Budget & Taxes (Property Tax)

SB 96 expands existing Alaska tax credits (including income, property, oil/gas producer, mining, and fisheries business credits) to allow businesses to claim credits for certain child care expenses related to their employees. Specifically, it adds three qualifying expenses: operating child care facilities for employees' children, contributing to nonprofit child care facilities for employees' children, and paying employees to offset their state child care costs. The bill also requires annual inflation adjustments to credit limits starting in 2030, tied to the Consumer Price Index for urban Alaska. This directly affects businesses in sectors covered by these tax credits, enabling them to reduce taxable income by claiming these new child care-related expenses. The bill was signed into law on June 24, 2025, with the changes effective for tax years beginning on or after January 1, 2030.

SB 1003 expands Alaska's tax credit system to allow businesses to claim credits for cash or equipment donations to tribal-operated public schools (via state compacts) and state-funded literacy programs. It modifies existing education tax credits - including those for insurance, oil/gas producers, property, mining, and fisheries businesses - to include these new donation categories. The bill sets a $10 million annual limit on total education tax credits per taxpayer (or $3 million for affiliated groups), preventing excessive credit claims across multiple programs. This directly affects businesses making qualifying donations to these specific educational initiatives in Alaska.

HB 1003 expands tax credits for businesses and individuals who donate to specific education programs in Alaska. It adds two new credit categories: contributions to public schools operated by tribal entities under state compacts, and donations to state-funded literacy programs run by the Department of Education. The bill also modifies existing education tax credits (including those for oil/gas, mining, and fishing businesses) by setting a $3 million annual limit per taxpayer for combined credits, preventing double-counting with other education-related credits. This policy directly affects taxpayers making qualifying donations to tribal schools, literacy initiatives, or state education programs.