Alaska Form 6323 – LNG Storage Facility Tax Credit
Last reviewed: 2025-11-12
Use the Alaska Tax Form Calculator Form 6323: Alaska Form 6323 – LNG Storage Facility Tax Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Alaska state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Alaska Form 6323 is used by corporations to compute and claim the LNG Storage Facility Tax Credit available under AS 43.20.046. The credit was created to encourage investment in liquefied natural gas (LNG) storage capacity across Alaska, particularly in regions where LNG serves as a critical fuel source for power generation, heating and industrial activity. Corporations constructing, expanding or improving qualifying LNG storage facilities can recover a significant share of eligible expenditures through this form, which integrates directly with the Alaska Corporate Net Income Tax Return (Form 6000).
The form requires detailed reporting of qualified costs such as land acquisition, engineering, permitting and construction expenses. Once total eligible costs are determined, the credit equals 50% of those costs, subject to the annual limitations defined in AS 43.20.046. Because this credit can substantially reduce corporate tax liability, Form 6323 plays an important role in the financial planning and capital budgeting of LNG-related infrastructure projects. Many Alaska corporations complete it alongside other resource-sector credit schedules, especially if projects span multiple tax years.
How to Complete Alaska Form 6323
Before beginning the form, corporations should assemble itemized supporting documentation for all construction and development costs associated with the LNG facility. Alaska requires taxpayers to retain invoices, contracts and engineering assessments to verify eligibility.
- Provide project details: Enter the project name, location, owner information and FEIN. For multi-phase developments, list the phase covered by this tax year.
- Report qualified expenditures: Add land acquisition costs, build-out expenses, permitting and engineering fees and other costs classified as qualified under AS 43.20.046. These entries form the basis for determining total eligible investment.
- Calculate the 50% credit: Multiply total qualified costs by 0.50. This generates the initial credit amount before the tax-liability limitation is applied.
- Apply credit limitations: Enter your corporate tax liability for the year and compare it to the computed credit. Only the lesser amount may be applied; any excess may be carried forward.
- Determine carryforward: If the credit exceeds your current-year tax liability, the unused portion is recorded as a carryforward and may be applied against future Alaska corporate tax obligations.
The Alaska Department of Revenue encourages taxpayers to calculate the credit annually even if carryforwards are expected, ensuring up-to-date tracking and compliance.
| SECTION A — Project Details | ||
| A1 | Facility / Project Name | |
| A2 | Location (City / Borough) | |
| A3 | Owner / Operator Name | |
| A4 | Federal Employer Identification Number (FEIN) | |
| SECTION B — Qualified LNG Storage Facility Costs | ||
| B1 | Land acquisition costs | |
| B2 | Construction / installation costs | |
| B3 | Engineering & permitting costs | |
| B4 | Other qualifying expenditures | |
| B5 | Total qualified costs (add lines B1–B4) | |
| SECTION C — Credit Computation | ||
| C1 | Credit rate (per AS 43.20.046) | |
| C2 | Calculated Credit (B5 × C1) | |
| C3 | Maximum credit allowed for tax year (if applicable) | |
| C4 | Credit allowable (lesser of C2 or C3) | |
| SECTION D — Credit Application | ||
| D1 | Tax liability to offset | |
| D2 | Credit used this year (lesser of D1 or C4) | |
| D3 | Unused credit carried forward | |
Credit Eligibility and Limitations
The LNG Storage Facility Tax Credit applies to costs necessary to construct, expand or materially improve an LNG storage facility used in Alaska. Land acquisition, design, site preparation, engineering studies, and construction contracts are generally eligible. However, corporations should ensure that any cost included meets the statutory definition of a qualified expenditure. Non-qualifying items (such as unrelated administrative overhead, long-term financing expenses or unrelated equipment purchases) must be excluded.
The credit is limited by the corporation’s tax liability for the year and cannot generate a refund. Instead, excess credit is carried forward until used. Many resource-sector corporations accumulate several years of carryforwards when projects occur before major revenue generation. Form 6323 provides the structure needed to maintain accurate year-to-year documentation and ensure compliance with Alaska filing requirements.
When to File Form 6323
Form 6323 must be completed and attached to the Alaska Form 6000 – Corporate Net Income Tax Return when claiming the credit. If claiming carryforwards only, Form 6323 is still required. Corporations should maintain records supporting the original expenditures for as long as any carryforward remains available.
Last reviewed: 2025-11-12: If you believe this form requires an update, please contact us.
Additional Resources
- Alaska Form 6000 – Corporate Net Income Tax Return
- Alaska Form 6300 – Incentive Credits Summary
- Alaska Form 6310 – Income Tax Education Credit
- Alaska Department of Revenue – Tax Division
Corporations investing in Alaska’s LNG infrastructure can substantially reduce tax exposure by correctly completing Form 6323 and tracking eligible project expenditures. Ensuring accurate credit computation, proper application against tax liability and consistent carryforward reporting helps maintain compliance while maximizing the incentive intended by Alaska’s LNG development laws.
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Frequently Asked Questions
Do Alaska residents need to keep tax documents for state audit purposes?
No. Alaska cannot audit your income because it does not impose income tax. However, the IRS may audit your federal return, and you should maintain documentation accordingly. For businesses, corporations, and certain credits (e.g., oil & gas or education credits), Alaska may conduct audits, but these do not apply to individual wage earners.
Is Form 6230 only for overpayments made early in the year?
No. Overpayment can occur in any installment period, including late-year projections. For example, if a corporation makes a large catch-up payment in Q3 based on assumed revenue that fails to materialize in Q4, that installment may be refundable. Form 6230 covers excess across the entire estimated-payment framework. The key requirement is that the corporation can compute and justify a lower estimated annual tax liability than originally projected.
How accurate are the 2026 Alaska tax tables?
They are based entirely on IRS updates for federal withholding, Social Security and Medicare. Because Alaska has no state income tax, the tables require no state adjustments, no bracket updates and no annual state-level legislative review. This makes Alaska one of the simplest states in which to compute net pay accurately. All tools are refreshed annually with IRS inflation adjustments, ensuring alignment with federal standards.
How does a corporation determine whether it has “nexus” in Alaska?
Nexus is established when a corporation has sufficient business activity within Alaska to create a tax obligation. This generally includes maintaining a physical presence, conducting sales or services with sustained in-state operations, having employees in Alaska, owning or leasing property, or deriving Alaska-source revenue. Alaska also follows economic-presence principles for certain industries, notably oil, gas and pipeline companies, meaning nexus can arise even with limited physical footprint. If a corporation has any recurring business activity in Alaska, it must typically file Form 6000 unless specifically exempt.
Are commuter or transit taxes withheld in Alaska?
No. Alaska does not impose commuter, transit, or regional mobility taxes that appear in some other states (such as Oregon's statewide transit tax or certain city-based earnings taxes). Regardless of where you live—Anchorage, Fairbanks, Juneau, the Kenai Peninsula, rural villages, or North Slope communities—there is no payroll-based commuter tax. Any transportation fees that do exist, such as ferry system fares or airport surcharges, are paid by users directly and never deducted from wages. This makes Alaska particularly attractive for remote workers or employees who commute substantial distances, because commuting never triggers payroll-related assessments tied to location.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.