The Alaska R&D tax credit, explained
Alaska offers an R&D credit worth 18% of the federal credit, but only C corporations with Alaska tax owed can use it.
Last verified July 2026 against Alaska Department of Revenue, Tax Division guidance.
The short answer
Yes, Alaska has a state R&D tax credit, but it works differently than most states. Instead of a separate rate on qualified spending, Alaska's credit equals 18% of the federal R&D credit that is apportioned to Alaska activity, under AS 43.20.021.
How the Alaska credit works
The credit is nonrefundable. It can bring Alaska corporate income tax down to zero, but it cannot generate a cash refund beyond that. Unused amounts carry forward for 20 years, which is longer than most states allow.
The catch for most startups: Alaska only taxes C corporations at the state level. It has no personal income tax and does not tax pass-through income at the entity level. A startup organized as an LLC or S corporation usually has no Alaska tax bill, so the state credit has nothing to offset.
How it stacks with the federal credit
For most Alaska startups, the federal R&D credit does the heavy lifting, since the state credit only helps C corporations with Alaska tax due. The federal credit covers engineer wages, a share of contractor costs, and cloud infrastructure used for building and testing software.
A startup under $5 million in revenue can apply up to $500,000 of the federal credit against payroll taxes each year instead of income tax. That path works regardless of entity type or Alaska tax liability.
Example: a 3-person Alaska engineering team with $290,000 in qualified salaries might generate a federal credit of roughly $20,000 to $29,000. A C corporation with Alaska tax owed could add an Alaska credit worth 18% of that federal amount, or roughly $3,600 to $5,200, on top.
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Eligibility and how to claim it
Alaska's R&D credit is open to businesses with qualified research expenses connected to Alaska, calculated by apportioning the federal credit using a formula based on property, payroll, and sales in the state.
Corporations claim it on Form 6390, filed with the Alaska corporate income tax return, Form 6000, 6100, or 6150. This is a state filing, done by the company's CPA alongside the federal Form 6765.
The Alaska Department of Revenue, Tax Division administers the credit. Because it only offsets corporate income tax, LLCs and S corporations without a separate Alaska corporate filing generally will not see a state benefit, even if they qualify federally.
Official source: Alaska Department of Revenue, Tax Division.
Carryforward and deadlines
Unused Alaska R&D credit carries forward for up to 20 years, one of the longest carryforward windows of any state. It follows the same filing deadline as the Alaska corporate income tax return.
There is no separate application window. The credit is calculated and claimed directly on the corporate return each year, alongside Form 6390.