Section 27.30.030. Application of the credit.

   (a) In a tax year or royalty payment period, subject to (c) of this section and the respective limitations of this subsection, the person may apply the credit, the taking of which was approved under AS 27.30.020(2), against
        (1) taxes payable by the person
             (A) under AS 43.65; application of the credit under this subparagraph may not exceed the lesser of
                  (i) 50 percent of the person's tax liability under AS 43.65 for the tax year that is related to production from the mining operation at which the exploration activities occurred, as shown under (b) of this section; or
                  (ii) 50 percent of the person's total tax liability under AS 43.65 for the tax year;
             (B) under AS 43.20; application of the credit under this subparagraph may not exceed the lesser of
                  (i) an amount equal to the amount determined under (A)(i) of this paragraph; or
                  (ii) 50 percent of the person's total tax liability under AS 43.20 for the tax year; and
        (2) mineral production royalty payments payable by the person under AS 38.05.135 - 38.05.160 and 38.05.212 for production from the mining operation at which the exploration activities occurred; application of the credit under this paragraph may not exceed 50 percent of the person's mineral production royalty payment liability from the mining operation at which the exploration activities occurred.
   (b) If the person applies the credit against the person's tax liability under (a)(1)(A)(i) or (a)(1)(B)(i) of this section, the commissioner of revenue shall disallow application of the credit under that provision unless the person files with the person's tax return an accounting of the person's mining operation activities for each mining operation that is included in the tax return and as to which the credit is being applied. The accounting of mining operation activities required by this subsection shall be made
        (1) on a form prescribed by the Department of Revenue; on the form, the person shall
             (A) identify the mining operations for which the credit is claimed; and
             (B) set out the gross income attributable to the mining operations and other information about the mining operations that the Department of Revenue may require;
        (2) without regard to an exemption to which the person may be entitled under AS 43.65.010(a).
   (c) The person may not apply the credit under this section if the application would exceed the total amount of the credits approved under AS 27.30.020(2).

Authorities

27.30.040;43.20.044;43.65.020

Notes

Recent Bills that will modify this

HB 253 ELCTRNC TAX RETURN;MINING LIC. TAX & FEES
HB4001 OMNIBUS TAXES & CREDITS; MINING LICENSES
HB4005 MINING: LICENSE,TAX, FEES; EXPLOR. CREDIT
HB5002 OMNIBUS TAXES & CREDITS; MINING LICENSES
SB 137 ELCTRNC TAX RETURN;MINING LIC. TAX & FEES
SB4001 OMNIBUS TAXES & CREDITS; MINING LICENSES
SB5002 OMNIBUS TAXES & CREDITS; MINING LICENSES

References

AS 27.30.040 Credit may be carried forward.
AS 43.20.044 Exploration incentive credit.
AS 43.65.020 Taxpayer's duties.

History

(Sec. 1 ch 86 SLA 1995; am Sec. 6 ch 56 SLA 1997)