Governor Dunleavy proposes tax relief for Alaska agriculture and timber businesses

Last week, Governor Mike Dunleavy introduced legislation to support Alaska's agriculture and timber industries.

HB 399 / SB 265 would add a new section to reduce the tax burden of businesses in the agriculture and timber industry in Alaska. The bill exempts certain agriculture and timber businesses from state and local income, property, and sales tax for a period of 10 years.

"Alaska is too reliant on imports for both our food and building supplies," said Governor Dunleavy in a press release. "Alaska has a vested interest in ensuring a robust agricultural and timber economy. Tax relief is a proven and responsible incentive to stimulate growth and will thereby help Alaska become more self-sufficient for food and lumber."

The tax exemption would apply to businesses that produce at least $25,000 a year in agriculture or timber products. The tax exemption would go into effect on January 1, 2025 and would be in place until January 1, 2035.