Alaska

Sectors it is courting

• Energy
• Agribusiness
• Aerospace and Defense
• Information and Communication Technology

In its own words: Seafood — typed in free text, so not filterable above.

Investment it is seeking from

• South Korea
• Japan
• Australia
• Canada
• India
• United Kingdom
• Taiwan
• Vietnam
• Indonesia
• Singapore

Supply-chain projects it is looking for

Critical Minerals and Materials

Site-selection services it offers

The State of Alaska does not offer a formal site selection service, but the State is willing and able to assist investors on a case-by-case basis. Investors should reach out to the Department of Commerce, Community, and Economic Development, Office of the Commissioner, to inquire about assistance with site selection.

Incentive programmes

• Tax Credit

  The Education Tax Credit encourages private businesses to make charitable contributions that support Alaskan schools. The credit includes contributions of both cash and equipment. The education tax credit applies to the Alaska Corporate Income Tax, Mining License Tax, Fisheries Business Tax, Fishery Resource Landing Tax, Oil and Gas Production Tax, Oil and Gas Property Tax, and Insurance Tax. To qualify as a credit, the donation must be made to an eligible organization for a qualified purpose. Exploration Incentive Credit- Stimulate new mineral exploration activities in the State of Alaska. Expenditures for certain mineral exploration activities incurred prior to commencement of mine construction can be used as credits to be applied against future state mining license tax, corporate income tax, and state production royalty owed from mine production resulting from exploration efforts. The credit may be applied for up to 50% of the tax liability or state production royalty for the tax year applied and must be applied within 15 tax years after approval of the tax credit. Minerals Exploration Credit / Exploration Incentive Credit- A non-transferable credit for eligible costs of non-petroleum mineral or coal exploration activities and must be used within 15 years.

• Tax Exemption

  Royalty Exclusion: The Foreign Royalty Exclusion is intended to encourage foreign investment in the state. Under this exclusion, 80% of foreign royalties are excluded from Alaska corporation net income tax. Royalty relief: State oil & gas leases in the Cook Inlet region are potentially eligible for a royalty reduction down to 5% for discoveries of new oil & gas pools. To qualify, a well must be drilled into a new oil or gas pool that was previously undiscovered. The discoverer is required to file a nonconfidential, certified statement with the Commissioner of Natural Resources. After certification by the Commissioner, the royalty relief is effective for 10 years. Royalty Relief for Cook Inlet Platforms - Oil produced from State oil & gas leases through certain offshore platforms located in Cook Inlet is eligible for a royalty reduction down to 5%. Royalty Relief for Cook Inlet platforms is eligible for all oil produced below certain daily production thresholds, in order to assist in ensuring that production from these platforms remains economic for producers. Statewide Royalty Relief- State oil & gas leases throughout the State are potentially eligible for royalty reductions, in some circumstances down to a 3% royalty.

• Loan/Loan Participation

  Provides permanent financing to borrowers for the purpose of developing, acquiring, or enhancing Alaska business enterprises. AIDEA can purchase up to 90% of a participating credit to a maximum of $25 million. The project being financed must be in Alaska. The loan request must be sponsored and originated by a financial institution eligible to participate in AIDEA's credit programs. The Loan Participation Program provides the benefit of long-term fixed or variable rate financing on the portion of the loan purchased by AIDEA, which may reduce the business enterprise's debt service. Financing may be either taxable or tax-exempt. Project Development Program enhances economic development throughout Alaska by providing direct development and project financing. AIDEA can assist Alaskans through its ability to develop, own (in whole or in part), and operate basic installations and facilities within the state, especially those which advance the prosperity of a region. Roads, ports, airports, infrastructure for tourism destination facilities or other public use facilities which are essential for the economic wellbeing of an area and can produce adequate revenues to repay the bonds sold to finance the project are considered eligible projects. Projects must fulfill AIDEA’s mission and strategic initiatives.

• Other

  Land use programs: The Alaska Mental Health Trust Land Office manages 1 million acres of land for the exclusive purpose of generating revenues to support programs that improve the lives and circumstances of Alaskans who experience behavioral health conditions and developmental disabilities. The Trust Land Office (TLO) provides land use programs that are available for both in-state and out-of-state businesses, as well as individuals. Trust lands provide opportunities for commercial real estate development, material and mineral development, oil and gas development, timber harvest, commercial recreation, commercial hunting guiding, compensatory mitigation, and many other business activities. The TLO also offers land sales through annual land auctions, over-the-counter sales, and other negotiated sales – all with Trust financing available.\ The Alaska Department of Natural Resources (DNR) competitively offers state land under various land disposal programs. Commercial parcels, agricultural parcels, and over the counter (OTC) sales are available for purchase by businesses and nonresidents. DNR sells land fee-simple for the surface estate and does not control the post-patent use of land, except for agricultural sales, which restricts the use of the parcel to only uses which support agricultural use of the land. DNR offers financing through land sales contracts for land purchases over $2,000.

Technology-sector sub-sectors sought

ICT (including Software / Cybersecurity / AI)

Programmes for international technology startups

Incentives through the State of Alaska – or a state corporation – include bonds, land use programs, loans, marketing & branding programs, royalty incentives, opportunity zones, and tax-related incentives.

Programmes for international clean-energy projects

Alternative Energy Loan can be used to purchase, construct and install alternative energy systems or energy conservation improvements in commercial buildings. Loans may be made to purchase, construct and install alternative energy systems or energy conservation improvements in commercial buildings. Loans must result in alternative energy production or energy conservation.

Investor account, as submitted

• Graphite One- Canadian: continues to develop its Graphite One Project to become an American producer of high-grade anode materials that is integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture anode materials primarily for the lithium‐ion electric vehicle battery market. As set forth in the Company’s 2022 Pre-Feasibility Study, graphite mineralization mined from the Company’s Graphite Creek Property, situated on the Seward Peninsula about sixty (60) kilometers north of Nome, Alaska, would be processed into concentrate at an adjacent processing plant. Natural and artificial graphite anode materials and other value‐added graphite products would be manufactured from the concentrate and other materials at the Company’s proposed advanced graphite materials manufacturing facility to be located in the contiguous United States.

Submitted by the economic development organisation, not independently verified.

Who to contact

• Jenae EricksonProject ManagerJenae.erickson@alaska.gov(907) 419-2022
• Caro Rosier-Polleycaro.rosier-polley@alaska.gov

333 Willoughby Ave, Juneau