Alaska Administrative Code

Relocated 4/14/82. Notes 15 AAC 20.050 Effective April 14, 1982, 15 AAC 20.050 was relocated to 15 AAC 20.300.

Notes 15 AAC 20.060 Eff. 7/2/77, Register 62; repealed 3/6/98, Register 145

Notes 15 AAC 20.070 Eff. 7/2/77, Register 62; repealed 3/6/98, Register 145

Notes 15 AAC 20.080. - 15 AAC 20.090 Eff. 3/6/98, Register 145, the regulations attorney deleted reserved sections 15 AAC 20.080 - 15 AAC 20.090. The Department of Revenue did not adopt regulations under these sections.

(a) Each taxpayer shall file a return except that two or more taxpayers that engage in a unitary business and that join in filing a consolidated federal return shall file a consolidated Alaska return. (b) Two or more taxpayers that do not join in a consolidated federal return may…

(a) For tax years beginning after June 30, 1980, a taxpayer may apply as a credit against his tax liability computed under AS 43.20 18 percent of the investment credit allowed under Internal Revenue Code section 38 upon only the first $20,000,000 of qualified investment put into …

Notes 15 AAC 20.120 Eff. 3/28/82, Register 81; repealed 3/6/98, Register 145

Notes 15 AAC 20.122 Eff. 3/28/82, Register 81; repealed 3/6/98, Register 145

Notes 15 AAC 20.124 Eff. 3/28/82, Register 81; repealed 3/6/98, Register 145

If a provision of the Internal Revenue Code that is adopted by reference under AS 43.20.021(a) refers to the highest rate of tax under Internal Revenue Code section 11 (26 U.S.C. 11), a taxpayer shall use the highest rate of tax specified under AS 43.20.011(e). Notes 15 AAC 20.13…

(a) The Alaska alternative minimum tax is 18 percent of the applicable alternative minimum federal tax determined under (b) and (c) of this section and is in addition to, and independent of, the income tax imposed at the rates set out by AS 43.20.011(e). (b) The applicable altern…

(a) A taxpayer's net capital gain may be taxed at the alternative tax rate as provided in AS 43.20.021(c). A taxpayer may not deduct its net capital loss in determining taxable income. A taxpayer shall carry back or carry forward its net capital loss in accordance with Internal R…

(a) A credit may be attributed to Alaska only if the credit is claimed on a federal return. For purposes of this section, a federal credit is generated in the year it is originally claimed on a federal return. A federal credit need not be applied to reduce federal tax in the year…

Notes 15 AAC 20.150 Eff. 10/25/2015, Register 216, January 2016 ; repealed 9/20/2020,Register 235, October 2020

(a) A waiver of the electronic filing requirement granted by the United States Internal Revenue Service will be accepted by the department as a waiver to the requirement to electronically file a return under this chapter. The corporation or partnership must notify the department …

Notes 15 AAC 20.200 As of Register 81 (April 1982), 15 AAC 20.200 has been relocated to 15 AAC 20.900.

(a) Upon notification from the film office of the award, under AS 44.33.231-44.33.239 and 3 AAC 188, of a film production tax credit to a producer, and as provided under AS 43.98.030, the department will issue the producer a film production tax credit certificate. (b) To use a fi…

(a) A taxpayer that is not part of a unitary business and that has income from business activity or other sources taxable both inside and outside the state shall allocate and apportion its worldwide net income as provided in AS 43.20.142. (b) A taxpayer that is part of a unitary …

(a) A business is unitary if the entity or entities involved are owned, centrally managed, or controlled, directly or indirectly, under one common direction which can be formal or informal, direct or indirect, or if the operation of the portion of the business done within the sta…

(a) The income, expenses, assets, and apportionment factors of an enterprise involving undivided joint ownership must be attributed to the joint owners of that enterprise on the basis of their respective ownership interests, as may be modified by agreement among those joint owner…

(a) A corporation, except a corporation required to be included in a return under AS 43.20.144, must file a return under AS 43.20.145 using the water's edge combined reporting method if that corporation is a member of an affiliated group as defined in 15 AAC 20.335. (b) A corpora…

(a) For purposes of 15 AAC 20.330 - 15 AAC 20.395, an affiliated group consists of two or more corporations in which 50 percent or more of the voting stock of one or more member corporations in the group is owned, directly or indirectly, by one or more corporate or noncorporate o…

Notes 15 AAC 20.340 Eff. 7/9/93, Register 127; repealed 3/6/98, Register 145

(a) A water's edge return filed under AS 43.20.145 must separately identify the income and apportionment factors of each corporation included in the return. The corporations included in the return comprise the water's edge combined group. (b) The income and apportionment factors …

(a) Income from intercompany transactions between members of the water's edge combined group shall be eliminated from the water's edge return. (b) Income from transactions between a member of the water's edge combined group and a corporation outside the water's edge combined grou…

(a) The department will, in its discretion, adjust the transfer price of any goods or services transferred to or from a water's edge combined group corporation and an affiliate not in the water's edge combined group as follows: (1) if the transferor corporation had more than 10 p…

An affiliated corporation included in a taxpayer's water's edge return shall maintain records of intercompany transactions. Upon notification by the department of the department's intent to perform an audit of the taxpayer, an affiliated corporation shall make available to the de…

(a) The total water's edge business income of the unitary business subject to apportionment is the federal taxable income of the water's edge combined group as determined under AS 43.20.145(b) and 15 AAC 20.300. (b) Royalties and dividends not excluded from taxable income under A…

In determining a corporation's payroll, property and sales factors in the United States under AS 43.20.145(a)(1) and (4), the following rules apply: (1) the rules for inclusion, value, and attribution of apportionment factors for the water's edge combined group must be determined…

(a) Income from intercompany transactions, including the receipt or payment of dividends and royalties, among members of the water's edge combined group must be eliminated. (b) Dividends and royalties received by members of the water's edge combined group from a corporation incor…

(a) For a return to be complete, a taxpayer shall submit within six months of the date of initial filing of a return under the water's edge reporting method, a copy of all domestic disclosure spreadsheets that included any member of the water's edge combined group filed in other …

(a) A taxpayer doing business in this state, the unitary business of which derives gross income from a production interest in one or more leases or properties in commercial production that are within this state or the transportation of oil or gas or both by means of a regulated p…

Notes 15 AAC 20.420 Eff. 4/14/82, Register 82; repealed 3/6/98, Register 145

(a) A taxpayer that is subject to AS 43.20.144, the unitary business of which is predominantly a petroleum business, shall apportion all unitary business income determined under AS 43.20.144 to this state using the apportionment factor of the entire unitary business determined un…

For purposes of calculating the estimated tax penalty, Internal Revenue Code section 6655(d)(2) (26 U.S.C. 6655(d)(2)) does not apply for the tax year beginning in calendar year 1998. This section applies to a taxpayer that is subject to AS 43.20.144 for the tax years beginning i…

Notes 15 AAC 20.430 Eff. 4/14/82, Register 82; repealed 3/6/98, Register 145

Notes 15 AAC 20.440 Eff. 4/14/82, Register 82; repealed 3/6/98, Register 145

A taxpayer subject to AS 43.20.144 shall capitalize, and depreciate under 15 AAC 20.480, intangible drilling and development costs that are not subject to capitalization and depletion in the determination of federal taxable income as a result of an election under Internal Revenue…

Notes 15 AAC 20.450 Eff. 4/14/82, Register 82; repealed 3/6/98, Register 145

Notes 15 AAC 20.460 Eff. 4/14/82, Register 82; repealed 3/6/98, Register 145

Notes 15 AAC 20.470 Eff. 4/14/82, Register 82; repealed 3/6/98, Register 145

(a) This section applies to taxpayers subject to AS 43.20.144. (b) Except as provided for by 15 AAC 20.421(b) (3), a taxpayer shall report depreciation expense for all unitary corporations using the class life asset depreciation range system as applied under Internal Revenue Code…

The apportionment factor of a taxpayer subject to AS 43.20.144 shall be determined based upon the business activities of the taxpayer's unitary business conducted within this state. Except as limited by 15 AAC 20.421, a taxpayer subject to AS 43.20.144 shall apportion its busines…

(a) The sales factor of a taxpayer subject to AS 43.20.144 is a fraction (1) the numerator of which is the sum of the following for the tax period: (A) the tariffs allowed and received by or for the taxpayer for transporting oil or gas by pipeline in this state, regardless of whe…

The taxpayer shall maintain the records necessary to verify the accuracy of computations under AS 43.20, including but not limited to: depreciable basis, depreciation expense, cumulative intangible drilling and development costs, petroleum business income, other business income, …

If the methods of allocation and apportionment in this chapter do not fairly represent the extent of a corporation's business activity in the state, the corporation may petition for or the department may require, in respect to all or any part of the corporation's business activit…

Notes 15 AAC 20.530 Eff. 3/25/2004, Register 169 ; repealed 9/20/2020,Register 235, October 2020