Establishes a 9.4% income tax on qualified entities with taxable income over $25 million, effective January 1, 2026.

The bill introduces a new income tax on qualified entities in Alaska, defined as sole proprietorships, partnerships, limited liability companies, and entities filing federal returns under the Internal Revenue Code. The tax rate is 9.4% on taxable income exceeding $25 million. The bill also includes provisions for retroactive application, allowing the Department of Revenue to implement regulations retroactively and waiving certain penalties for taxpayers until January 1, 2027. The tax applies to income calculated as if the entity were a C corporation under federal law.

Establishes a 9.4% income tax on qualified entities with taxable income over $25 million, effective January 1, 2026.

The bill introduces a new income tax on qualified entities in Alaska, defined as sole proprietorships, partnerships, limited liability companies, and entities filing federal returns under the Internal Revenue Code. The tax rate is 9.4% on taxable income exceeding $25 million. The bill also includes provisions for retroactive application, allowing the Department of Revenue to implement regulations retroactively and waiving certain penalties for taxpayers until January 1, 2027. The tax applies to income calculated as if the entity were a C corporation under federal law.