Bill Summary – FastDemocracy

State of Alaska
                                                                Fiscal Note
                                                                                                   Bill Version:                   CSHB 121(L&C)
 2021 Legislative Session
                                                                                                   Fiscal Note Number:             2
                                                                                                   (H) Publish Date:               3/25/2021
 Identifier:        HB121-DOR-TAX-03-12-21                                           Department:       Department of Revenue
 Title:             EDUC.TAX CREDIT: EMPLOYER CHILD CARE                             Appropriation: Taxation and Treasury
                    COST                                                             Allocation:       Tax Division
 Sponsor:           FIELDS                                                           OMB Component Number:                2476
 Requester: (H) Labor & Commerce
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                    (Thousands of Dollars)
                                                 Included in
                                    FY2022       Governor's
                                Appropriation      FY2022                                                 Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2022        FY 2022       FY 2023                           FY 2024             FY 2025         FY 2026         FY 2027
 Personal Services
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            0.0           0.0          0.0                                 0.0               0.0              0.0              0.0
 Fund Source (Operating Only)
 None
 Total                                               0.0              0.0                 0.0              0.0               0.0              0.0              0.0
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None                                                 ***                                 ***              ***               ***              ***              ***
 Total                                                ***             0.0                 ***              ***               ***              ***              ***
 Estimated SUPPLEMENTAL (FY2021) cost:                                         0.0              (separate supplemental appropriation required)
 Estimated CAPITAL (FY2022) cost:                                              0.0              (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                      No
 If yes, by what date are the regulations to be adopted, amended or repealed?                                      N/A
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:                Nicole S. Reynolds, Deputy Director                                                          Phone:       (907)269-6736
 Division:                   Tax Division                                                                                 Date:        03/12/2021
 Approved By:                Brian Fechter, Administrative Services Director                                              Date:        03/12/21
 Agency:                     Department of Revenue
Printed 3/25/2021                                                           Page 1 of 2                                                         Control Code: NixOZ
                                                                                                         CSHB 121(L&C) - Fiscal Note 2
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                   BILL NO. HB 121
2021 LEGISLATIVE SESSION
Analysis
   Background
   The education tax credit is a credit for qualifying contributions to Alaska universities and accredited nonprofit Alaska two-
   or four-year colleges for facilities, direct instruction, research and educational support purposes. The tax credit can also be
   claimed for donations to a school district or a state-operated vocational technical education and training school for
   vocational education courses, programs and facilities. Donations for Alaska Native cultural or heritage programs for public
   school staff and students, and a facility in the state that qualifies as a coastal ecosystem learning center under the Coastal
   American Partnership also qualify. Contributions to the Alaska Higher Education Investment Fund established in 2012
   qualify as well.
   The credit is available to be claimed against insurance premiums tax, title insurance premiums tax, corporate income tax,
   oil and gas production tax, oil and gas property tax, mining license tax, fisheries business tax, and fishery resource landing
   tax. The credit for any one taxpayer cannot exceed $1,000,000 annually across all tax types.
   The proposed legislation would expand the education tax credit to include donations made to childcare facilities for the
   children of the taxpayers employees, or for payments made to an employee of the taxpayer for the purpose of offsetting
   the employees childcare costs. The new provisions would take effect January 1, 2022.
   Revenue Impact
   The estimated revenue impact of this proposed legislation cannot be determined because the Department of Revenue
   does not have Alaska-specific data to estimate how many taxpayers will claim the expansion of the credit, how many
   taxpayers currently pay their employees' childcare costs or make donations to childcare facilities for the children of their
   employees, or how many taxpayers will start paying their employees' childcare costs or making donations to childcare
   facilities for the children of their employees. Other sources of uncertainty stem from the high contribution limits and high
   cost of care in Alaska, as well as the fact that the credit is available against multiple tax types in Alaska.
   Implementation Cost
   This proposed legislation would not require the Department of Revenue to make material changes to its Tax Revenue
   Management System (TRMS). Therefore, there would be no cost to the Department for implementation. Resources
   required to implement this bill would include staff time to updated tax forms, TRMS, and Revenue Online, and other
   miscellaneous costs when applicable. These costs will be absorbed by the Tax Division using existing resources.
(Revised 1/13/2021 OMB/LFD)                                                                                          Page 2 of 2
HB121-DOR-TAX-03-12-21                                          Page 2 of 2                                                Control Code: NixOZ
Statutes affected: 
HB0121A, AM HB 121, introduced 03/03/2021: 21.96.070, 21.09.210, 21.66.110, 43.20.014, 37.14.750, 14.16.200, 43.55.019, 43.55.011, U.S.C, 43.56.018, 43.65.018, 43.75.018, 43.77.045
HB0121B, AM CSHB 121(L&C), introduced 03/25/2021: 21.96.070, 21.09.210, 21.66.110, 43.20.014, 37.14.750, 14.16.200, 43.55.019, 43.55.011, U.S.C, 43.56.018, 43.65.018, 43.75.018, 43.77.045