Time To Diversify Alaska Economy: Democrats Filing Bill To Encourage New Alaska Business
(ANCHORAGE) – Today Democratic legislators announced they were pre-filing legislation this coming week to help diversify Alaska's resource-dependent economy, so that job opportunities can be created in new areas, in addition to resource jobs.
"We want to send a strong message that Alaska is open for business. For those considering starting up a new business, this legislation says, welcome, and we'll help you get through those tough first few years," said Rep.-Elect Geran Tarr (D-Anch).
The bill is tailored to add to the basket of incentives business promoters can use when they try to attract new business startups, but to not break the bank. It grants a 2/3 reduction in Alaska's corporate tax during the first three years of the company's business operations. "By limiting the break to three years – the most important for a new business' success – it will serve as an incentive without damaging the state's fiscal health," said Rep. Les Gara (D-Anch), a prime sponsor of the bill.
"We've talked a lot about bringing new businesses to Alaska, and encouraging locals to start new businesses. It's time to act about creating new jobs and business, and not just talk. Limited tax breaks, that expire after a few years are a way to encourage new business, without costing the state's treasury in any significant way," said Gara.
"We need to work in partnership with the business community to have a strong and diversified economy. That's what I heard going door to door – that folks want to see new business development in Alaska. We'll work with other legislators and the business community to make this bill a big step forward in creating a thriving business community," said Rep.-Elect Tarr.
To protect against fraudulent use of the incentive, the business must be a new line of business, and qualitatively different than a business that is already run by that owner in Alaska.