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HB 113 Alaska House · 34th Legislature (2025-2026)

An Act relating to a tax exemption for qualified small businesses; and providing for an effective date.

HB 113 creates a tax exemption for certain Alaska corporations classified as "qualified small businesses" under federal tax code (26 U.S.C. §1202 as of January 2012). It directly affects eligible Alaska-based small businesses that meet federal active business requirements, excluding construction, transportation, utility, and fisheries businesses. The bill clarifies that qualifying corporations must be incorporated in Alaska or authorized to operate there, and treats parent-subsidiary groups as a single entity for exemption purposes. The exemption applies to tax years beginning after the bill's effective date, which is immediate under Alaska law. This is a direct policy change modifying tax liability for qualifying businesses, not a procedural or commemorative measure.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates tax exemption for qualified small businesses, providing tax relief and aligning with economic development under taxation policy.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 24, 2025 Last action Mar 10, 2025
Maddy AI version diff · 1 comparison

What changed between versions

HB 113 → CSHB 113(L&C) · 8 edits
MODERATE
The bill was amended to add a new film production tax credit program while modifying the existing small business tax exemption. The original bill focused only on small business tax exemptions, but the committee version expanded it to include a transferable tax credit for film production expenditures. This change broadens the bill's scope to support the film industry in addition to small businesses.
Scope change
The bill's scope expanded from solely providing tax exemptions for qualified small businesses to also creating a transferable tax credit program for film production expenditures incurred in Alaska.
SCOPE

Added a new film production tax credit program that allows producers to receive transferable tax credits for qualified film production expenditures in Alaska.

FISCAL

Set a $20,000,000 aggregate cap on the total film production tax credits available under the new program.

Added a $2,700,000 annual cap on the small business tax exemption amount that can be foregone by the state each calendar year.

ELIGIBILITY

Established eligibility requirements for the film tax credit, requiring producers to have at least $100,000 in qualified expenditures over a 24-month period.

Modified the small business tax exemption to include a restriction that the exemption applies only if the corporation meets active business requirements under federal law.

REQUIREMENT

Added requirements that film tax credits must be used within three years of being provided and specified which types of productions are ineligible for the credit.

ENFORCEMENT

Added a requirement for the department to notify corporations at least one year before their tax exemption expires.

TECHNICAL

Changed the bill title from 'HB 113' to 'CSHB 113(L&C)' and updated dates and committee information to reflect committee action.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
18
Key actions
1
Committee
2
Mar 10, 2025
Committee
(H) REFERRED TO FINANCE
lower
Mar 5, 2025
Lower · Passed
(H) Moved CSHB 113(L&C) Out of Committee
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.