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Committee reports HB 350 out after debate on informational returns, credits and timing; 4–2 vote
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Summary
House Labor and Commerce debated amendments to HB 350, a qualified-entity income tax on pass-through entities with a $25 million threshold and 9.4% rate. After amendment debate and withdrawals, Cochair Fields moved to report the bill and the committee voted 4 yeas, 2 nays to send HB 350 out of committee with recommendations and fiscal notes.
Cochair Fields' staff gave a brief overview of HB 350, explaining the bill would impose an income tax on qualified entities (non-C corporations) at a 9.4% rate starting at a $25 million threshold. "This is a bill establishing an income tax on other corporation types beyond C corps starting at a threshold of 25,000,000," the staff summary said.
Members debated four offered amendments covering informational returns, a set of repealers tied to legacy individual tax credits, and effective dates. Legal services explained the historical basis for the referenced tax credits (dating to when Alaska had an individual income tax), and staff noted the first tax payment under the committee substitute would be due in the first quarter of 2028 for calendar-year 2027 income.
After amendment discussion and several withdrawals, Cochair Fields moved to report HB 350 out of committee "as amended with individual recommendations and accompanying fiscal notes." Representative Sadler objected on the record. The secretary called the roll: Representatives Freer and Kerrick and Cochairs Fields and Hall voted yes; Representative Colomb and Representative Sadler voted no. By a vote of 4 yeas and 2 nays, the committee reported HB 350 out with individual recommendations and accompanying fiscal notes.