Juneau, Alaska – Governor Sean Parnell yesterday welcomed the House of Representatives’ passage of legislation which provides tax credits for research and development activities that stimulate private-sector investment, entrepreneurial activity, and business expansion in Alaska.

House Bill 118 offers a 20 percent tax credit on qualified research and development expenditures not to exceed $10 million per tax year. It’s designed to incentivize companies to conduct independent research in Alaska.

“Innovation can be cost-prohibitive, but it can also ignite a series of capital investments and developments that may have been out of reach without these credits,” Governor Parnell said. “I want to thank Representative Mia Costello for her leadership on the House floor and thank her colleagues who advocated for and supported the bill.”

Governor Parnell is committed to expanding and diversifying Alaska’s economy. Alaska needs to cast a wide net with economic development; HB 118 can stimulate research and development in such areas as rare earth mineral processing, biomass, and cold climate housing.

House Bill 118 now awaits consideration in the Alaska Senate.