Schedule D (Form 6000) Analyst
Alaska Corporate Net Income Tax Return
"Schedule D represents the calculation mechanism for claiming the Alaska Education and Research & Development Credit, directly incentivizing in-state innovation."
The Strategic Meaning of Schedule D
In the context of Alaska's tax code, Schedule D is not merely an attachment; it is the **substantiation vehicle**. It reconciles federal Qualified Research Expenses (QREs) with Alaska's specific apportionment rules to determine the allowable credit against the Corporate Net Income Tax (Form 6000).
Key Facts
Applied to qualified expenses exceeding the base amount.
Alaska Statutes referencing Internal Revenue Code § 41.
Must be filed alongside Schedule D for incentive tracking.
Unused credits can be carried forward for up to 4 tax years.
Typical QRE Composition
Breakdown of expenses typically entered on Schedule D.
Decoding the Line Items
Schedule D requires precise data entry. Hover over the simulated form lines below to understand the specific requirement and regulatory context for each section.
Select a Line
Hover over or click a line item on the left to see detailed guidance.
...
Revenue Office Guidance & Law
Understanding the Alaska Department of Revenue (DOR) specific applications of AS 43.20.021.
🏛️ Application of IRC § 41
Alaska adopts the Internal Revenue Code (IRC) by reference. This means that to qualify for the Alaska credit via Schedule D, the activity must first pass the federal "Four-Part Test":
- Permitted Purpose: Must improve performance, reliability, or quality.
- Technological in Nature: Based on hard sciences (engineering, physics, CS).
- Elimination of Uncertainty: Must attempt to solve a technical unknown.
- Process of Experimentation: Modeling, simulation, or trial/error.
📍 In-State Restriction
Unlike the federal credit which covers US-wide expenses, Schedule D explicitly filters for Alaska-based expenses.
Guidance: Wages paid to employees physically working in Alaska qualify. Remote workers based in Seattle working for an Anchorage firm do not qualify for the Alaska specific calculation on Schedule D.
📄 Filing Requirements (Form 6000)
Schedule D is attached to Form 6000. It is calculated after the tentative tax liability is determined but before payments/estimated taxes are applied.
| Document | Purpose | Deadline |
|---|---|---|
| Form 6000 | Main Corporate Net Income Tax Return | 15th day of 4th month following tax year close |
| Schedule D | Calculation of R&D Credit | Attached to Form 6000 |
| Federal Form 6765 | Substantiation of QREs (Federal) | Must be available upon audit request |
Interactive Case Study
Scenario: "Arctic Tech Solutions," an Anchorage-based software firm, is filing Form 6000. Use the inputs below to simulate their Schedule D calculation and see the potential tax savings.
Financial Inputs
Direct research wages paid in AK.
Consumed in R&D process.
3rd party research (only 65% eligible).
Historical average expenditure threshold.
Schedule D Waterfall: From Expense to Credit
Strategic Tax Planning in the Last Frontier: Deconstructing Schedule D (Form 6000) and the Alaska R&D Credit
Executive Summary: The Dual Role of Schedule D and the 18% Rule
Schedule D of Alaska Form 6000 is the state form used to calculate a corporation’s regular tax liability based on its Alaska taxable income. This determined liability (specifically Line 2) establishes the maximum limit against which the allowable Alaska R&D Tax Credit, derived from the federal credit and strictly limited to 18% of the apportioned federal amount, can be applied in the current tax year.
The Alaska corporate tax environment links closely to the federal system, but critical state modifications—particularly the severe 18% limitation on federal-based credits and the specific sequencing requirements imposed by Form 6390—demand meticulous compliance. Schedule D (Form 6000) is foundational to this process, as its calculated output defines the ceiling for credit utilization. Furthermore, practitioners must navigate the historical context of AS 43.20.042 (the Special Industrial Credit), which dictates credit stacking rules even if the incentive itself is largely sunsetted.
I. Foundational Understanding of Alaska Corporate Taxation
This section establishes the technical role of Alaska Form 6000 and the distinct function of its Schedule D in determining corporate income tax liability.
1.1. Alaska Form 6000: The Corporate Compliance Anchor
Alaska Form 6000 serves as the mandatory Alaska Corporation Net Income Tax Return.1 Corporate taxpayers in Alaska are generally required to file and pay their corporate income taxes 30 days after the corresponding federal deadline; for calendar year corporations, this typically means a filing deadline of May 15th.2
Alaska’s corporate tax structure maintains a strong nexus with the federal system. To facilitate calculation, corporations must attach a copy of the completed federal tax return and all required federal schedules to the state filing.2 This requirement reflects Alaska’s adoption of federal taxable income as the baseline for determining the starting point of state calculations, requiring state-specific adjustments detailed elsewhere on the return.
1.2. Schedule D (Form 6000): The Alaska Tax Computation Schedule
The primary function of Schedule D within the Form 6000 structure is strictly defined as the “Alaska Tax Computation”.1 Its purpose is to compute the gross tax liability by taking the Alaska taxable income figure (derived from Schedule A, line 3 of Form 6000) and applying the state’s statutory tax rate table.1
It is essential for tax professionals to differentiate this function from the IRS’s federal Schedule D (Form 1040 or 1120), which is used exclusively for reporting Capital Gains and Losses.4 For the Alaska Department of Revenue (DOR), the key output of this state schedule is the resulting tax amount, specifically Schedule D, line 2, which represents the corporation’s total regular tax liability before the application of any non-refundable tax credits.
This calculated liability serves as the essential input parameter for subsequent credit calculations. Alaska Form 6390, the form required for claiming federal-based credits, explicitly references this output. Specifically, Form 6390, Line 12a, requires the entry of the “Alaska regular tax from Schedule D, line 2 of Form 6000”.5 This demonstrates a structural causal relationship: regardless of how large a credit a taxpayer generates through the complex calculation on Form 6390, the maximum ceiling for current-year utilization is structurally determined by the initial tax calculated on Schedule D. A lower gross liability on Schedule D necessitates reliance on the 20-year carryforward rule for any excess R&D credit, directly impacting current-year cash flow benefits.
Comparison of Federal and Alaska Schedule D Forms
| Form/Schedule | Jurisdiction | Purpose | Key Output/Function |
| Schedule D (Form 1040/1120) | Federal (IRS) | Reporting Capital Gains and Losses from the sale of capital assets. | Calculation of Net Capital Gain or Loss. |
| Schedule D (Form 6000) | Alaska (DOR) | Computation of Gross Tax Liability (Regular Tax). | Calculation of Alaska Regular Tax before application of tax credits. |
II. The Alaska Research and Development Tax Credit Mechanism
Alaska’s approach to the R&D credit is unique, relying entirely on the federal framework while imposing a rigorous, state-level limitation.
2.1. Alaska’s Adoption of the Federal R&D Credit Framework
Alaska does not offer a standalone, state-specific R&D tax credit based on qualified research expenses (QREs).7 Instead, the state allows a credit equivalent to a portion of the credit claimed under the federal tax framework (IRC § 38/§ 41).8 The definition of QREs used by the state is identical to that found in IRC § 41.7
Importantly, the statute permits qualified research activities to be conducted anywhere within the United States; they are not required to take place physically in Alaska.7 The foundation for the Alaska credit claim begins with the federal compliance requirement of filing IRS Form 6765, Credit for Increasing Research Activities, which generates the General Business Credit (GBC) subsequently utilized for state benefit.7
2.2. The Critical Limitation: Alaska’s 18% Rule (15 AAC 20.145)
The most distinctive and financially restrictive element of the Alaska R&D credit is the severe limitation imposed on federal-based credits. Under AS 43.20.021(d) and detailed further in 15 AAC 20.145, any credit allowed under the Internal Revenue Code—including the R&D credit—is capped at 18% of the amount of credit determined for federal income tax purposes.6
This 18% limit is applied only after the federal credit amount has been apportioned to Alaska using the state’s apportionment factor (Form 6390, Line 6).5 This apportionment ensures that only the portion of the federal credit related to economic activity within Alaska is eligible for the state benefit, and even that portion is then heavily discounted by 82%. The resulting low effective tax benefit—for example, a company with a 50% Alaska apportionment factor and a 10% federal credit rate receives a state credit equivalent to only 0.9% of its QREs—suggests that Alaska’s primary policy goal is not aggressive incentive. Rather, the mechanism serves as a nominal offset to minimize potential double taxation on the federal benefit, discouraging R&D location within the state due to the low return on qualified expenditures.
2.3. Alaska’s Legacy Incentive Credit: Analysis of AS 43.20.042
Alaska Statute 43.20.042, which governs the “Special Industrial Incentive Investment Tax Credit,” dictates key rules for credit ordering, even though the provisions for claiming new investments under this section largely sunsetted decades ago.10 Historically, this credit was aimed at substantial in-state capital investments, specifically those incurred in Alaska for the manufacture or modification of tangible personal property used in oil or gas development.11
The statutory language remains relevant for two reasons. First, this specific industrial credit was explicitly exempted from the 18% limitation applicable to other federal-based credits.8 Second, the statute influences the credit ordering system: any outstanding credits generated under AS 43.20.042 are classified as “Alaska incentive credits.” These incentive credits must be utilized against the tax liability derived from Schedule D before the 18%-limited federal-based credits (such as the R&D credit) can be applied.6 This priority system means that a taxpayer utilizing older incentive credit carryforwards will immediately reduce the remaining gross liability calculated on Schedule D, thereby shrinking the available current-year tax base for the R&D credit.
Alaska Federal-Based Credit Limitation (15 AAC 20.145)
| Credit Source | Statutory/Regulatory Basis | Scope of Activity | Alaska Limitation Rule |
| Federal Research Credit (IRC § 41) | 15 AAC 20.145 / IRC § 38 | Qualified Research Expenses (QREs) defined by IRC § 41, U.S.-based. | Limited to 18% of the apportioned federal credit amount. |
| Special Industrial Incentive Tax Credit | AS 43.20.042 | In-state oil/gas infrastructure investment (Largely sunsetted). | Not subject to the 18% limitation. Applied preferentially as an “incentive credit.” |
III. Compliance Protocol: Integrating Form 6390 with Form 6000
Compliance requires a precise workflow involving the calculation of the credit limitation on Form 6390 and its subsequent application against the tax computed on Form 6000, Schedule D.
3.1. Purpose and Requirements of Alaska Form 6390
Alaska Form 6390, “Alaska Federal-based Credits,” is mandatory for any corporation claiming the R&D credit.6 This form operationalizes the 18% limitation and ensures the credit is applied on an “as-if Alaska basis”.6
The form’s structure is designed to facilitate the required constraints. Part I establishes the maximum allowable credit by first aggregating the federal General Business Credit applicable to Alaska (Lines 3-5), multiplying it by the apportionment factor (Line 6), and then applying the 18% limitation (Line 8).5 Additionally, Form 6390 is responsible for managing the corporation’s carryforward and carryback amounts (Lines 9-11), utilizing the federal rule of a 1-year carryback and a 20-year carryforward.7
3.2. Mapping the Calculation: Using Schedule D, Line 2 as the Credit Cap
The integration of the credit with the tax liability is the critical function of Form 6390, Part II. The calculation begins by taking the total gross tax liability, which is derived directly from Form 6000, Schedule D, line 2, and entering it on Form 6390, Line 12a.5 This figure sets the definitive cap for offsetting the regular tax.
Alaska’s tax law dictates that state-specific “Alaska incentive credits” must be applied first.6 These credits (if any are available, typically tracked on Form 6300 3) are entered on Line 12b of Form 6390. This step accounts for the legacy rules surrounding AS 43.20.042, which are prioritized over federal-based benefits. Subtracting the incentive credits from the gross liability yields the “Alaska regular tax after Alaska incentive credits” on Line 12c.5 This residual liability is the precise amount available for offset by the 18%-limited R&D credit calculated in Part I.
The necessity of managing Form 6390 using data derived simultaneously from Schedule D (tax liability) and potentially Form 6300 (other incentive credits) requires meticulous tracking and increases the compliance burden compared to jurisdictions with simpler credit systems.
3.3. Credit Stacking Rules and Offsetting Alternative Minimum Tax (AMT)
The credit utilization hierarchy is rigidly defined: Alaska Incentive Credits must be applied first, fully reducing the tax liability, before the Federal-Based Credits (including the R&D credit) can be applied.
This stacking requirement extends to the Alternative Minimum Tax (AMT). Federal-based credits may offset Alaska AMT only after Alaska incentive credits have been fully applied against both the regular tax and the AMT liability.5 This ensures that the state maintains preference for utilizing its own incentive programs first, dictating a highly complex order of operations for corporate tax offset.
Credit Application Sequence and Limitation Flow
| Step | Purpose | Source Data / Form 6390 Line | Impact on Schedule D Tax |
| 1: Establish Gross Tax | Determine the full tax liability. | Form 6000, Schedule D, Line 2 (Alaska Regular Tax) | Defines the overall cap for all non-refundable credits. |
| 2: Apply Incentive Credits | Apply priority, typically non-18% limited, state credits. | Form 6390, Line 12b (Alaska Incentive Credits) | Reduces the liability remaining for federal-based credits. |
| 3: Establish Offset Base | Calculate remaining regular tax liability. | Form 6390, Line 12c (Regular Tax After Incentives) | Sets the immediate ceiling for R&D credit utilization. |
| 4: Apply R&D Credit | Apply the 18% limited, apportioned R&D credit. | Form 6390, Line 11 (Total Apportioned GBC) | Offsets the liability established in Step 3, up to the ceiling. |
IV. Detailed Case Study and Numerical Example
This scenario demonstrates the practical application of the 18% rule, apportionment, and credit stacking relative to the gross tax liability established on Schedule D.
4.1. Example Scenario: Establishing the Available Credit
Assume Aurora Corp. reports the following information for the current tax year:
- Federal QREs (IRC § 41): $2,000,000
- Federal R&D Credit Generated (Form 3800): $200,000
- Alaska Apportionment Factor: 40%
Calculation Steps (Form 6390, Part I):
- Federal GBC Applicable to Alaska (Line 5): $200,000
- Apportionment (Line 7): $\$200,000 \times 40\% = \$80,000$
- Alaska Federal-Based Credit (18% Limit) (Line 8): $\$80,000 \times 18\% = \mathbf{\$14,400}$
Aurora Corp. has generated a maximum of $14,400 in R&D credit available for the tax year.
4.2. Integrating the Final Credit into Form 6000 (Tax Offset Demonstration)
Next, the available credit is tested against the liability:
- Scenario Additions:
- Alaska Taxable Income: $300,000
- Alaska Regular Tax (Form 6000, Schedule D, Line 2): $17,500 (Gross tax liability)
- Prior Alaska Incentive Credits (e.g., carryforward from AS 43.20.042 used): $5,000
Utilization Steps (Form 6390, Part II):
- Alaska Regular Tax (Schedule D, Line 2): $17,500 (Form 6390, Line 12a)
- Alaska Incentive Credits Used (Priority): $5,000 (Form 6390, Line 12b)
- Remaining Regular Tax Liability (Line 12c): The tax offset base remaining is $\$17,500 – \$5,000 = \mathbf{\$12,500}$.
- Allowable R&D Credit Claimed: The available R&D credit ($14,400) is limited by the remaining liability ($12,500). Allowable claim is $\mathbf{\$12,500}$.
- Unused Credit (Carryforward): The excess credit is $\$14,400 – \$12,500 = \mathbf{\$1,900}$. This amount is carried forward for up to 20 years.7
R&D Credit Calculation and Offset Flow Example (Aurora Corp.)
| Calculation Step | Source Data / Form 6390 Line | Value | Purpose |
| Federal GBC (IRC § 38) | Federal Form 3800 | $200,000 | Total credit generated. |
| Alaska Apportionment Factor | Form 6000, Schedule I | 40% | Portion of GBC attributed to Alaska. |
| Alaska Federal-Based Credit (18% Limit) | Line 8 | $14,400 | Maximum R&D Credit available for use/carryforward. |
| Alaska Regular Tax Liability | Form 6000, Schedule D, Line 2 | $17,500 | Gross tax ceiling before any credits. |
| Alaska Incentive Credits Used | Line 12b | $5,000 | Priority credits applied first. |
| Remaining Regular Tax Liability | Line 12c | $12,500 | Max R&D offset available for the current year. |
| Allowable R&D Credit Claimed | Limited by Line 12c Cap | $12,500 | Credit applied to offset tax. |
| Carryforward Amount | Calculated on Form 6390 | $1,900 | Available for 20-year carryforward. |
V. Conclusion and Strategic Compliance Recommendations
The analysis confirms that while Alaska formally provides a mechanism for claiming an R&D tax credit, the economic incentive is significantly restricted by regulatory constraints. The entire compliance flow pivots on the accurate determination of the gross tax liability established on Form 6000, Schedule D.
The importance of Schedule D (Form 6000) is purely structural: the calculated tax liability dictates the size of the window for credit utilization. The strict credit stacking requirement—prioritizing Alaska Incentive Credits over the 18%-limited federal-based R&D credit—further complicates compliance and often results in immediate credit limitations, necessitating robust tracking of the 20-year carryforward potential.
Tax planning in Alaska must treat the R&D credit as an 18% rebate on the apportioned federal credit, recognizing that the state is not attempting to compete with jurisdictions offering more aggressive incentives. Taxpayers are advised to focus efforts on meticulous documentation for the federal Form 6765, as this directly feeds the limited Alaska credit, and to ensure rigorous internal controls are in place to manage the lengthy carryforward periods resulting from the low effective utilization rate.
Are you eligible?
Why choose us?
Pass an Audit?
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.
Never miss a deadline again
Stay up to date on IRS processes
Discover R&D in your industry
R&D Tax Credit Preparation Services
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.
R&D Tax Credit Audit Advisory Services
creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.
Our Fees
Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
Choose your state
