AK HB280

Amends Alaska's Multistate Tax Compact to shift from "business income" to "apportionable income" terminology and updates sales apportionment rules to use market-based sourcing instead of cost-of-performance methods for determining where sales occur

Creates new tax apportionment rules for "highly digitized businesses" defined as companies with 50% or more of Alaska sales from electronically transmitted intangible property, electronic services, computer/Internet technology services, or Internet-based tangible goods sales

Highly digitized businesses would use a single sales factor for income apportionment rather than the traditional three-factor formula (property, payroll, sales)

Exempts public utilities and telecommunications service providers from the new highly digitized business provisions

Applies to tax years beginning on or after January 1, 2026, with immediate effective date and retroactivity to January 1, 2026