › 15 AAC 20.135 - Alternative minimum tax and credit for prior year minimum tax

Current through May 31, 2024
(a) The Alaska
				alternative minimum tax is 18 percent of the applicable alternative minimum
				federal tax determined under (b) and (c) of this section and is in addition to,
				and independent of, the income tax imposed at the rates set out by
				AS
				43.20.011(e).
(b) The applicable alternative minimum
				federal tax is the taxpayer's actual federal alternative minimum tax or, if the
				taxpayer is taxable both inside and outside Alaska, the applicable alternative
				minimum federal tax is the actual federal alternative minimum tax of the
				taxpayer's unitary business multiplied by the taxpayer's apportionment
				factor.
(c) If a corporation
				included in the taxpayer's combined report is a member of a federal
				consolidated group that incurs the federal alternative minimum tax and that
				federal consolidated group includes one or more corporations that are not
				included in the combined report, the federal alternative minimum tax of the
				federal consolidated group must be allocated between members inside and outside
				the taxpayer's combined group. The allocation shall be made by multiplying the
				actual federal alternative minimum tax of the federal consolidated group by a
				fraction, the numerator of which is the pro forma alternative minimum tax of
				the corporations included in the taxpayer's combined group that are also
				members of the federal consolidated group, and the denominator of which is the
				sum of the pro forma alternative minimum tax for the corporations included in
				the taxpayer's combined group that are also members of the federal consolidated
				group plus the pro forma alternative minimum tax for the remaining corporations
				included in the consolidated federal return. For purposes of allocating the
				federal consolidated alternative minimum tax under this subsection, the pro
				forma alternative minimum tax of the corporations inside the taxpayer's
				combined group and of the corporations outside the taxpayer's combined group
				shall be computed on a consolidated basis for each group and may not be less
				than zero.
(d) For purposes of
				illustrating the method of determining the amount of a federal consolidated
				alternative minimum tax that is allocable to a unitary business under (c) of
				this section, the following example is offered:
EXAMPLE
Taxpayer A joins in the filing of a federal consolidated
				  return with corporations B, C, and D. The federal alternative minimum tax of
				  the consolidated group is $1,000. Corporation B is part of Taxpayer A's unitary
				  business and is included in the combined report of Taxpayer A. Corporations C
				  and D are not part of the unitary business conducted in this state and are not
				  included in the combined report of Taxpayer A. The pro forma federal
				  alternative minimum tax of Taxpayer A and corporation B is $480. The pro forma
				  federal alternative minimum tax of corporations C and D is $720. Taxpayer A's
				  apportionment factor is 50 percent. The applicable federal alternative minimum
				  tax allocable to the unitary business of Taxpayer A is $1,000 X
				  ($480/($480+$720)) or $400. Taxpayer A's Alaska alternative minimum tax is $36
				  ($400 X 50 percent X 18 percent).
(e)
				Except as provided in (g) of this section, a taxpayer's Alaska credit for prior
				year minimum tax is 18 percent of the taxpayer's actual federal credit for
				prior year minimum tax or, if the taxpayer is taxable both inside and outside
				Alaska, the credit is 18 percent of the actual federal credit of the taxpayer's
				unitary business multiplied by the taxpayer's Alaska apportionment
				factor.
(f) If a corporation
				included in the taxpayer's combined group is a member of a federal consolidated
				group that applied a federal credit for prior year minimum tax against
				consolidated federal income tax payable and the federal consolidated group also
				includes one or more corporations that are not included in the combined report
				of the taxpayer, the federal credit for prior year minimum tax of the federal
				consolidated group shall be allocated between the members inside and outside
				the taxpayer's combined group. The allocation shall be made by multiplying the
				federal credit for prior year minimum tax of the federal consolidated group by
				a fraction, the numerator of which is the pro forma credit for prior year
				minimum tax for the corporations included in the taxpayer's combined group that
				are also members of the federal consolidated group, and the denominator of
				which is the sum of the pro forma credit for prior year minimum tax for the
				corporations included in the taxpayer's combined group that are also members of
				the federal consolidated group plus the pro forma credit for prior year minimum
				tax for the remaining corporations included in the federal consolidated group.
				For the purpose of making a determination required by this subsection, a
				group's pro forma credit for prior year minimum tax is the credit allowable to
				that group determined on a consolidated basis and limited by Internal Revenue
				Code section 53(c)  (26
				U.S.C. 53(c)). The Alaska
				credit for prior year minimum tax is the resulting amount multiplied by the
				taxpayer's apportionment factor and then by 18 percent.
(g) The Alaska credit for prior year minimum
				tax is limited to the cumulative Alaska alternative minimum tax paid by the
				taxpayer for tax years after 1986 less the Alaska prior year minimum tax
				credits allowed in prior years.
Authority:
AS
					 43.05.080
AS
					 43.20.021