AK HB113

Alaska corporations qualifying as small businesses under federal 26 U.S.C. 1202(e) standards are exempt from state corporate income tax, with total foregone tax capped at $2,700,000 per calendar year; construction, transportation, utility, and fisheries businesses are excluded from eligibility

Creates a transferable film production tax credit equal to 25% of qualified expenditures for productions with at least $100,000 in spending over 24 months, with bonus credits of 5% for wages paid to Alaska residents, 2% for rural area spending, and 2% for filming between October 1 and March 30

Total film production tax credits are capped at $20,000,000 in aggregate; credits are transferable and may be sold, assigned, or exchanged, but must be used within three years of issuance

Ineligible film productions include news programming, corporate/industrial productions, advertisements (except national TV commercials), infomercials, and political advertisements

Small business tax exemption provisions expire July 1, 2035; the act takes effect immediately upon passage