HB 252 seeks to encourage development of high-growth tech/research in AK

(Juneau) – Entrepreneurs and small businesses owners got a vote of confidence to start or keep their businesses in-state following passage of a bill targeted at fostering high-growth industry by the Alaska House.

Rep. Mia Costello‘s House Bill 252 takes advantage of a federal tax provision to promote development of businesses like intellectual property producers and the technology sector by exempting them from state corporate income taxes if they qualify for the federal provisions. The bill ties into the federal Small Business Jobs Act of 2010, which provides enhanced incentives for investments in “qualified small businesses” with assets of less than $50 million.

“Diversifying our economy is something we can all agree is important for our state, and HB 252 strives to help us do that by fostering new industry and promoting fledgling in-state efforts,” Costello, R-Anchorage, said. “The bill dovetails with federal law and says ‘if you qualify under the federal law, start your business here and let us help you grow.’ The idea is to attract new industry, help them grow and become good corporate tax payers here – not someplace else.”

Costello said HB 252 removes one of the major obstacles preventing the development of high-growth technology companies in Alaska and make our state more attractive to the sector, where companies tend to be more mobile and have options in where to incorporate.

HB 252 now moves to the Alaska Senate for consideration.