Alaska Basic Business Taxes 2012 | The Alaska Exploration Incentives Act | Area Development Online

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Alaska Basic Business Taxes 2012

Alaska's economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include no sales and use tax and the Alaska Exploration Incentives Act.

Area Development Online Research Desk (2012)

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Corporate income tax:
Corporations are taxed only on the portion of their net taxable income allocated and apportioned to the state. The state imposes no inventory tax, no gross receipts tax, no state sales tax, and no personal income tax.

Sales and use taxes:
The state levies neither a sales nor a use tax on businesses. Boroughs and cities may impose a sales and use tax of up to 7 percent on sales, rents, and services, and on use, storage, or consumption of tangible property within the city or borough limits.

Property tax:
The state imposes no property tax. Real property is subject to taxation by cities and boroughs. A separate annual tax of 20 mills is levied statewide on the true and full value of property used in unrefined gas and oil exploration, production, or pipeline transportation.

Mining/exploration credits:
The Alaska Exploration Incentives Act allows deduction of up to $20 million of qualified costs — including personnel, transportation, fuel, camp, communications, geochemical and geophysical, and contractual — for new mines. The exploration credits are site specific and may be assigned to successors in interest. The law provides 100 percent credit for eligible exploration costs against future mining license tax, corporate tax, and royalties on production. Credits are limited to no more than 50 percent of the taxes or royalties due the state in any given year and must be taken within 15 years of beginning production. To facilitate record keeping, the credits must be certified annually, with all submitted relevant data kept confidential for three years.

Alaska State Contact:
Division of Economic Development
Alaska Department of Commerce, Community and Economic Development
550 West 7th Avenue, Suite 1770
Anchorage, AK 99501
(907) 269-8110

Incentive and tax information is provided to Area Development by each state’s economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.

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