Alaska R&D State Tax Credit
Although Alaska does not provide a State R&D Tax credit based on qualified research expenses that mirror the Federal Research Tax credit, they offer several other credits.
Refundable/Transferable Tax Credit – No
- Under IRC § 41, where a credit allowed under the Internal Revenue Code is also allowed in computing Alaska income tax, it is limited to 18 percent for corporations of the amount of credit determined for federal income tax purposes which is attributable to Alaska. This limitation does not apply to a special industrial incentive tax credit under AS 43.20.042
- For purposes of calculating the federal tax payable on personal holding companies, the rate is 12.6 percent
- For purposes of calculating the accumulated earnings tax, the rate is 4.95 percent of the first $100,000 of accumulated taxable income and 6.93 percent of accumulated taxable income in excess of $100,000
- Qualified activities need not be conducted in Alaska to qualify, but must be conducted within the United States
How to obtain the credit?
A company must file Alaska Form 6390 – Alaska Federal-based Credits along with its state tax return.
Find out if you qualify for the R&D tax credit
SELL YOUR NOL’s AND R&D CREDITS
If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
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