This bill proposes amendments to Alaska's tax laws to create a tax exemption for qualified small businesses and establish a transferable tax credit for certain film production expenditures incurred within the state. Specifically, it adds a new category of tax exemption for Alaska corporations that qualify as small businesses under federal law, with a cap on the total tax foregone by the state set at $2.7 million per calendar year. The bill also outlines the criteria for determining eligibility for the tax exemption and mandates that the Department of Revenue notify qualifying corporations one year before the expiration of their exemption.

Additionally, the bill introduces a film production tax credit program, allowing producers to receive credits for qualified expenditures related to film production in Alaska. The credits can be transferred, sold, or assigned, and must be utilized within three years of issuance. The program sets a limit of $20 million on the total amount of tax credits that can be awarded and specifies eligibility criteria for productions seeking the credit. The film production promotion program is tasked with administering this initiative, which aims to enhance the film industry in Alaska while providing economic benefits to the state.

Statutes affected:
HB0113A, AM HB 113, introduced 02/24/2025: 43.20.012, 16.10.380, 16.10.400, 16.10.450, 16.10.455, 16.12.010, 16.12.080, 16.12.090, U.S.C
HB0113B, AM CSHB 113(L&C), introduced 03/10/2025: 43.20.012, 16.10.380, 16.10.400, 16.10.450, 16.10.455, 16.12.010, 16.12.080, 16.12.090, U.S.C, 43.98.032, 43.98.031, 43.98.036, 43.98.033, 43.98.034, 43.98.038, 44.25.105, 43.98.037, 44.33.231