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SB1003 • 2026

EDUCATION TAX CREDITS

An Act relating to tax credits for contributions to public schools and programs operated by tribal entities or tribally empowered Alaska Native organizations through a compact with the state; relating to tax credits for contributions to state-funded literacy programs; relating to the insurance tax education credit, the income tax education credit, the oil or gas producer education credit, the property tax education credit, the mining business education credit, the fisheries business education credit, and the fisheries resource landing tax education credit; and providing for an effective date.

Education Energy Taxes
Passed Legislature

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

Sponsor
SENATE RULES BY REQUEST OF THE GOVERNOR
Last action
2025-08-02
Official status
(S) FIN
Effective date
Not listed

Plain English Breakdown

The official text lists an effective date provision but does not state a specific calendar date in the provided excerpts.

Alaska Education Tax Credits Expansion

This bill allows taxpayers to claim credits on several state taxes by donating cash or equipment to public schools, tribal programs with a state compact, and state-funded literacy programs.

What This Bill Does

  • Allows contributions of cash or equipment to be accepted as tax credit bases for specific education-related donations.
  • Permits donations to go toward public schools run by tribes or Alaska Native organizations that have a compact agreement with the state.
  • Permits contributions to literacy programs funded and administered by the Department of Education and Early Development.
  • Raises the combined limit on these education tax credits from $3,000,000 to $10,000,000 for all eligible taxpayers in a single year.
  • Applies these donation rules across multiple existing taxes including insurance, income, oil and gas producer, property, mining business, fisheries business, and fisheries resource landing taxes.

Who It Names or Affects

  • Taxpayers who pay Alaska state taxes such as the corporate income tax or specific industry taxes.
  • Public schools operated by tribal entities or tribally empowered Alaska Native organizations through a compact with the state.
  • State-funded literacy programs administered by the Department of Education and Early Development.

Terms To Know

Tax Credit
An amount that reduces the total tax a person or business must pay to the government dollar for dollar.
Affiliated Group
A set of related businesses treated as one unit when calculating their combined limit on tax credits, defined in AS 43.20.145.

Limits and Unknowns

  • The bill does not specify the exact date it will take effect.
  • A single contribution cannot be used to claim a credit under more than one of these education programs at the same time.
  • For taxpayers in an affiliated group, the total amount of credits claimed across all listed taxes may not exceed $10,000,000 for the entire group.

Bill History

  1. 2025-08-02 1430

    (S) REFERRED TO FINANCE

  2. 2025-08-02 1430

    (S) GOVERNOR'S TRANSMITTAL LETTER

  3. 2025-08-02 1430

    (S) FN3: ZERO(EED/FUND CAP)

  4. 2025-08-02 1430

    (S) FN2: INDETERMINATE(REV)

  5. 2025-08-02 1430

    (S) FN1: ZERO(EED)

  6. 2025-08-02 1430

    (S) FIN

  7. 2025-08-02 1430

    (S) READ THE FIRST TIME - REFERRALS

Official Summary Text

EDUCATION TAX CREDITS
An Act relating to tax credits for contributions to public schools and programs operated by tribal entities or tribally empowered Alaska Native organizations through a compact with the state; relating to tax credits for contributions to state-funded literacy programs; relating to the insurance tax education credit, the income tax education credit, the oil or gas producer education credit, the property tax education credit, the mining business education credit, the fisheries business education credit, and the fisheries resource landing tax education credit; and providing for an effective date.

Current Bill Text

Read the full stored bill text 
SB1003A -1- SB 1003
New Text Underlined [DELETED TEXT BRACKETED]

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SENATE BILL NO. 1003

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SPECIAL SESSION

BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR

Introduced: 8/2/25
Referred: Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to tax credits for contributions to public sch ools and programs 1
operated by tribal entities or tribally empowered Alaska Native organizations through a 2
compact with the state; relating to tax credits for contributio ns to state-funded literacy 3
programs; relating to the insurance tax education credit, the i ncome tax education 4
credit, the oil or gas producer education credit, the property tax education credit, the 5
mining business education credit, the fisheries business educat ion credit, and the 6
fisheries resource landing tax education credit; and providing for an effective date." 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8
* Section 1. AS 21.96.070(a) is amended by adding new paragraphs to read: 9
(14) contributions of cash or e quipment accepted by a public school or 10
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 11
organization through a compact with the state; 12
(15) contributions of cash or equipment to a state-funded lite racy 13
34-GS4380\A
SB 1003 -2- SB1003A
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program administered by the Department of Education and Early Development. 1
* Sec. 2. AS 21.96.070(d) is amended to read: 2
(d) A contribution claimed as a credit under this section may not 3
(1) be the basis for a credit claimed under another provision of this 4
title; and 5
(2) when combined with contributions that are the basis for cr edits 6
taken during the taxpayer's tax year under AS 43.20.014, AS 43. 55.019, 7
AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, resu lt in the total 8
amount of credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a member of 9
an affiliated group, then the total amount of credits may not e xceed $10,000,000 10
[$3,000,000] for the affiliated gr oup; in this paragraph, "affi liated group" has the 11
meaning given in AS 43.20.145. 12
* Sec. 3. AS 43.20.014(a) is amended by adding new paragraphs to read: 13
(20) contributions of cash or e quipment accepted by a public school or 14
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 15
organization through a compact with the state; 16
(21) contributions of cash or equipment to a state-funded lite racy 17
program administered by the Department of Education and Early Development. 18
* Sec. 4. AS 43.20.014(d) is amended to read: 19
(d) A contribution claimed as a credit under this section may not 20
(1) be the basis for a credit claimed under another provision of this 21
title; 22
(2) also be allowed as a deduc tion under 26 U.S.C. (Internal R evenue 23
Code) against the tax imposed by this chapter; and 24
(3) when combined with contributions that are the basis for cr edits 25
taken during the taxpayer's tax year under AS 21.96.070, AS 43. 55.019, 26
AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, resu lt in the total 27
amount of credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a member of 28
an affiliated group, then the total amount of credits may not e xceed $10,000,000 29
[$3,000,000] for the affiliated gr oup; in this paragraph, "affi liated group" has the 30
meaning given in AS 43.20.145. 31
34-GS4380\A
SB1003A -3- SB 1003
New Text Underlined [DELETED TEXT BRACKETED]

* Sec. 5. AS 43.55.019(a) is amended by adding new paragraphs to read: 1
(15) contributions of cash or e quipment accepted by a public school or 2
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 3
organization through a compact with the state; 4
(16) contributions of cash or equipment to a state-funded lite racy 5
program administered by the Department of Education and Early Development. 6
* Sec. 6. AS 43.55.019(d) is amended to read: 7
(d) A contribution claimed as a credit under this section may not 8
(1) be the basis for a credit claimed under another provision of this 9
title; and 10
(2) when combined with contributions that are the basis for cr edits 11
taken during the taxpayer's tax year under AS 21.96.070, AS 43. 20.014, 12
AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, resu lt in the total 13
amount of credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a member of 14
an affiliated group, then the total amount of credits may not e xceed $10,000,000 15
[$3,000,000] for the affiliated gr oup; in this paragraph, "affi liated group" has the 16
meaning given in AS 43.20.145. 17
* Sec. 7. AS 43.56.018(a) is amended by adding new paragraphs to read: 18
(15) contributions of cash or e quipment accepted by a public school or 19
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 20
organization through a compact with the state; 21
(16) contributions of cash or equipment to a state-funded lite racy 22
program administered by the Department of Education and Early Development. 23
* Sec. 8. AS 43.56.018(d) is amended to read: 24
(d) A contribution claimed as a credit under this section may not 25
(1) be the basis for a credit claimed under another provision of this 26
title; and 27
(2) when combined with contributions that are the basis for cr edits 28
taken during the taxpayer's tax year under AS 21.96.070, AS 43. 20.014, 29
AS 43.55.019, AS 43.65.018, AS 43.75.018, or AS 43.77.045, resu lt in the total 30
amount of credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a member of 31
34-GS4380\A
SB 1003 -4- SB1003A
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an affiliated group, then the total amount of credits may not e xceed $10,000,000 1
[$3,000,000] for the affiliated gr oup; in this paragraph, "affi liated group" has the 2
meaning given in AS 43.20.145. 3
* Sec. 9. AS 43.65.018(a) is amended by adding new paragraphs to read: 4
(20) contributions of cash or e quipment accepted by a public school or 5
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 6
organization through a compact with the state; 7
(21) contributions of cash or equipment to a state-funded lite racy 8
program administered by the Department of Education and Early Development. 9
* Sec. 10. AS 43.65.018(d) is amended to read: 10
(d) A contribution claimed as a credit under this section may not 11
(1) be the basis for a credit claimed under another provision of this 12
title; and 13
(2) when combined with contributions that are the basis for cr edits 14
taken during the taxpayer's tax year under AS 21.96.070, AS 43. 20.014, 15
AS 43.55.019, AS 43.56.018, AS 43.75.018, or AS 43.77.045, resu lt in the total 16
amount of the credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a 17
member of an affiliated group, then the total amount of credits may not exceed 18
$10,000,000 [$3,000,000] for the affiliated group; in this paragraph, "aff iliated group" 19
has the meaning given in AS 43.20.145. 20
* Sec. 11. AS 43.75.018(a) is amended by adding new paragraphs to read: 21
(20) contributions of cash or e quipment accepted by a public school or 22
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 23
organization through a compact with the state; 24
(21) contributions of cash or equipment to a state-funded lite racy 25
program administered by the Department of Education and Early Development. 26
* Sec. 12. AS 43.75.018(d) is amended to read: 27
(d) A contribution claimed as a credit under this section may not 28
(1) be the basis for a credit claimed under another provision of this 29
title; and 30
(2) when combined with contributions that are the basis for cr edits 31
34-GS4380\A
SB1003A -5- SB 1003
New Text Underlined [DELETED TEXT BRACKETED]

taken during the taxpayer's tax year under AS 21.96.070, AS 43. 20.014, 1
AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.77.045, resu lt in the total 2
amount of the credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a 3
member of an affiliated group, then the total amount of credits may not exceed 4
$10,000,000 [$3,000,000] for the affiliated group; in this paragraph, "aff iliated group" 5
has the meaning given in AS 43.20.145. 6
* Sec. 13. AS 43.77.045(a) is amended by adding new paragraphs to read: 7
(20) contributions of cash or e quipment accepted by a public school or 8
program that is operated by a t ribal entity or a tribally empow ered Alaska Native 9
organization through a compact with the state; 10
(21) contributions of cash or equipment to a state-funded lite racy 11
program administered by the Department of Education and Early Development. 12
* Sec. 14. AS 43.77.045(d) is amended to read: 13
(d) A contribution claimed as a credit under this section may not 14
(1) be the basis for a credit claimed under another provision of this 15
title; and 16
(2) when combined with contributions that are the basis for cr edits 17
taken during the taxpayer's tax year under AS 21.96.070, AS 43. 20.014, 18
AS 43.55.019, AS 43.56.018, AS 43.65.018, or AS 43.75.018, resu lt in the total 19
amount of the credits exceeding $10,000,000 [$3,000,000]; if the taxpayer is a 20
member of an affiliated group, then the total amount of credits may not exceed 21
$10,000,000 [$3,000,000] for the affiliated group; in this paragraph, "aff iliated group" 22
has the meaning given in AS 43.20.145. 23
* Sec. 15. This Act takes effect January 1, 2026. 24