Instructions for Form 6390

                    2019 Alaska Federal-Based Credits
 
         GENERAL INSTRUCTIONS                                 Finally, Form 6390 imposes tax liability limits based on 
                                                              Alaska tax, limits the credits to 18%, and apportions the 
Purpose of Form                                               credits, if appropriate.
Form 6390 orders and limits federal-based credits, on an 
as-if Alaska basis. This form is required if such credits     Form 6390 must be attached to Form 6000, 6100, or 6150 
are to be claimed on Form 6000, 6100, or 6150. Under          to claim federal-based credits.
AS 43.20.021(d), where a credit allowed under the 
Internal Revenue Code and is also allowed in computing                      SPECIFIC INSTRUCTIONS
Alaska income tax, it is limited to 18% of the amount of 
credit determined for federal income tax purposes, and        Line 2a: Alaska allows the federal investment credit 
apportioned, if applicable.                                   only  to  the  extent  attributable  to Alaska  property.  See 
                                                              AS 43.20.036(b). On line 2a enter the amount of federal 
Adoption of the Internal Revenue Code                         investment credit (non-passive activities) that is not 
Under AS 43.20.021, Alaska adopts the Internal Revenue        attributable to Alaska property.
Code, Sections 1–1399 and 6001–7872, with full force 
and effect, unless excepted to or modified by provisions      Line 2b: Alaska does not allow credits for backup withholding, 
of Alaska law. In addition, AS 43.20.160 and AS 43.20.300     credit for employer social security and Medicare taxes paid 
require the Department to apply, as far as practicable, the   on certain employee tips, and  other federal credits that are 
administrative and judicial interpretations of the federal    tax reimbursements. See 15 AAC 20.145(f). Also note that 
income tax law.                                               Alaska does not adopt Internal Revenue Code Sections 
                                                              1400–1400U,  which  may  affect  allowable  federal-based 
Note that Alaska law does not adopt Internal Revenue          credits.
Code Sections 1400–1400U, which grant tax benefits for 
activities in certain geographic zones, including those in    Line 4:  Use Form 6395 to calculate general business 
“Enterprise Zones” and “Gulf Opportunity Zones.” If the       credits from a passive activity.  Enter amount from Form 
taxpayer qualifies for special federal treatment under these  6395, line 17.
code sections, this may require that the taxpayer recompute 
some federal-based credits for Alaska purposes.               Line 9: Alaska allows unused federal-based credits to be 
                                                              carried forward, based on applicable federal rules. An entry 
Other Related Forms                                           on line 9 must be supported by a schedule, attached to 
Form 6395 is used to account for passive activity limitations the return, showing the individual unused credits, by year 
on an as-if Alaska basis.                                     generated and used, which are available. The schedule 
                                                              must show credits on an as-if Alaska basis, based on 
If You Need Help                                              prior years’ Forms 6390 (or equivalent), not federal credit 
If you have questions, need additional information or require carryover amounts.
other assistance, see our website at www.tax.alaska.gov, 
or call:                                                      Line 10: Alaska allows carryback of unused federal-based 
                                                              credits, based on applicable federal rules. An entry on line 
                  Juneau: 907-465-2320                        10 must be supported by a schedule, attached to the return, 
         Anchorage:  907-269-6620                             showing the individual unused credits, by year generated 
                                                              and used, which are available for carryback.
In general, Form 6390 follows the function of  federal  
Form 3800, accounting for various groups of credits that      Line 21:  Use Form 6395 to calculate “specified credits” 
require special treatment under the Internal Revenue Code.    from a passive activity.  Enter amount from Form 6395, line 
Such  groups  include  “specific  credits,”  carryforward  of 18.
“eligible small business credits,” and passive/non-passive 
categories. See federal instructions for federal Form 3800    Lines 26a–26b: See instructions for line 9 above.  Attach 
for more details.                                             schedule of applicable credits, by year generated and used.    

From each of these baskets, Form 6390 removes any             Lines 27:  See instructions for line 10 above.  Attach 
credits that are not allowable for Alaska purposes. Alaska    schedule of applicable credits, by year generated and used. 
does not allow credits for backup withholding, credit for 
employer  social  security  and  Medicare  taxes  paid  on 
certain employee tips, and other federal credits that are tax 
reimbursements. See 15 AAC 20.145(f).
                                                                                      0405-6390i  Rev 01/01/2020 - page 1