This bill proposes amendments to existing tax credit laws in Alaska, specifically targeting contributions made to public schools and programs operated by tribal entities or Alaska Native organizations, as well as state-funded literacy programs. New provisions are added to various sections of the law, including AS 21.96.070 and AS 43.20.014, allowing tax credits for contributions of cash or equipment to these educational entities. The bill also establishes a new cap on the total amount of credits that can be claimed, increasing the limit from $3,000,000 to $10,000,000 for both individual taxpayers and affiliated groups.

Additionally, the bill clarifies that contributions claimed as credits cannot be used as the basis for credits under other provisions of the tax code, nor can they be deducted against federal taxes. The effective date for these changes is set for January 1, 2026. Overall, the bill aims to enhance support for educational initiatives in Alaska, particularly those benefiting tribal and literacy programs, while also adjusting the financial limits on tax credits available to contributors.

Statutes affected:
HB1003A, AM HB 1003, introduced 08/02/2025: 21.96.070, 43.20.014, 43.55.019, 43.56.018, 43.65.018, 43.75.018, 43.77.045, 43.20.145