Alaska State Tax Credits

More ways to save your hard-earned money from the tax man!

Alaska has some great State Tax Credit for you.

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap
Alaska

Alaska Affordability Act – Corporate Income Tax Credit

Overview:
Effective February 2025, the Alaska Affordability Act offers a 50% corporate income tax credit for businesses that invest in areas directly tied to reducing the cost of living in Alaska. Eligible contributions can be made toward childcare, utilities, housing, and food affordability efforts, but the credit comes with strict compliance and usage limits.

Who It’s For:
Corporations operating in Alaska that are subject to the state’s corporate income tax and are investing in initiatives that ease cost-of-living pressures for Alaskan residents.

Four Key Highlights:

  1. Covers 50% of Qualifying Cost-of-Living Investments
    Qualifying categories include:

    • Employer-provided or reimbursed childcare

    • Utility rate reduction initiatives

    • Housing affordability or energy-efficient construction

    • Food availability and affordability programs

  2. Strict Credit Usage Limits

    • The credit cannot reduce a business’s tax liability by more than 50% in a given year.

    • It is non-transferable and cannot be carried forward to future tax years.

  3. No Double Dipping Allowed

    • Expenses claimed for this credit can’t be used for other Alaska credits or deducted under federal tax law.

  4. Detailed Documentation Required

    • Businesses must retain records for three years, maintain clear proof of qualifying expenses, and follow all current and future Alaska Department of Revenue rules.

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