If you own a business in Alaska—or want to start one—there are three key state tax incentives you should know about.
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Alaska tax incentives for businesses
Education Tax Credit
Effective through the end of 2024, Alaska’s Education Tax Credit rewards businesses for donating to qualified educational institutions in Alaska, like schools and nonprofit educational or cultural organizations.
If your business makes a cash or equipment contribution to a qualified educational institution, you can get a credit for 50% of your contribution amount. You can then use the credit to offset a variety of your taxes, including the following:
- Corporate Income Tax
- Fisheries Business Tax
- Fishery Resource Landing Tax
- Insurance Premium/Title Tax
- Mining License Tax
- Oil and Gas Production Tax
- Oil and Gas Property Tax
Learn more about the Education Tax Credit here.
Exploration Incentive Credit Program
Run by the Department of Natural Resources, the Exploration Incentive Credit Program was created to encourage new mineral exploration activities within Alaska. Businesses that invest in qualified mineral exploration activities can get a credit for up to 50% of the cost of their qualified mineral exploration expenditures. You can use the credit to offset your mining license tax, corporate income tax, or production royalty owed.
Qualified mineral exploration activities include:
- Geochemical and geophysical survey programs
- Exploration drilling
- Underground exploration
- Surface trenching and bulk sampling
- Other exploration work, including aerial photography, geological or geophysical logging, sample analysis, and metallurgical work
Learn more about the program here.
Alaska Affordability Act Tax Credit
The Alaska Affordability Act (Senate Bill 237) is a new piece of legislation designed to incentivize Alaska businesses to help reduce the overall cost of living in the state. Alaska businesses that incur expenses related to childcare, energy, housing development, and food security will be able to claim a credit of up to 50% of the cost of those expenses.
The tax credit is set to take effect in 2026, so businesses can claim it for 2025 expenses. Learn more here.
Financing resources for small businesses in Alaska
If you’re trying to grow your Alaska-based business, state financing resources can help. Read through Gusto’s guide to grants and loans in The Last Frontier state.
Check out these blog posts for practical advice on running a business in Alaska:
