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Bill lowering corporation tax liability passes

JUNEAU, Alaska (AP) -- The Alaska Legislature has passed a bill aimed at reducing tax liability for Alaska corporations.

SB7, from Sen. Cathy Giessel, passed the House Sunday, and the Senate later agreed to changes made on the House side.

Under the bill, corporations that take in a taxable income of under $25,000 a year would no longer be subject to state taxes.

Opponents of the bill say the state cannot afford to keep piling on tax breaks in light of declining revenues.

A fiscal note from the Department of Revenue says the bill will cost the state roughly $5 million a year.