Alaska R&D Tax Credit Summary
Although Alaska does not provide a Alaska state-specific R&D Tax credit based on qualified research expenses that mirror the Federal Research Tax credit, Alaska provides a state tax credit equal to eighteen percent (18%) of a company's federal-based credits, which includes the research and development tax credit. See 15 AAC 20.145. Credits adopted by reference.
Alaska also offer several other credits (see link). See also IRC § 38 for a complete list of federal-based credits eligible for the state credit.
Alaska Credit (R&D) summary:
This credit provides a dollar-for-dollar offset against Alaska tax liabilities. 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% 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%
For purposes of calculating the accumulated earnings tax, the rate is 4.95% of the first $100,000 of accumulated taxable income and 6.93% 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
The definition of qualified research expenses is the same as under IRC § 41.
Federal-based credits may offset Alaska alternative minimum tax (AMT) only after Alaska incentive credits are applied.
Unused federal-based credits may be carried back 1 year and forward for up to 20 years.
To claim the credit, a company must file Alaska Form 6390 – Alaska Federal-based Credits along with its state tax return.
Credit Claim Process:
A company must file Alaska Form 6390 – Alaska Federal-based Credits along with its state tax return. See also Alaska Form 6390 Instructions.
Refundable/Transferable Tax Credit: No
Carryover: Follows Fed. In general unused credits after carrying it back 1 year are carried forward to each of the 20 tax years after the year of the credit. See 26 U.S. Code § 39.Carryback and Carryforward of Unused Credits & IRS Instructions for Form 3800 (2018)