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
Are Alaska unemployment taxes included?
Employer-paid unemployment contributions exist in Alaska, but employees do not have unemployment tax withheld from their paycheck. Alaska operates a unique unemployment insurance system where both the employer and employee may contribute depending on current rate schedules, but employee deductions—if required for a given year—are typically small. Some years the employee rate is 0%. These contributions are not income taxes and do not affect your federal taxable wages.
How can I model long-term savings growth due to Alaska’s 0% income tax?
Because Alaska does not reduce your paycheck through wage-based taxes, the money you save can be invested or contributed to retirement accounts to compound over time. Tools like the Compound Interest Calculator and CAGR Calculator let you project how much faster savings grow when you retain more of your income. Even a modest annual investment of your “tax savings” can build significant wealth due to compounding over many years.
Are there any Alaska-specific rules for claiming dependents on my federal return?
No. Alaska does not maintain a state tax system, so it does not impose additional dependency tests, household requirements, documentation layers, or residency proofs. All federal dependency rules apply normally, including support tests, relationship tests, residency requirements and income limits. The lack of state-level additions makes dependency filing simpler for Alaska households than in most states.
Where can I access the reference page or tool for Form 6100?
A complete overview of the form, instructions and structured calculator logic is available at Alaska Form 6100 Calculator. This provides item-by-item explanations, relevant schedules and state-level guidance for S corporations.
Are there any Alaska state withholdings?
No standard payroll withholdings exist because Alaska does not impose a personal income tax. Employers do not submit state withholding accounts, state returns, or state payroll forms similar to W-4. The only exceptions relate to employer-funded programs such as unemployment insurance, but these do not appear as employee deductions on your paycheck. In most cases your wage slip will include only federal withholding, FICA, Medicare, and any voluntary deductions like health insurance or retirement contributions.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.