How SB 92 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes an income tax for certain entities producing or transporting oil or gas in Alaska, specifically taxing income over $5 million at a rate of 9.4%.

• AS 43.20

  Sec. 43.20.019. Tax on income attributable to a qualified entity. (a) If a qualified entity has taxable income over $5,000,000 in a tax year, the qualified entity shall pay a tax of 9.4 percent on the taxable income over $5,000,000.

  This new section imposes a tax on entities with substantial income from oil or gas in Alaska.

• AS 43.20.030(a)

  If a taxpayer [CORPORATION], or a partnership that has a taxpayer [CORPORATION] as a partner, is required to make a return under the provisions of the Internal Revenue Code, the taxpayer [IT] shall file with the department, within 30 days after the federal return is required to be filed, a return setting out → If a taxpayer, or a partnership that has a taxpayer as a partner, is required to make a return under the provisions of the Internal Revenue Code, the taxpayer shall file with the department, within 30 days after the federal return is required to be filed, a return setting out

  This change eliminates the specific mention of 'corporation' and 'it', broadening the applicability of the filing requirement.

• AS 43.20.031(i)

  A taxpayer that [CORPORATION WHICH] is a member of a group of unitary corporations or entities that [WHICH] collectively has income from business activity taxable both inside and outside the state, or income from other sources both inside and outside the state, shall determine its income from sources in this state by use of the combined method of accounting. → A taxpayer that is a member of a group of unitary corporations or entities that collectively has income from business activity taxable both inside and outside the state, or income from other sources both inside and outside the state, shall determine its income from sources in this state by use of the combined method of accounting.

  This amendment simplifies the language regarding how taxpayers within a unitary group determine their taxable income.

• AS 43.20.031

  For purposes of calculating income under this chapter, a taxpayer may deduct from income a payment to the shareholder, owner, member, or partner of a qualified entity, as that term is defined in AS 43.20.019(e), if

  This addition allows certain payments to shareholders or members of qualified entities to be deducted from taxable income.

• Uncodified law of the State of Alaska

  APPLICABILITY. This Act applies to a qualified entity with taxable income over $5,000,000 for a tax year beginning on or after January 1, 2025.

  This section specifies the applicability of the new income tax starting from January 1, 2025.

• Uncodified law of the State of Alaska

  TRANSITION: PAYMENT OF TAX. A person subject to tax before the effective date of this Act under AS 43.20.019, added by sec. 1 of this Act, shall pay the balance of the tax due for a tax year ending before January 1, 2026, by January 1, 2026.

  This section outlines a transition period for the payment of taxes related to the new income tax provisions.

• Uncodified law of the State of Alaska

  RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in the regulation that the regulation applies retroactively to a specific date, a regulation adopted by the department to implement, interpret, make specific, or otherwise carry out this Act applies retroactively to that date.

  This section allows regulations implementing this Act to be applied retroactively if so specified.

• Uncodified law of the State of Alaska

  RETROACTIVITY. This Act is retroactive to January 1, 2025.

  This states that the new income tax law will have retroactive effects starting January 1, 2025.

• AS 01.10.070(c)

  This Act takes effect immediately under AS 01.10.070(c).

  This provision indicates that the law will take effect immediately upon passage.