Governor Mike Dunleavy introduced legislation to incentivize the private sector to make strategic investments that improve the cost of living in Alaska.
The Alaska Affordability Act SB 237 will create a new tax credit.
According to Alaska statue this act establish a corporate income tax credit for certain expenditures on child care services, utility rates, residential housing, and food security and availability; and providing for an effective date.
The legislation would allow a business to deduct fifty percent of eligible expenditures against its corporate income tax, up to a fifty percent tax reduction. The eligible expenditures are:
1) Employer-provided childcare or qualified child care expenses paid by the employee and reimbursed by the employers
2) Business contributions that reduce residential heating or electricity utility rates
3) Business contributions that reduce residential mortgage rates or reduce the cost of constructing energy efficient residential housing
4) Business contributions that improve food security and affordability
The definitions of the qualifying expenditures would be adopted by the Department of Revenue in regulations.
“Alaska’s cost of living is among the highest in the nation. The areas of childcare, housing, energy and food are the greatest expenses for most families,” said Governor Mike Dunleavy. “The private sector is far more equipped to solve these challenges than the government. The Alaska Affordability Act will be a catalyst that sets in motion voluntary development by the private sector that will make Alaska an even better place to live and raise a family.”
A companion bill for SB 237 will be introduced in the House of Representatives at a future meeting.