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(a) For tax years beginning after June 30, 1980, a taxpayer may apply as a credit against his tax liability computed under AS 43.20 18 percent of the investment credit allowed under Internal Revenue Code section 38 upon only the first $20,000,000 of qualified investment put into use in the state for each taxable year.
(b) For calendar year 1980 and for any fiscal tax year which includes July 1, 1980, expenditures made before July 1, 1980 shall be used in calculating the credit upon only the first $500,000 of qualified investment put into use. Expenditures made after June 30, 1980 must be used in calculating the credit upon only the first $20,000,000 of qualified investment put into use in the state. For tax years which include July 1, 1980, the total qualified investment upon which credit may be claimed may not exceed $20,000,000 under any circumstances.
(c) Expenditures qualifying for the investment credit and subject to the $20,000,000 limitation must
(1) qualify for federal investment credit under section 38 of the Internal Revenue Code;
(2) be cash expenditures or binding payment agreements entered into after June 30, 1980; and
(3) be made for assets placed in service in the state.
(d) For purposes of this section, "placed in service in the state" means that the first use of the qualified investment is in this state. If the property is used elsewhere in the taxable year of acquisition and brought to this state during that same year, that property is considered used property and is subject to the limitations as provided in the Internal Revenue Code. If the property is to be used elsewhere during the taxable year of acquisition and brought to this state in another taxable year, the property does not qualify for the investment credit. Transportation equipment used within and outside of this state whose use commences in this state is considered new property. The qualified expenditure for interstate transportation equipment must be based on a prorated formula of days used in this state compared to days used elsewhere.
(e) The recapture of any credit taken must be done under Internal Revenue Code section 47 and must apply when the property is sold, transferred, abandoned, or removed from the state. Transportation equipment used in interstate transportation in this state on a regular basis which originally qualified for investment credit but which is subsequently not used in this state on a regular basis is subject to the recapture provisions of Internal Revenue Code section 47 at that subsequent time.
History: Eff. 6/2/82, Register 82
Authority: AS 43.05.080
Sec. 24, ch. 117,
SLA 1981
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Last modified 7/05/2006