R&D TAX CREDIT: ALASKA
The state of Alaska provides a state credit equal to 18% of the federal R&D tax credit apportioned to Alaska. The research credit applies to businesses that qualify for the federal R&D credit under IRC §41. The R&D credit is claimed against Alaska corporate income tax liability.
R&D Credit Eligibility
- Entities: C-Corporations, S-Corporations, LLCs, Partnerships (sole proprietorships generally do not qualify).
- Must be eligible for the federal R&D credit and file Alaska Form 6390 with the state return.
- Qualified research expenses (QREs) follow the federal definition under IRC §41.
- Activities do not need to occur in Alaska, but must be within the U.S.
R&D Credit Details
- Alaska R&D credit amount: 18% of the federal credit apportioned to Alaska.
- Carry back 1 year, carry forward 20 years.
- Non-refundable credit (cannot generate a refund).
- Cannot offset Alaska Alternative Minimum Tax until other incentive credits are applied.
R&D Tax Credit Case Study
Credit amounts for a company in Anchorage, Alaska with $1,300,000 in qualified research expenses:
- Federal R&D Credit: $130,000
- Alaska R&D Credit: $23,400 (18% of federal credit)
How we help Alaska taxpayers
ICS Tax can prepare all necessary documentation to support the credit, calculate the amount of the credit, and draft necessary compliance. In the event of an IRS audit, we can help support your credit.