TAX EXEMPTION: PORT MACKENZIE CORPS

Plain English Breakdown

The phrase 'primarily operating' is used in the law but not defined, leaving some uncertainty about which specific corporations qualify.

Tax Exemption for Port MacKenzie Corporations

This bill creates a net corporate income tax exemption for corporations primarily operating in Port MacKenzie that will end on July 1, 2035.

What This Bill Does

• Creates an exemption from the state's net corporate income tax for corporations primarily operating in Port MacKenzie.
• Amends Alaska Statute AS 43.20.012 by adding a new subsection (e) to establish this rule.
• Sets the start date of the tax break to take effect immediately upon passage.
• Schedules the repeal of this exemption to happen on July 1, 2035.

Who It Names or Affects

• Corporations that primarily operate in Port MacKenzie

Terms To Know

Net Corporate Income Tax Exemption

A rule that allows a corporation to not pay the tax imposed under this chapter.

Repeal

The act of officially ending or removing a law at a specific future date.

Limits and Unknowns

• The bill does not define exactly what 'primarily operating' means for these corporations.
• The official text provided does not specify the amount of tax revenue impact.

Official Summary Text

TAX EXEMPTION: PORT MACKENZIE CORPS
An Act establishing a net corporate income tax exemption for entities in Port MacKenzie; and providing for an effective date.

Current Bill Text

SB0175A -1- SB 175
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0817\A

SENATE BILL NO. 175

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY SENATOR YUNDT

Introduced: 4/15/25
Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED

"An Act establishing a net corporate income tax exemption for e ntities in Port 1
MacKenzie; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 43.20.012 is amended by adding a new subsection to read: 4
(e) A corporation primarily operating in Port MacKenzie is exe mpt from the 5
tax imposed under this chapter. 6
* Sec. 2. AS 43.20.012(e) is repealed. 7
* Sec. 3. Section 1 of this Act takes effect immediately under AS 01.10.070(c). 8
* Sec. 4. Section 2 of this Act takes effect July 1, 2035. 9