State of Alaska
Fiscal Note
Bill Version: CSHB 109(W&M)
2024 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 4/17/2024
Identifier: HB109-DOR-TAX-4-15-24 Department: Department of Revenue
Title: REDUCE CORP. NET INCOME TAX RATE Appropriation: Taxation and Treasury
Sponsor: CARPENTER Allocation: Tax Division
Requester: (H) Ways & Means OMB Component Number: 2476
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2025 Governor's
Appropriation FY2025 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2025 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
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
1004 Gen Fund (UGF) (168,500.0) (364,900.0) (380,500.0) (395,100.0) (405,600.0) (416,700.0)
Total (168,500.0) 0.0 (364,900.0) (380,500.0) (395,100.0) (405,600.0) (416,700.0)
Estimated SUPPLEMENTAL (FY2024) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2025) 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If yes, by what date are the regulations to be adopted, amended or repealed?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:
Updated from SLA2023 to SLA2024 fiscal note template. Fiscal analysis also updated for the effective date and projected the change
in revenues through FY2030.
Prepared By: Michael Williams, Acting Deputy Director Phone: (907)269-6632
Division: Tax Division Date: 04/15/2024 06:30 PM
Approved By: Adam Bryan, Division Operations Manager Date: 04/15/24
Agency: Department of Revenue
Printed 4/17/2024 Page 1 of 2 Control Code: KtOZj
 CSHB 109(W&M) - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB 109
2024 LEGISLATIVE SESSION
Analysis
Background Information – Corporate Income Tax
Under current law, C‐corporations are subject to ten graduated tax brackets with tax rates ranging from zero to 9.4
percent. This bill would remove the graduated tax rates above 2 percent, leaving a rate of zero for taxable income of less
than $25,000 and a rate of 2 percent for taxable income of $25,000 or more.
This bill has an effective date of January 1, 2025. For fiscal analysis purposes, the bill is assumed to be in effect for the
second half of FY2025, with the first full year occurring in FY2026.
Revenue Impact – Corporate Income Tax
This bill would reduce corporate income tax revenue by $168.8 million in FY2025, which assumes the new tax structure
would be effective for the second half of the fiscal year.
Implementation Cost
This bill would require the department to update its Tax Revenue Management System (TRMS) and Revenue Online (ROL)
which allows a taxpayer to file a return online. Resources required to implement this bill would include staff time to
update tax forms, TRMS, and ROL, and other miscellaneous costs when applicable. These costs will be absorbed by the
Tax Division using existing resources.
(Revised 10/31/2023 OMB/LFD) Page 2 of 2
HB109-DOR-TAX-4-15-24 Page 2 of 2 Control Code: KtOZj


Statutes affected:
HB0109A, AM HB 109, introduced 03/13/2023: 43.20.011
HB0109B, AM CSHB 109(W&M), introduced 04/17/2024: 43.20.011