As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Alaska
, and their state economic development professionals gave us some details (Alaska incentives site click here
For starters — Alaska has very high corporate income tax rates and NO personal income tax. CNBC ranked Alaska #47 in their 2017 America’s Top States for Business survey (Georgia was #2 in the same survey).
Financing and tax credits include:
Ten types of loan funds, covering rural development, small business, commercial fishing, alternative energy, mariculture (what?), and micro loans.
Tax credits are extremely narrow and would only apply to taxes paid by corporations: Oil and Gas Exploration, Minerals Exploration, Film Production, and Education. So not much.
Compared to Georgia, Alaska has:
- Very high (up to 9.4%) corporate income tax rates
- Zero (0.0%) personal income tax rates
- A far far narrower range of incentives
- Pre-approval required for all incentives
To summarize, for larger corporations, Alaska has very high taxes and very few incentives. For pass-through entities, Alaska doesn’t need income tax incentives, because they have no personal income taxes.