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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 7                                                                                                           
01 Relating to the computation of the tax on the taxable income of a corporation derived from                              
02 sources within the state; relating to the ineligibility and eligibility of certain productions to                       
03 receive a film production tax credit; and providing for an effective date.                                              
04                           _______________                                                                               
05    * Section 1. AS 43.20.011(e) is amended to read:                                                                   
06            (e) There is imposed for each taxable year upon the entire taxable income of                                 
07       every corporation derived from sources within the state a tax computed as follows:                                
08       If the taxable income is:       Then the tax is:                                                                  
09       Less than $25,000 [$10,000]     zero [1 PERCENT OF THE                                                    
10                                          TAXABLE INCOME]                                                                
11       $25,000 [$10,000] but less than  [$100 PLUS] 2 percent of the                                                 
12          $49,000 [$20,000]                taxable income over $25,000                                           
13                                          [$10,000]                                                                      
01       $49,000 [$20,000] but less than  $480 [$300] plus 3 percent of the                                        
02          $74,000 [$30,000]                taxable income over $49,000                                           
03                                          [$20,000]                                                                      
04       $74,000 [$30,000] but less than  $1,230 [$600] plus 4 percent of the                                      
05          $99,000 [$40,000]               taxable income over $74,000                                            
06                                          [$30,000]                                                                      
07       $99,000 [$40,000] but less than  $2,230 [$1,000] plus 5 percent of the                                    
08          $124,000 [$50,000]              taxable income over $99,000                                            
09                                          [$40,000]                                                                      
10       $124,000 [$50,000] but less than  $3,480 [$1,500] plus 6 percent of the                                   
11          $148,000 [$60,000]              taxable income over $124,000                                           
12                                          [$50,000]                                                                      
13       $148,000 [$60,000] but less than  $4,920 [$2,100] plus 7 percent of the                                   
14          $173,000 [$70,000]              taxable income over $148,000                                           
15                                          [$60,000]                                                                      
16       $173,000 [$70,000] but less than  $6,670 [$2,800] plus 8 percent of the                                   
17          $198,000 [$80,000]              taxable income over $173,000                                           
18                                          [$70,000]                                                                      
19       $198,000 [$80,000] but less than  $8,670 [$3,600] plus 9 percent of the                                   
20          $222,000 [$90,000]              taxable income over $198,000                                           
21                                          [$80,000]                                                                      
22       $222,000 [$90,000] or more      $10,830 [$4,500] plus 9.4 percent of                                      
23                                          the taxable income over $222,000                                           
24                                          [$90,000].                                                                     
25    * Sec. 2. AS 44.25.115, as enacted by sec. 28, ch. 51, SLA 2012, is amended by adding a                            
26 new subsection to read:                                                                                                 
27            (c)  The following productions are not eligible, regardless of the production                                
28       costs:                                                                                                            
29                 (1)  news, weather, or current events programming;                                                      
30                 (2)  a production produced primarily for industrial, corporate, or                                      
31       institutional purposes, and for internal use;                                                                     
01                 (3)  an advertisement, infomercial, or any other production that solicits                               
02       funds, except for a commercial television advertisement produced for national                                     
03       distribution;                                                                                                     
04                 (4)  a political advertisement; or                                                                      
05                 (5)  a production that is determined by the film office to contain                                      
06       sexually explicit conduct as defined in 18 U.S.C. 2256.                                                           
07    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
08 read:                                                                                                                   
09       APPLICABILITY. AS 43.20.011(e), as amended by sec. 1 of this Act, applies to the                                  
10 taxable income of a corporation derived from sources within the state during a taxable year                             
11 that begins on or after the effective date of sec. 1 of this Act.                                                       
12    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
13 read:                                                                                                                   
14       TRANSITION. Subject to AS 43.98.030(f), as that subsection read on June 30, 2013,                                 
15 secs. 30 and 31, ch. 51, SLA 2012, do not prohibit the film office from determining a film                              
16 production's qualified expenditures, awarding a tax credit, or reviewing a tax credit for a                             
17 production that has received a notice of qualification under former AS 44.33.234 before                                 
18 July 1, 2013, or the Department of Revenue from providing a transferable film production tax                            
19 credit to a producer under former AS 43.98.030, by applying the former provisions repealed                              
20 by secs. 30 and 31, ch. 51, SLA 2012, the regulations adopted by the Department of                                      
21 Commerce, Community, and Economic Development under former AS 44.33.238, and the                                        
22 regulations adopted by the Department of Revenue under former AS 43.98.030.                                             
23    * Sec. 5. Sections 2 and 4 of this Act take effect July 1, 2013.                                                   
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