Alaska Tax Credits for R&D

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. 

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R&D Tax Credit Available:

Yes

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Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships

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Deadline for Tax Filing:

Due with Alaska Tax Return

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Data Required to Compute Credit:

Federal Form 6765 or Form 3800

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Credit Carryforward:

Unused federal-based credits may be carried back 1 year and forward for up to 20 years.

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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.

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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.