Alaska Economic Development Directory

Alaska State Incentives

RURAL DEVELOPMENT INITIATIVE FUND: Provides private sector employment by financing the start-up and expansion of businesses that will create significant long-term employment.

• Loans may be made to a business located in a community with a population of 5,000 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a population of 2,000 or less that is connected by road or rail to Anchorage or Fairbanks.
• Loans may be made for working capital, equipment, construction or other commercial purposes.
• Loans may not be made to pay costs that were incurred more than 6 months before loan application.
• Loans must result in the creation of new jobs or the retention of existing jobs in the eligible community.

SMALL BUSINESS ECONOMIC DEVELOPMENT (SBED): Provides private sector employment by financing the start-up and expansion of businesses that will create significant long-term employment. Generally, a business must have fewer than 500 employees, have a net worth under $6 million and have an average net income after federal taxes for the preceding two years less than $2 million to qualify. Eligibility for the SBED program includes all communities in the state of Alaska with a population of less than 30,000. Loans in communities of 30,000 or more are available on a limited basis, depending on funds availability.

ALASKA FILM PRODUCTION INCENTIVE PROGRAM: Applicants can qualify for up to 44 percent in a transferable tax credit on qualified production expenditures in Alaska. Eligible projects are broadly defined as film, documentary, commercial and video productions requiring a minimum of $100,000 of qualified expenditures in Alaska.

OIL AND GAS EXPLORATION TAX CREDITS: Allow for a production tax credit for certain exploration geophysical survey and drilling activities as an alternative to the QCE credits under AS 43.55.023. Provisions for exploration drilling credits under this statute are different for areas inside of and outside of the Cook Inlet sedimentary basin.

MINERALS EXPLORATION TAX CREDITS: Taxpayers may take a credit for 100% of eligible costs of exploration activities related to determining existence, location, extent or quality of a locatable mineral or coal deposit. The incentive may not exceed $20 million and must be applied within 15 tax years after the taking of the credit is approved. Application of the credit is limited to 50 percent of the lesser of the taxpayer’s mining license tax liability or 50 percent of the taxpayer’s total corporation net income tax liability.

The COMMERCIAL FISHING AND AGRICULTURE BANK provides loans to fishing, tourism, natural resources and agriculture-based projects. The Division of Investments provides loans to fishing enterprises and other small business ventures.

ALASKA GROWTH CAPITAL: Provides financing to nontraditional borrowers/businesses that use innovative technology, are in rural Alaska and are minority-owned.

COMMERCIAL FISHING LOAN FUND: Provides long-term, low interest loans to promote the development of predominantly resident fisheries, and continued maintenance of commercial fishing vessels and gear for the purpose of improving the quality of Alaska seafood products. Must be an Alaska resident for the past 2 years, child support payments must not be past due and must provide a copy of each applicant’s valid government issued identification at or before loan closing.

FILM INCENTIVE PROGRAM: Provides a transferable tax credit for qualified film production expenditures as an incentive to attract large scale film production in Alaska.

•    Must spend at least $100,000 in a consecutive 24 month period.
•    30 percent transferable tax credit on qualified expenditures.
•    Claim an extra 10% for wages paid to Alaska residents.
•    Claim an extra 2% if filming in a rural area.
•    Claim an extra 2% if filming between October 1 and March 30.
•    No salary cap per employee per production.

MICRO LOAN PROGRAM FOR WOMEN ENTREPRENEURS: Provides lending opportunities to women-owned businesses which may or may not qualify for conventional funding. The loans also serve as an opportunity for women to establish credit for their businesses. Women entrepreneurs interested in a loan of up to $10,000 to start, develop or stabilize a viable business must:

• be a U.S. citizen
• be at least 21 years old and have no criminal record
• be 51% owner and operator of the small business
• have a solid, completed business plan for a viable enterprise
• show proof of entrepreneurship capabilities
• submit a complete loan package