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 Anchorage or Fairbanks tax income?
No. Neither Anchorage nor Fairbanks taxes individual wages. Anchorage historically debated implementing a municipal income tax as an alternative to property taxes, but such measures have never passed. Fairbanks relies on property taxes and user fees. As a result, residents and workers in both cities benefit from Alaska’s statewide 0% income-tax policy with no additional local payroll deductions.
If I move to Alaska mid-year, do I immediately stop paying state income tax?
Yes. Once you become an Alaska resident, no state income tax applies to wages earned from that point forward. You must still file a part-year return for the state you moved from, reporting income earned before establishing Alaska residency. Alaska requires no part-year return, residency declaration or supplemental state forms. Your federal obligations remain unchanged, but Alaska offers instant relief from state withholding the moment your employer updates your work location or residency information.
If I open an LLC in Alaska, will I owe any state income tax?
For single-member LLCs treated as disregarded entities and traditional pass-through entities, Alaska imposes no state income tax at the individual or pass-through level. The income flows through to your federal return, and no Alaska filing is required. However, certain corporations—including C-corporations operating in Alaska—*are* subject to Alaska corporate income tax. LLCs electing C-corp treatment must follow those rules. For most small business owners, Alaska remains one of the most tax-advantaged jurisdictions in the United States.
How do pre-tax benefits like HSAs or FSAs affect take-home pay in Alaska?
HSAs, FSAs, dependent care FSAs and similar pre-tax benefits reduce federal taxable wages and often reduce FICA taxes. Alaska’s lack of a state tax means there is no second layer of savings or rules to track. As a result, tax planning involving pre-tax benefits is cleaner and easier for Alaska residents, since all tax effects occur at the federal level.
Where can I access a structured version of Alaska Form 6220?
A structured and calculator-ready version of the form is available at AK-6220 Underpayment Calculator, including line-by-line fields and automated penalty estimation.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.