Talking Points for HB 21

ESTABLISHES A TAX CREDIT FOR PUBLIC BROADCASTING

HB 21 would establish a tax credit for the Alaska public broadcasting trust fund and allow a contribution amount up to $300,000 . The credit allowed for corporations paying state taxes is broken down as follows:

50% of the $300,000= $150,000

This bill also closes loopholes in current law which allow for both tax deductions and tax credits. Under HB 21, the credit cannot be used a deduction.

WHO CAN CONTRIBUTE

Any corporation or entity that pays a state tax for insurance premiums, title insurance premiums, the Alaska Net Income Tax (corporate income tax), oil and gas properties production, oil and gas exploration, production, and pipeline transportation property and mining license.

A corporation or entity paying state taxes can receive tax credits of up to $150,000 for a contribution or contributions to the Alaska public broadcasting trust fund.

WHO CAN RECEIVE THE CONTRIBUTIONS UNDER HB 21?

The Alaska public broadcast trust fund is eligible to receive contributions. This trust is created in Section 4 of HB 21.

POLL

A statewide poll of 3900 Alaskans conducted by Willhight Research Corporation indicated that 65.4% of Alaskans support a corporate tax credit to public radio.

SUNSET

The public broadcasting portion of this bill sunsets on December 31, 2002. The contribution limit and those eligible to receive contributions reverts to current statute.

AFFECT ON THE TREASURY

There will be a slight loss in state revenues. Estimates range from $650,000 to $1.3 million. Hopefully, in the near future, state dollars will not be sought to fund operations of public broadcast stations.

TRUST FUND

The principal of the fund consists of any legislative appropriations and gifts, bequests and contributions. The commissioner of revenue is the treasurer of the fund and will provide oversight for its administration. The Public Broadcast Commission will award grants from the fund and also solicit contributions, gifts and bequests. The principal of the fund may not be used for awarding of grants. Net income from the fund may be appropriated by the legislature for grants, inflation proofing, and for reinvestment purposes.

WHY SHOULD PUBLIC BROADCASTING RECEIVE A CREDIT AND NOT OTHER GROUPS

The state has a special relationship with public broadcasting unlike any other non-profit organizations. In 1966, the state created the Alaska Educational Broadcast Commission to set up a state system of public broadcasting stations. The state applied for the licenses, hired the station managers and assisted in constructing the

stations. A representative of the state, by regulation, sits on the board of directors of every station. Since the state created the system, there is a special obligation to assist

local communities in maintaining the service. Most of these stations were on the air by 1981, before the huge influx of oil money into the state treasury.

200,000 Alaskans use public broadcasting every week, few, if any other, non-profits affect or serve this many Alaskans. This service is often the only communication service for the Bush and a major element in the state's emergency response system.