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Instructions for Form 6390
2023 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
of Alaska law. In addition, AS 43.20.160 and AS 43.20.300 withholding, credit for employer social security and
require the Department to apply, as far as practicable, the Medicare taxes paid on certain employee tips, and other
administrative and judicial interpretations of the federal federal credits that are tax reimbursements. See 15 AAC
income tax law. 20.145(f). Also note that Alaska does not adopt Internal
Revenue Code Sections 1400–1400U, which may affect
Note that Alaska law does not adopt Internal Revenue allowable federal-based 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 13a: Enter the Alaska alternative minimum tax (AMT)
require special treatment under the Internal Revenue Code. from Schedule E, line 1d, net of the Alaska credit for prior
Such groups include “specific credits,” carryforward of year minimum tax (AMT credit) from Schedule A, line 11 .
“eligible small business credits,” and passive/non-passive
categories. See federal instructions for federal Form 3800 Lines 12b and 13b: Alaska incentive credits (from Form
for more details. 6300) are applied first. Any Alaska regular or alternative
minimum tax (AMT), left after application of Alaska incentive
From each of these baskets, Form 6390 removes any credits, may be offset by federal-based credits. Use the
credits that are not allowable for Alaska purposes. Alaska following worksheet to determine the respective amounts of
does not allow credits for backup withholding, credit for regular Alaska tax offset, and AMT offset by Alaska incentive
employer social security and Medicare taxes paid on credits:
certain employee tips, and other federal credits that are tax
reimbursements. See 15 AAC 20.145(f).
0405-6390i Rev 01/01/2024 - page 1
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