(The Center Square) – Alaska Gov. Mike Dunleavy is proposing tax breaks for corporations, which he says will make the state more affordable.
The “Alaska Affordability Act” would allow corporations to deduct up to 50% for childcare, electricity, housing and food against its corporate income tax. The bill does not give specifics about how large or small a corporation should be or how many people it should employee to receive the tax break.
The deductions would return $237.6 million to the corporations in fiscal year 2025, according to the bill’s fiscal note.
“Alaska’s cost of living is among the highest in the nation. The areas of childcare, housing, energy and food are the greatest expenses for most families,” Dunleavy said. “The private sector is far more equipped to solve these challenges than the government. The Alaska Affordability Act will be a catalyst that sets in motion voluntary development by the private sector that will make Alaska an even better place to live and raise a family.”
Three Alaska cities – Fairbanks, Anchorage and Juneau – have the highest food costs in the U.S., according to a report from the Council of Community and Economic Research released earlier this year. The report compares 276 metro areas across the country.
The Alaska Department of Labor and Workforce Development said in its July 2023 Trends publication that a 2022 Missouri Economic Research and Information Center report cited Alaska as the fifth costliest state behind Hawaii, Massachusetts, California and New York.
The bill would take effect Jan. 1, 2025. It is assigned to the Senate Labor and Commerce Committee
