Budget & Taxes (Tax Incentives)

SB 218 exempts electric cooperatives from state and local ad valorem, income, and excise taxes. It also creates tax exemptions for new electricity generation and storage facilities (constructed on or after July 1, 2024) if operated by a public utility or joint action agency, or if they sell exclusively to public utilities or to end users not previously served by a public utility as of July 1, 2026. The bill repeals existing tax provisions for electric cooperatives and related facilities, effective July 1, 2026. This directly affects electric cooperatives and qualifying new energy infrastructure projects meeting the specified conditions.

SB 175 creates a tax exemption for corporations primarily operating in Port MacKenzie, removing their requirement to pay Alaska's net corporate income tax. This directly affects businesses located within the Port MacKenzie area. The bill adds a new provision to Alaska's tax code (AS 43.20.012(e)) specifying this exemption, while repealing the existing related section. The exemption takes effect immediately, but the repeal of the old rule is scheduled for July 1, 2035.