Alaska R&D Tax Credit Glossary Overview
Answer Capsule: The Alaska Research and Development (R&D) Tax Credit allows corporations to claim a credit against state income tax for qualified research activities conducted within Alaska. Governed by Alaska Statute 43.20.021(d) and claimed via Form 6390, the credit generally mirrors federal IRC Section 41 provisions but is limited to expenditures attributable to the state. Key components include the 18% limitation on tax liability, the Form 6000 series for compliance, and specific provisions for the oil and gas service industry. This glossary outlines essential terms for navigating Alaska's corporate innovation incentives.
| Glossary Term | Definition |
|---|---|
| Alaska Statute 43.20.021(d) | Legal provision adopting the Internal Revenue Code for calculating Alaska corporate income tax and credits. |
| Form 6390 | Official Alaska tax form filed to calculate and claim the Research and Development Tax Credit. |
| Alaska Federal-Based Credits | State tax credits calculated based on federal credit amounts, adjusted for Alaska-specific activities. |
| 18% Limitation | A statutory cap limiting the R&D credit usage to 18% of the corporation's tax liability. |
| Attributable to Alaska | Requirement that only research expenses incurred physically within Alaska qualify for the state credit. |
| Form 6000 | The primary Alaska Corporate Net Income Tax Return form where total tax liability is reported. |
| Schedule H (Form 6000) | Schedule used to reconcile and report various tax credits against the corporate tax liability. |
| Alaska Administrative Code 15 AAC 20.145 | Administrative rules providing detailed guidance on the application and apportionment of tax credits. |
| One-Year Carryback Provision | Allows unused R&D credits to be applied to the tax liability of the preceding year. |
| Twenty-Year Carryforward Provision | Permits unused R&D tax credits to be carried forward for up to twenty future tax years. |
| Non-Refundable Credit | A tax credit that can reduce tax liability to zero but cannot generate a cash refund. |
| Alaska Education Tax Credit | Separate incentive for contributions to Alaska educational institutions, distinct from the R&D tax credit. |
| Form 6310 | Tax form used to claim the Education Tax Credit for contributions to qualified Alaska institutions. |
| Alaska Statute 43.20.014 | Statute governing the income tax rates and specific credit applications for corporations in Alaska. |
| Qualified Research Contribution | Donations made to eligible institutions for scientific research that may qualify for tax incentives. |
| University of Alaska Foundation | A key recipient entity for educational contributions eligible for specific Alaska tax credits. |
| Accredited Alaska College | Higher education institutions in Alaska where contributions qualify for the Education Tax Credit. |
| Direct Instruction and Research | Requirement that educational contributions must support direct instruction or research activities to qualify. |
| Alaska Statute 43.20.049 | Statutory provision outlining specific corporate tax incentives and their limitations within the state code. |
| Qualified Oil and Gas Service Industry Expenditure | Expenses related to oil and gas services in Alaska that qualify for specific industry credits. |
| Form 6300 | The incentive credit form used to summarize and claim various Alaska incentive tax credits. |
| Alaska Incentive Credits | A category of tax credits, including R&D, designed to stimulate economic activity within Alaska. |
| Alaska Net Income Tax Act | The comprehensive legislation governing the taxation of net income for corporations operating in Alaska. |
| Internal Revenue Code Conformity | Alaska's alignment with federal tax laws (IRC) for defining qualified research and expenses. |
| IRC Section 41 Adoption | Alaska's specific adoption of the federal Section 41 rules for calculating the R&D credit. |
| IRC Section 38 Adoption | Adoption of federal rules regarding general business credits, applicable to Alaska tax calculations. |
| Form 6395 | Form used to calculate limitations on credits arising from passive activities within the state. |
| Alaska Passive Activity Limitation | Rules restricting the use of credits from passive business activities against active income tax liability. |
| Alternative Minimum Tax (AMT) Offset | Regulations determining if and how R&D credits can be used to offset Alternative Minimum Tax. |
| Alaska Statute 43.20.036(b) | Specific statute addressing the treatment and application of the research and development tax credit. |
| Apportionment of Federal Credit | Method for determining the Alaska-specific portion of the federal R&D credit based on state activity. |
| Alaska Taxable Income | The portion of a corporation's income that is subject to tax by the state of Alaska. |
| Unitary Business Group | A group of related corporations filed as a single entity for Alaska income tax purposes. |
| Combined Reporting | Tax filing method requiring unitary groups to combine income and apportionment factors for tax calculation. |
| Water's Edge Election | Election allowing multinational groups to exclude foreign affiliates from their Alaska combined tax report. |
| Intercompany Eliminations | Removal of transactions between members of a unitary group to prevent double counting of income/expenses. |
| Schedule A (Form 6000) | Schedule for reporting net income and adjustments for the consolidated Alaska corporate tax return. |
| Schedule D (Form 6000) | Schedule used to calculate Alaska net income tax, including the application of tax rates. |
| Schedule E (Form 6000) | Form used to detail apportionment factors like property, payroll, and sales to establish Alaska nexus. |
| Form 6220 | Form for designating the responsible party and granting power of attorney for tax matters. |
| Underpayment of Estimated Tax | Penalties or calculations related to failing to pay sufficient estimated taxes throughout the year. |
| Alaska Department of Revenue | The state agency responsible for administering Alaska's tax laws and collecting corporate income taxes. |
| Tax Credit Certificate | Official document issued by the state certifying the approval and amount of a tax credit. |
| Transferable Tax Credit | A credit that can be sold or assigned to another taxpayer if the original claimant cannot use it. |
| Alaska Statute 43.55.023 | Statute pertaining specifically to tax credits available for oil and gas production and exploration. |
| Qualified Capital Expenditure | Capital costs incurred for equipment or facilities that may be eligible for specific state investment credits. |
| Middle Earth Oil and Gas Tax Credits | Incentives targeting "Middle Earth" basins (Cook Inlet) to encourage exploration outside the North Slope. |
| Ordering of Credits | The mandatory sequence in which different tax credits must be applied against the tax liability. |
| Specific Credits Basket | Grouping of certain tax credits that share common limitations or application rules within the tax form. |
| General Business Credit Basket | The collection of business-related credits, including R&D, subject to aggregate limitations under tax law. |
