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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 83                                                                                                          
01 Making the income received by a regional aquaculture association or a salmon hatchery                                   
02 permit holder from the sale of salmon or salmon eggs under or from a cost recovery fishery                              
03 exempt from the corporation income tax; relating to the corporation income tax; relating to                             
04 the computation of interest under the look-back method applicable to long-term contracts in                             
05 the Internal Revenue Code; relating to the assignment of certain tax credits; providing for an                          
06 effective date by repealing the effective date of sec. 8, ch. 51, SLA 2012; and providing for an                        
07 effective date.                                                                                                         
08                           _______________                                                                               
09    * Section 1. AS 43.20.012(a) is amended to read:                                                                   
10            (a)  The tax imposed by this chapter does not                                                                
11                 (1)  apply to an individual;                                                                            
12                 (2)  apply to a fiduciary; [OR]                                                                         
13                 (3)  for a tax year beginning after December 31, 2012, apply to an                                      
01       Alaska corporation that is a qualified small business and that meets the active business                          
02       requirement in 26 U.S.C. 1202(e) as that subsection read on January 1, 2012; or                               
03                 (4)  for a tax year beginning after June 30, 2007, apply to the                                     
04       income received by a regional association qualified under AS 16.10.380 or                                     
05       nonprofit corporation holding a hatchery permit under AS 16.10.400 from the                                   
06       sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery fishery                              
07       under AS 16.10.455.                                                                                           
08    * Sec. 2. AS 43.20.012(a), as amended by sec. 1 of this Act, is repealed and reenacted to                          
09 read:                                                                                                                   
10            (a)  The tax imposed by this chapter does not apply to                                                       
11                 (1)  an individual;                                                                                     
12                 (2)  a fiduciary; or                                                                                    
13                 (3)  the income received by a regional association qualified under                                      
14       AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400                                
15       from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery                                 
16       fishery under AS 16.10.455.                                                                                       
17    * Sec. 3. AS 43.20.021 is amended by adding a new subsection to read:                                              
18            (j)  For purposes of calculating interest under the look-back method in 26                                   
19       U.S.C. 460 (Internal Revenue Code), the rate of interest shall be as provided in that                             
20       section.                                                                                                          
21    * Sec. 4. AS 43.55 is amended by adding a new section to read:                                                     
22            Sec. 43.55.029. Assignment of tax credit certificate. (a) An explorer or                                   
23       producer that has applied for a production tax credit under AS 43.55.023(a), (b), or (l)                          
24       or 43.55.025(a) may make a present assignment of the production tax credit certificate                            
25       expected to be issued by the department to a third-party assignee. The assignment may                             
26       be made either at the time the application is filed with the department or not later than                         
27       30 days after the date of filing with the department. Once a notice of assignment in                              
28       compliance with this section is filed with the department, the assignment is irrevocable                          
29       and cannot be modified by the explorer or producer without the written consent of the                             
30       assignee named in the assignment. If a production tax credit certificate is issued to the                         
31       explorer or producer, the notice of assignment remains effective and shall be filed with                          
01       the department by the explorer or producer together with any application for the                                  
02       department to purchase the certificate under AS 43.55.028(e).                                                     
03            (b)  To be effective, the assignment does not require the approval or consent of                             
04       the department. The assignment must, at a minimum,                                                                
05                 (1)  be made in writing and signed by an officer or legally qualified                                   
06       agent of the explorer or producer making the assignment and the assignee,                                         
07       respectively;                                                                                                     
08                 (2)  identify the explorer or producer making the assignment, the                                       
09       assignee in whose favor the assignment is being made, and the production tax credit                               
10       application that is the subject of the assignment;                                                                
11                 (3)  define the interest in the production tax credit being assigned,                                   
12       expressed as either an amount in dollars, which may not exceed 90 percent of the                                  
13       credit applied for, or a percentage of the credit to be issued by the department;                                 
14                 (4)  specify an account with a bank located in the state, with sufficient                               
15       information for the electronic transfer of funds, to receive any future proceeds from                             
16       the purchase of the tax credit certificate under AS 43.55.028(e);                                                 
17                 (5)  cite this section and acknowledge that, once filed with the                                        
18       department, the assignment is irrevocable and cannot be modified without the written                              
19       consent of the assignee.                                                                                          
20            (c)  An assignment complying with this section creates a property interest                                   
21       owned by the assignee in the application and any production tax credit certificates                               
22       issued by the department to the explorer or producer and any future proceeds resulting                            
23       from the application, in the amount or to the extent set out in the assignment. An                                
24       assignee may create a valid and enforceable security interest in that property as                                 
25       otherwise provided by law.                                                                                        
26            (d)  Notwithstanding any other provision of law, and to the maximum extent                                   
27       permitted under federal laws, an assignment complying with this section shall give the                            
28       assignee a first priority claim, not dischargeable in bankruptcy, against the proceeds                            
29       received by the explorer or producer, including its estate, trustee, or other                                     
30       representative, resulting from the production tax credit application that is the subject                          
31       of the assignment under this section, if the assignee has taken the steps necessary                               
01       under state and federal law to perfect a security interest in the assignment.                                     
02            (e)  Nothing in this section affects the terms and conditions otherwise required                             
03       for an explorer or producer to qualify for a production tax credit or the determination                           
04       by the department of the amount of credit the explorer or producer is qualified to                                
05       receive.                                                                                                          
06            (f)  Neither the state nor the department, or any other agency, officer, or                                  
07       employee of the state, shall be subject to suit or any claim arising out of or in                                 
08       connection with an assignment made under this section, whether by act or omission.                                
09            (g)  The department may adopt regulations to carry out the purposes of this                                  
10       section.                                                                                                          
11    * Sec. 5. AS 43.20.012(c) and 43.20.012(d) are repealed July 1, 2023.                                              
12    * Sec. 6. Section 8, ch. 51, SLA 2012, is repealed.                                                                
13    * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to                          
14 read:                                                                                                                   
15       TRANSITION; CLAIM FOR CREDIT OR REFUND. Notwithstanding the limitation                                            
16 on the period in which a person may file a claim for credit or refund of a tax paid under                               
17 AS 43.20, a person that has paid a tax under AS 43.20 on income that is exempt under                                    
18 AS 43.20.012(a)(4), as enacted by sec. 1 of this Act, may file a claim for credit or refund on                          
19 the tax paid on the exempt income within two years after the effective date of sec. 1 of this                           
20 Act.                                                                                                                    
21    * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to                          
22 read:                                                                                                                   
23       RETROACTIVITY. Section 3 of this Act is retroactive to January 1, 2013.                                           
24    * Sec. 9. Section 45, ch. 51, SLA 2012, is repealed.                                                               
25    * Sec. 10. Section 2 of this Act takes effect July 1, 2023.                                                        
26    * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect immediately under                      
27 AS 01.10.070(c).                                                                                                        
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