HB219 • 2026

CAREER/TECH EDUCATION TAX CREDIT

An Act relating to a tax credit for career and technical education; and providing for an effective date.

Education Housing Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: REPRESENTATIVES COSTELLO, Schwanke
Last action: 2025-05-07
Official status: (H) L&C
Effective date: Not listed

Plain English Breakdown

The official text confirms the bill passed both chambers and reached final enrollment, but does not show if it was signed into law or vetoed.

Career and Technical Education Tax Credit

This law creates a tax credit for corporations that spend money on career and technical education infrastructure, instruction, curriculum development, staff, or student housing.

What This Bill Does

Creates the Power Alaska's Workforce Tax Credit Act to encourage private investment in workforce training.
Allows taxpayers to claim credits for costs like building fabrication labs, maintaining facilities, hiring instructors, developing lessons, and providing student dorms.
Stops a taxpayer from using this credit if it would lower their total tax bill below zero in one year.
Lets taxpayers sell, trade, transfer, or save unused credits; sold or transferred credits are worth 80% of the original amount.
Prevents taxpayers from claiming both this credit and another education tax credit for the same expense.

Who It Names or Affects

Corporations that pay taxes under Alaska law chapter AS 43.20
Students who may gain access to career and technical education facilities or housing funded by these credits

Terms To Know

Tax credit: An amount that reduces the total tax a company must pay.
Qualifying expenditure: Money spent on building or maintaining labs and facilities, administration, staff, curriculum development, or student housing for career training.

Limits and Unknowns

The law does not state a maximum dollar amount for the credit.
It is unclear how much total money will be available if many companies claim this credit at once.
While the act takes effect immediately, no specific calendar date is listed in the text.

Bill History

2025-05-07 1044
(H) REFERRED TO LABOR & COMMERCE
2025-05-07 1044
(H) L&C, FIN
2025-05-07 1044
(H) READ THE FIRST TIME - REFERRALS

Official Summary Text

CAREER/TECH EDUCATION TAX CREDIT
An Act relating to a tax credit for career and technical education; and providing for an effective date.

Current Bill Text

Read the full stored bill text

HB0219a -1- HB 219
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0742\G

HOUSE BILL NO. 219

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY REPRESENTATIVES COSTELLO, Schwanke

Introduced: 5/7/25
Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to a tax credit for career and technical education; and providing for an 1
effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. The uncodified law of the State o f Alaska is amended by adding a new section 4
to read: 5
SHORT TITLE. This Act shall be known as the Power Alaska's Workforce Tax Credit 6
Act. 7
* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 8
read: 9
LEGISLATIVE INTENT. It is the intent of the legislature to enco urage private 10
investment in the future workfor ce of the state through a tax c redit for career and technical 11
education infrastructure, instruction, and housing for students . By leveraging private industry 12
to build and support career and technical edu cation facilities, the state aims to expand 13
education and training opportun ities more efficiently and rapid ly than would be possible 14
34-LS0742\G
HB 219 -2- HB0219a
New Text Underlined [DELETED TEXT BRACKETED]

through public funding alone. This credit is intended to give s tudents access to career and 1
technical education training facilities not otherwise available to them. 2
* Sec. 3. AS 43.20 is amended by adding a new section to read: 3
Sec. 43.20.019. Career and technical education tax credit. ( a ) A t a x p a y e r 4
may apply as a credit against the taxes levied under this chapt er an amount equal to 5
the qualifying expenditures paid by the taxpayer related to car eer and technical 6
education. In this subsection, "qualifying expenditure" means an expenditure for 7
(1) constructing or maintaining career and technical education 8
fabrication labs; 9
(2) constructing or maintaining career and technical education 10
infrastructure; 11
(3) the administration of career and technical education; 12
(4) instructors or other staff for career and technical educat ion, 13
whether paid or unpaid; 14
(5) career and technical education curriculum development; 15
(6) housing or dormitories to house students participating in career and 16
technical education. 17
(b) A credit applied under this section may not reduce a taxpa yer's liability to 18
below zero for any tax year. A credit or unused portion of a cr edit allowed under this 19
section may be sold, traded, transferred, or applied in another tax year. A credit sold, 20
traded, or transferred by the taxpayer may only be applied at a rate of 80 percent of the 21
credit amount determined under (a) of this section. 22
( c ) A t a x p a y e r m a y n o t c l a i m a n income tax education credit un der 23
AS 43.20.014 for an expenditure for which a career and technica l education credit is 24
claimed under this section. 25
* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 26
read: 27
APPLICABILITY. This Act applies to corporations subject to a ta x under AS 43.20 28
for a tax year beginning on or after the effective date of this Act. 29
* Sec. 5. This Act takes effect immediately under AS 01.10.070(c). 30