An Act establishing an income tax on certain entities in the state; and providing for an effective date.

This bill establishes a new income tax in Alaska for certain businesses, specifically those categorized as ‘qualified entities’ such as sole proprietorships, partnerships, and LLCs. If a qualified entity’s taxable income exceeds $25 million, it will be subject to a 9.4% tax on that excess income. The tax is calculated using methods similar to those applied to C corporations, and certain deductions and credits are permitted. The bill also modifies existing tax filing requirements and repeals specific sections of the Alaska Tax Code.