AK HB130

Expands Alaska net income tax to include "oil or gas business entities" (persons engaged in oil/gas production from state leases or pipeline transportation) using the same progressive tax brackets as corporations, with rates ranging from 2% to 9.4%.

Limits federal tax credits allowed under Alaska income tax to 18% of the portion generated by business expenses incurred in-state, replacing prior language that applied credits to corporations based on federal determinations.

Removes "royalties" from the list of dividends excluded under the water's edge combined reporting method for corporations, requiring royalty income to be included in taxable income.

Repeals provisions in AS 43.20.021(c), 43.20.144(g), 43.20.145(b)(3), and 43.20.145(g) related to corporate tax credits and deductions.

Denies Alaska taxpayers the federal CARES Act net operating loss carryback provision for tax years 2018-2020, requiring use of pre-CARES Act rules under 26 U.S.C. 172.

Takes effect January 1, 2022 (except Section 7, effective retroactively to January 1, 2020, and remaining provisions effective immediately).