Alaska Payroll Tax Credits for R&D
Find out if you qualify for R&D tax credits in Alaska and recharge your business
Alaska provides a research and development credit. If the taxpayer is allowed to claim the federal research and development credit under IRC § 41 for federal tax purposes, the credit is also allowed on the taxpayer's Alaska return, but is limited to 18% of the amount of the federal credit apportioned to Alaska. The credit is claimed on AK Form 6390.
Learn more about Alaska's R&D Tax Credit law here.
R&D Tax Credit Available:
C-Corporation, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Due with Alaska Tax Return
Data Required to Compute Credit:
Federal Form 6765 or Form 3800
Unused federal-based credits may be carried back 1 year and forward for up to 20 years.
The R&D tax credit equals:
- 18% of the calculated federal IRC Section 38-eligible tax credits, which includes the R&D Credit
- The definition of qualified research expenses is the same as under IRC § 41.
- Qualified activities need not be conducted in Alaska to qualify, but must be conducted within the United States.
Specific Items to Note:
- To claim the credit, a company must file Alaska Form 6390 – Alaska Federal-based Credits along with its state tax return.
- Federal-based credits may offset Alaska alternative minimum tax (AMT) only after Alaska incentive credits are applied.