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

Checked against official source text during the last sync.

Career and Technical Education Tax Credit

This act creates a tax credit for businesses that invest in career and technical education facilities, infrastructure, staff, curriculum development, and student housing.

What This Bill Does

Creates a new section in the Alaska Statutes to allow taxpayers to claim a credit against their taxes for certain expenditures related to career and technical education.
Defines 'qualifying expenditure' as costs associated with building or maintaining fabrication labs, infrastructure, administration, staff salaries, curriculum development, and providing student housing.
Limits the tax credit so it cannot reduce a taxpayer's liability below zero in any given year but allows unused portions of the credit to be carried over to future years or sold/traded at 80% of its value.
Prohibits taxpayers from claiming both this new career and technical education credit and an existing income tax education credit for the same expenditure.

Who It Names or Affects

Businesses that invest in career and technical education facilities, infrastructure, staff, curriculum development, or student housing can claim a tax credit.
Taxpayers who already claim other education credits will be affected by restrictions on claiming both types of credits for the same expenditure.

Terms To Know

Qualifying Expenditure: Money spent on building or maintaining career and technical education facilities, hiring staff, developing curriculum, and providing student housing.
Tax Credit: A reduction in the amount of tax a person or business owes to the government based on certain expenses or investments.

Limits and Unknowns

The bill does not specify an effective date, meaning it is unclear when businesses can start claiming this new tax credit.
It is uncertain how many businesses will qualify for and take advantage of this tax credit.

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