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Alaska2026Passed Legislature

HB350

Alaska Qualified Entity Income Tax

Last scannedSep 10, 2026, 12:32 AM

In one sentence

This bill creates a new state income tax for specific business types that earn more than $25 million in a year.

What it does

  • Requires qualified entities with taxable income over $25,000,000 to pay a 9.4% tax on the amount above that limit.
  • Calculates taxable income as if these businesses were C corporations under federal rules from January 1, 2026.
  • Prevents taxpayers from using most federal tax credits or deductions against this new state tax liability.
  • Allows the Department of Revenue to combine the income of multiple related entities for tax calculation purposes.
  • Permits a deduction for payments made by these businesses to their owners if those owners also pay taxes under this chapter.

Who it affects

  • Sole proprietorships with taxable income over $25,000,000
  • Partnerships and limited liability companies (LLCs) meeting the income threshold
  • Entities that have elected to file federal returns under specific Internal Revenue Code sections

Limits and unknowns

  • The tax does not apply to corporations already taxed under AS 43.20.011 or their related unitary businesses.
  • This law only applies to tax years beginning on or after January 1, 2027.

Plain language

Terms to know

Qualified entity
A sole proprietorship, partnership, limited liability company, or an entity filing federal returns under certain tax code rules.
Unitary business
Multiple entities that are connected and treated as a single group for calculating taxable income.

Official record

Sources

Validated

Official summary

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

Official activity

Bill history

  1. (H) REFERRED TO FINANCE2352
  2. (H) FN1: (REV)2352
  3. (H) NR: FRIER2352
  4. (H) DNP: COULOMBE, SADDLER2352
  5. (H) DP: CARRICK, HALL, FIELDS2352
  6. (H) L&C RPT CS(L&C) 3DP 2DNP 1NR2352
  7. (H) Moved CSHB 350(L&C) Out of Committee -- Delayed to 5 min. Following Session --Text
  8. (H) LABOR & COMMERCE at 03:15 PM BARNES 124Text
  9. (H) COSPONSOR(S): HALL2292
  10. (H) Heard & HeldText
  11. (H) LABOR & COMMERCE at 03:15 PM BARNES 124Text
  12. (H) Heard & HeldText
  13. (H) LABOR & COMMERCE at 03:15 PM BARNES 124Text
  14. (H) <Bill Hearing Canceled> -- Meeting Postponed from 3:15 pm 4/13/2026--Text
  15. (H) LABOR & COMMERCE at 08:00 AM BARNES 124Text
  16. (H) -- Public Testimony -- -- Meeting Postponed to 8:00 am 4/15/2026--Text
  17. (H) LABOR & COMMERCE at 03:15 PM BARNES 124Text
  18. (H) -- Public Testimony -- -- MEETING CANCELED --Text
  19. (H) LABOR & COMMERCE at 03:15 PM BARNES 124Text
  20. (H) Heard & HeldText