Alaska Form 6310: The R&D Education Credit
"Form 6310 allows Alaska businesses to claim a tax credit of up to 50% for contributions made to eligible educational institutions, serving as the state's primary vehicle for incentivizing university-led Research & Development."
The Strategic Context
Unlike the federal R&D credit (Form 6765), which focuses on internal wages and supplies, Alaska's approach centers on partnership. The state leverages the Alaska Education Tax Credit (filed via Form 6310) to drive R&D through the University of Alaska system and accredited non-profits.
For corporations operating in Alaska, this is a "use it or lose it" opportunity to direct tax dollars toward specific research initiatives—such as arctic engineering, fisheries, or energy—that directly benefit their industry, rather than paying that money into the general fund.
- ✓ 50% Credit Rate: Applied to the first $100,000 of contributions.
- ✓ Direct R&D Funding: Companies can restrict donations to specific research departments.
- ✓ Transferability: Unused credits can often be applied against other tax liabilities (subject to specific statute years).
Fund Allocation Breakdown
Where R&D contributions typically flow via Form 6310.
Source: Aggregated Alaska Dept. of Revenue Reporting Types
The Limit
$1M
Annual cap per taxpayer for the Education Credit (subject to specific tax year legislation).
The Form
6310
Must be attached to Form 6000, 6100, or 6150 (Corporate Income Tax Returns).
Carryforward
3 Years
If the credit exceeds tax liability, it may be carried forward to future tax years.
Navigating Alaska’s Innovation Incentives: Clarifying the Role of Form 6310 and the Federal-Based R&D Tax Credit
I. Executive Summary: Clarifying the Incentive Mechanism
Alaska Department of Revenue (DOR) Form 6310 is the state’s Income Tax Education Credit, utilized for contributions to qualified Alaskan educational and childcare facilities.1 Conversely, the Alaska Research and Development (R&D) Tax Credit is claimed through Alaska Form 6390 (Alaska Federal-Based Credits), calculated as 18% of the apportioned federal R&D tax credit.3
The distinction between these two forms is paramount for compliance. While Form 6310 relates to direct state-level contributions for educational purposes, the R&D incentive leverages the federal tax code framework. The Alaska R&D tax credit is a significant benefit designed to encourage innovation by providing a credit equivalent to 18% of the allowed federal R&D tax credit (IRC § 41).5 This mechanism allows companies operating in Alaska to reduce their state tax liability based on the same qualified research expenditures (QREs) they claim federally, fostering a resilient and diversified state economy.5
II. The Necessary Distinction: Form 6310 vs. The R&D Credit
A common pitfall in Alaska tax planning involves confusing the administrative forms for various credits. The Form 6310 name often leads businesses to incorrectly associate it with research activities, when its statutory purpose is entirely focused on supporting education and workforce initiatives.
A. Alaska Form 6310: The Income Tax Education Credit
Form 6310, officially titled “Alaska Income Tax Education Credit,” is prescribed for calculating a tax credit derived from specified contributions made to qualified Alaskan institutions.2
Calculation and Eligibility
The primary function of Form 6310 is to determine a tentative credit equal to 50% of qualifying contributions and expenditures.7 The state legislature utilizes this high credit percentage to directly incentivize specific philanthropic and social investments within the state.
Qualifying recipients and expenditures under this credit include 1:
- Contributions for direct instruction, research, and educational support at Alaska universities and accredited two- or four-year colleges.
- Donations to school districts or state-operated vocational and training schools for vocational education programs and facilities.
- Support for K-12 Science, Technology, Engineering, and Math (STEM) programs provided by a non-profit agency or school district.1
- Expenditures related to operating or contributing to non-profit Alaska child care facilities for the children of the taxpayer’s employees.1
The state imposes a generous annual cap on the base contributions and expenditures claimed on Form 6310, limiting the value entered on lines 3a and 3b so that their sum does not exceed $6,000,000.7 This translates to a maximum tentative credit of $3,000,000.
Documentation Requirements for Contributions
If a taxpayer claims contributions of equipment rather than cash, strict documentation rules apply. For any equipment donation exceeding $5,000 in value, the Alaska Department of Revenue (DOR) requires the submission of a written appraisal from a qualified appraiser, alongside acknowledgment from the recipient organization.1 Form 6310 also requires documentation detailing the original acquisition date, the date of title transfer, the donor’s cost or adjusted basis, and the appraised fair market value of the equipment.1
B. The True R&D Claim Mechanism: Alaska Form 6390
The actual mechanism for claiming the R&D tax incentive is Alaska Form 6390, Alaska Federal-Based Credits.3 This form is mandated for all taxpayers claiming federal credits that Alaska has adopted by reference.
The statutory basis for the credit rests on Alaska Statute (AS) 43.20.021(d), which dictates that where a credit allowed under the Internal Revenue Code (IRC) is also allowed in computing Alaska income tax, it is subject to specific state limitations.4 Form 6390’s purpose is to manage the complex calculation necessary to order and limit these federal-based credits, including the R&D credit, against the taxpayer’s state tax liability.4
The difference in how the state structures these two major incentives—Form 6310 offering a 50% credit rate for direct, localized educational investment, versus Form 6390 adopting the R&D credit at a limited 18% of the federal amount—reveals a significant policy preference. By offering a high rate for specific state contributions, the legislature signals that it places a high value on encouraging localized social programs, relying on the less generous, federally tethered system to support general business innovation.
Table 1: Comparison of Alaska Tax Credit Forms
| Characteristic | AK Form 6310 (Income Tax Education Credit) | AK Form 6390 (Federal-Based Credits) |
| Primary Purpose | Contributions to educational institutions and childcare facilities. | Claiming state benefit based on federal tax credits (e.g., R&D). |
| Relevant Statute | AS 43.20.014 8 | AS 43.20.021(d) 4 |
| Calculation Rate | 50% of qualifying contributions (up to annual limit).7 | 18% of the federal R&D credit apportioned to Alaska.3 |
| Federal Prerequisite | None. | Required filing of Federal Forms 6765 and 3800.5 |
III. Statutory and Administrative Framework for the Alaska R&D Credit
The operational structure of the Alaska R&D credit is entirely dependent on the taxpayer’s claim made at the federal level, subject only to Alaska’s rate limitation and apportionment rules.
A. The Federal-Based Credit Structure and the 18% Multiplier Rule
The core mechanism of the state credit is defined by the fixed percentage of the federal credit.
The 18% Multiplier
Alaska allows an R&D tax credit equivalent to 18% of the allowed federal R&D tax credit.3 This federal credit is recognized under IRC § 41, which is part of the broader IRC § 38 General Business Credits. For a corporation to claim the Alaska credit, it must first successfully calculate and claim the federal R&D credit.5 This requires filing IRS Form 6765, Credit for Increasing Research Activities, and integrating that result into IRS Form 3800, General Business Credit, which documents all general business credits.3
Alternative Rate Structures
While the 18% rate applies broadly to corporate income tax liability offsets, specialized rates are required for calculating tax related to certain corporate structures. For instance, in calculating the federal tax payable on personal holding companies, the rate is limited to 12.6% of the federal credit. Furthermore, when computing the accumulated earnings tax, a tiered rate structure applies: 4.95% on the first $100,000 of accumulated taxable income, and 6.93% on any accumulated taxable income exceeding $100,000.9 These complex limitations underscore the need for expert guidance when calculating the final credit based on specific entity structures.
Eligible Entities
The Alaska R&D tax credit is available to all common business entities conducting business in the state, including C-Corporations, S-Corporations, Limited Liability Companies (LLCs), and Partnerships.3 Notably, sole proprietorships are generally ineligible for this credit.5
B. The Apportionment Requirement for Multi-State Businesses
A critical step in calculating the Alaska R&D credit is apportionment for businesses that operate both inside and outside the state.
Calculating the Alaska-Attributable Credit
The 18% multiplier is applied not to the total federal credit, but only to the amount that has been properly apportioned to Alaska.4 Form 6390, specifically Line 6, requires the taxpayer to apply the Alaska apportionment factor to the total current federal general business credit applicable to Alaska (Line 5).10 This factor ensures that only the portion of the federal credit generated by economic activity deemed to be within Alaska is used to calculate the state benefit.
Location Flexibility and Policy Implications
A significant feature of the Alaska R&D credit is that the qualified activities themselves need not be physically conducted within Alaska to qualify for the state credit, provided they occur within the United States.5
This administrative decision has profound implications for state economic development strategy. Since development costs in Alaska can be higher than the national average 6, requiring physical R&D infrastructure within the state would potentially discourage participation. By adopting the federal credit and focusing the requirement on the company’s presence in Alaska for tax purposes (through the apportionment factor), the state’s tax framework encourages companies that conduct research elsewhere to maintain a commercial presence in Alaska, allowing them to benefit from the state tax reduction without bearing the high cost of relocating extensive R&D facilities. This policy sustains progress and fosters local solutions to local challenges across industries like energy, tech, manufacturing, agriculture, and natural medicine.3
IV. Defining Qualified Research Expenditures (QREs)
The definition of research activity eligible for the Alaska credit is dictated entirely by the federal standard, specifically the requirements set forth in IRC § 41.3
A. The IRC § 41 Four-Part Test
Activities must satisfy the rigorous four-part test to qualify for the federal, and consequently, the Alaska R&D credit:
- Qualified Purpose: The expenditure must be for the purpose of creating a new business component or improving the functionality, quality, reliability, or performance of an existing one. This improvement need only be new to the company conducting the research, not necessarily new to the entire industry.5
- Elimination of Uncertainty: The research activities must be intended to eliminate technological uncertainty. This involves demonstrating that the company was uncertain about the capability, the methodology, or the appropriate design of the resulting business component at the outset of the research.5
- Process of Experimentation: The company must prove that it engaged in a process of systematic trial and error, testing, modeling, or simulation to evaluate alternatives for achieving the desired technological outcome.5
- Technological in Nature: The experimentation process must fundamentally rely on principles of hard sciences, such as engineering (including various branches), chemistry, physics, or computer science.5
B. Examples of Qualified Research Expenses (QREs)
Qualified research expenses (QREs) are typically incurred during the development or improvement of products, processes, or software that meet the four-part test.12 The expenses eligible for inclusion are 13:
- Employee Wages: Wages paid for qualified services, which include individuals directly performing the research, those directly supervising the research, or those providing direct support to the research activities.
- Qualified Supply Costs: Expenses for tangible property that is consumed or used up during the research process, such as raw materials used to fabricate and test prototypes. Importantly, expenses for depreciable equipment, land, or general office supplies are excluded.13
- Contract Research Expenses: Amounts paid to external contractors or third parties to perform qualified research on behalf of the taxpayer. These costs are typically limited to 65% of the total payment.
V. Compliance Mandate: Application and Ordering on Alaska Form 6390
Form 6390 is indispensable because it not only calculates the limited 18% credit but also manages the application of that credit against the state tax liability according to Alaska’s statutory ordering rules.
A. Credit Ordering Rules and Alternative Minimum Tax (AMT)
Alaska applies a specific hierarchy for the utilization of tax credits, which significantly impacts how and when the R&D credit can be used.
The regulations stipulate that federal-based credits, including the R&D credit claimed through Form 6390, may only be applied to offset Alaska regular or Alternative Minimum Tax (AMT) liabilities after all primary Alaska incentive credits have been applied.3 Alaska incentive credits are defined by various state statutes, such as the Education Credit (Form 6310) or certain industry-specific credits.4
Form 6390 mandates a calculation to determine the remaining tax liability against which the R&D credit may be applied. Line 12c requires the subtraction of Alaska incentive credits from the Alaska regular tax liability (Line 12a), and Line 13c performs the same calculation for the Net Alaska alternative minimum tax (AMT).10 This credit hierarchy means that the economic benefit of the R&D incentive is effectively subordinate to the state’s direct incentive programs. Taxpayers must meticulously track and utilize non-transferable, non-refundable Alaskan credits first, a crucial step in maximizing the benefit of all available tax offsets before turning to the 18% federal-based R&D credit. If primary incentive credits absorb most or all of the current year’s tax liability, the R&D credit may be pushed entirely into carryforward years.
B. Credit Utilization and Carryforward Provisions
The Alaska R&D credit is classified as a non-refundable credit, meaning it cannot result in a cash refund to the taxpayer; it can only reduce or eliminate tax liability.11
A major advantage of the federal-based structure is the favorable carryforward period, which mirrors the federal rules. Any unused portion of the federal-based R&D credit may be carried back for one year and carried forward for up to 20 years.3 This robust carryforward period is particularly beneficial for innovative companies, especially startups or those in energy and manufacturing sectors, which often incur significant QREs early in their development cycle before achieving large taxable profits.
VI. Numerical Example: Applying the Apportionment and 18% Multiplier
The following example demonstrates the multi-step process required for calculating and applying the Alaska R&D credit using the statutory 18% multiplier and apportionment factor on Form 6390.
Case Study: North Slope Technology Group (Tax Year 2024)
North Slope Technology Group (NSTG) is a multi-state corporation (C-Corp) specializing in energy-efficient technology development.
| Metrics | Value | Rationale/Form Line |
| Total Calculated Federal R&D Credit (Form 6765) | $400,000 | Federal Form 3800, Line 1 10 |
| Alaska Apportionment Factor | 0.40 (40%) | AK Form 6390, Line 6 10 |
| Alaska Regular Tax Liability (Before Credits) | $120,000 | AK Form 6000/6100, Schedule D, Line 2 10 |
| Alaska Incentive Credits Applied (e.g., Form 6310) | $10,000 | Applied before Form 6390 credits 4 |
Calculation Sequence:
- Federal Credit Apportioned to Alaska (Form 6390, Line 7):
$$\text{Apportioned Credit} = \$400,000 \times 0.40 = \$160,000$$ - Total Current Apportioned General Business Credit (Form 6390, Line 8):
$$\text{Alaska R\&D Credit} = \$160,000 \times 0.18 = \$28,800$$
The tentative Alaska R&D Credit available for the current year is $28,800. - Alaska Regular Tax After Incentive Credits (Form 6390, Line 12c):
$$\text{Adjusted Regular Tax} = \$120,000 – \$10,000 = \$110,000$$
This represents the maximum tax liability the federal-based credit can offset, assuming no AMT applies. - Allowable Credit (Form 6390, Line 14/15):
Since the available credit ($\$28,800$) is less than the remaining tax liability ($\$110,000$), the full available credit of $28,800 is applied to reduce the state tax due. - Unused Credit (Carryforward):
In this scenario, no unused credit remains to be carried forward, as the full credit was utilized against the current year’s liability.
VII. Documentation and Compliance Requirements
Due to the derivative nature of the Alaska R&D credit, strict adherence to both federal and state documentation standards is mandatory. The integrity of the Alaska claim rests entirely on the successful substantiation of the underlying QREs claimed federally.
A. Essential Documentation Submission
To successfully claim the R&D credit, a company must submit specific forms to the Alaska DOR along with its primary tax return (Form 6000, 6100, or 6150).3
- Alaska Forms: Form 6390 – Alaska Federal-Based Credits must be completed and attached to the state corporate income tax return.3
- Federal Forms: Copies of the relevant federal forms, including IRS Form 6765 (which calculates the federal research credit) and IRS Form 3800 (General Business Credit), must be included.3
- QRE Substantiation: While the Alaska DOR may not conduct a separate R&D audit, the taxpayer must maintain thorough documentation to justify the QREs used to determine the federal credit amount. This documentation must demonstrate compliance with the IRC § 41 four-part test and typically includes 3:
- Detailed general ledger and payroll records.
- Project-specific time logs and expense records.
- Technical documentation, project notes, lab results, and business communications proving the technological uncertainty and process of experimentation.
B. Electronic Filing Mandate
The Alaska DOR requires that effective July 1, 2016, taxpayers must electronically file their return or report unless a specific waiver is granted.14 Furthermore, all supporting federal tax return information, including the essential Forms 6765 and 3800, must be submitted in a digital file format to facilitate compliance and processing.14
VIII. Conclusion and Strategic Recommendations
The complexity surrounding Form 6310 and its frequent misidentification as the R&D credit vehicle highlights the critical need for specialized tax expertise when navigating Alaska’s incentive landscape. The true R&D incentive, facilitated through Alaska Form 6390, is a strategic tax benefit designed to complement the federal credit by providing an 18% state offset based on apportioned federal qualifying expenditures.
This structure allows Alaska-based businesses, particularly those in the highly innovative energy and technology sectors, to leverage federal incentives without being restricted to conducting all research within the state’s geographic borders. The policy objective is clearly to support businesses with a commercial nexus in Alaska, regardless of where the physical R&D occurs.
Strategic Recommendations
Based on the statutory framework and administrative requirements, the following recommendations are critical for maximizing the Alaska R&D tax credit benefit:
- Prioritize Federal Compliance: Since the Alaska credit is solely dependent on the federal calculation, achieving and substantiating eligibility under IRC § 41 (the four-part test) via Form 6765 must be the foremost compliance priority. Comprehensive documentation of QREs is foundational to a successful state claim.
- Adhere to Credit Application Hierarchy: Taxpayers must strictly follow the DOR’s credit ordering rules, applying all direct Alaska incentive credits (such as the Education Credit on Form 6310) against the tax liability before applying the federal-based R&D credit via Form 6390. This procedural necessity prevents the unintentional deferral of higher-value state credits.
- Optimize Multi-State Apportionment: For corporations operating across state lines, accurately determining the Alaska apportionment factor is essential, as this factor directly limits the base amount to which the 18% multiplier is applied.
Leverage Long-Term Carryforward: Taxpayers should meticulously track and document any unused R&D credit amounts. The generous one-year carryback and 20-year carryforward period provides robust long-term tax planning stability, ensuring that current QRE investments yield future tax relief even if not fully utilized immediately.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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