State of Alaska
Fiscal Note
Bill Version: SB 237
2024 Legislative Session
Fiscal Note Number: 1
(S) Publish Date: 2/19/2024
Identifier: 0419-DOR-TAX-02-14-24 Department: Department of Revenue
Title: TAX CREDIT CHILD Appropriation: Taxation and Treasury
CARE/UTILITY/HOUSE/FOOD Allocation: Tax Division
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number: 2476
Requester: Governor
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
None *** *** *** *** *** ***
Total *** 0.0 *** *** *** *** ***
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? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 01/01/25
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Michael Williams, Acting Deputy Director Phone: (907)269-6632
Division: Tax Date: 02/14/2024 03:00 PM
Approved By: Eric DeMoulin, Administrative Services Director Date: 02/14/24
Agency: Department of Revenue
Printed 2/19/2024 Page 1 of 2 Control Code: UnmSh
 SB 237 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL0419
2024 LEGISLATIVE SESSION
Analysis
This bill would create a credit against corporate income tax for qualifying expenditures for childcare, residential heating
and electricity affordability, housing affordability, and food affordability. The department is authorized to adopt
regulations to define qualifying expenditures.
The tax credit is limited to 50 percent of qualifying expenditures and may not exceed 50 percent of a corporation’s tax
liability for the year. Unused credits may not be sold, traded, transferred, or applied in a prior or subsequent year.
Qualifying expenditures may not be claimed for credit under another provision of Title 43, nor be taken as a deduction (26
U.S.C.) in computing the Alaska corporate income tax.
Revenue Impact
The Division is not able to predict the behavior of corporations in response to this bill—how much or for which activities
they might contribute. For that reason, this note is indeterminate. However, we have completed an analysis which
forecasts the maximum revenue impact this bill could have on corporate income tax revenue. Because the bill creates a
credit for money contributed and qualified spending, the impact would be a reduction to corporate income tax revenue.
The analysis splits out the maximum potential impact by non‐petroleum and petroleum taxpayers below:
The above analysis is estimated by scaling company tax return information by available earning per share projections. This
information is then rolled up by a sector by sector basis and scaled to reflect the Alaskan corporate tax base.
Implementation Costs
This legislation would require the Department of Revenue to make minor changes to its Tax Revenue Management System
(TRMS). 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 10/31/2023 OMB/LFD) Page 2 of 2
0419-DOR-TAX-02-14-24 Page 2 of 2 Control Code: UnmSh


Statutes affected:
SB0237A, AM SB 237, introduced 02/19/2024: