HB 90: "An Act relating to a salmon product development tax credit under the Alaska fisheries business tax and the Alaska fisheries resource landing tax; and providing for an effective date."
00 HOUSE BILL NO. 90 01 "An Act relating to a salmon product development tax credit under the Alaska fisheries 02 business tax and the Alaska fisheries resource landing tax; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.75 is amended by adding a new section to read: 06 Sec. 43.75.035. Salmon product development tax credit. (a) A taxpayer 07 that is a fisheries business may claim a salmon product development tax credit of 50 08 percent of qualified investment in new property first placed into service in a shore- 09 based plant or on a vessel in the state in the tax year. 10 (b) The tax credit claimed under this section may not 11 (1) exceed 50 percent of the taxpayer's tax liability incurred under this 12 chapter for salmon; or 13 (2) be applied for investment costs incurred after December 31, 2005. 14 (c) If the property for which a tax credit is claimed is installed on a vessel, the
01 amount of qualified investment under (a) of this section is determined by multiplying 02 the investment cost of qualified investment property by a fraction, the numerator of 03 which is the weight of raw salmon processed by the taxpayer in Alaska in the tax year, 04 and the denominator of which is the weight of raw salmon processed by the taxpayer 05 in and outside of Alaska in the tax year. 06 (d) An unused credit under this section may be carried forward and applied 07 against the tax liability incurred on salmon in the following three tax years. 08 (e) Qualified investment costs upon which a tax credit is claimed under this 09 section may not be considered for another tax credit in this title. 10 (f) A taxpayer may not claim the tax credit allowed under this section if the 11 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 12 this title. For purposes of this subsection, a taxpayer is not in arrears if the 13 contribution or tax liability is under administrative or judicial appeal. 14 (g) In this section 15 (1) "first placed into service" means the moment when property is first 16 used for its intended purpose; 17 (2) "new property" means property whose original use commences 18 with the taxpayer and does not include property first used by another person; 19 (3) "qualified investment" means an investment cost in the following 20 depreciable tangible personal property with a useful life of three years or more to be 21 used to produce value-added salmon products after the heading and gutting of the 22 salmon: filleting, skinning, portioning, mincing, forming, extruding, stuffing, 23 injecting, mixing, marinating, preserving, drying, smoking, brining, packaging, blast 24 freezing, and pin bone removal equipment; 25 (4) "state" includes the state and federal waters to 200 miles seaward 26 from Alaska; 27 (5) "tax liability" means the liability for all taxes under this chapter 28 before all credits allowed by this chapter; 29 (6) "useful life" means the useful life of the property that is or would 30 be applicable for purposes of depreciation. 31 * Sec. 2. AS 43.75.130 is amended by adding a new subsection to read:
01 (g) For purposes of this section, tax revenue collected under AS 43.75.015 02 from a person entitled to a credit under AS 43.75.035 shall be calculated as if the 03 person's tax were collected without applying the credit. 04 * Sec. 3. AS 43.77 is amended by adding a new section to read: 05 Sec. 43.77.037. Salmon product development tax credit. (a) A taxpayer 06 under this chapter may claim a salmon product development tax credit of 50 percent of 07 qualified investment in new property first placed into service on a vessel in the state in 08 the tax year. 09 (b) The tax credit claimed under this section may not 10 (1) exceed 50 percent of the taxpayer's tax liability incurred under this 11 chapter for salmon first landed in the state; or 12 (2) be applied for investment costs incurred after December 31, 2005. 13 (c) The amount of qualified investment under (a) of this section is determined 14 by multiplying the investment cost of qualified investment property by a fraction, the 15 numerator of which is the weight of salmon landed by the taxpayer in Alaska in the 16 tax year, and the denominator of which is the weight of salmon landed by the taxpayer 17 in and outside Alaska in the tax year. 18 (d) An unused credit under this section may be carried forward and applied 19 against the tax liability incurred on salmon landed in the following three tax years. 20 (e) Qualified investment costs upon which a tax credit is claimed under this 21 section may not be considered for another tax credit in this title. 22 (f) A taxpayer may not claim the tax credit allowed under this section if the 23 taxpayer is in arrears in the payment of contributions under AS 23.20 or a tax under 24 this title. For purposes of this subsection, a taxpayer is not in arrears if the 25 contribution or tax liability is under administrative or judicial appeal. 26 (g) In this section 27 (1) "first placed into service" means the moment when property is first 28 used for its intended purpose; 29 (2) "new property" means property whose original use commences 30 with the taxpayer and does not include property first used by another person; 31 (3) "qualified investment" means an investment cost in the following
01 depreciable tangible personal property with a useful life of three years or more to be 02 used to produce value-added salmon products after the heading and gutting of the 03 salmon: filleting, skinning, portioning, mincing, forming, extruding, stuffing, 04 injecting, mixing, marinating, preserving, drying, smoking, brining, packaging, blast 05 freezing, and pin bone removal equipment; 06 (4) "state" includes the state and federal waters to 200 miles seaward 07 from Alaska; 08 (5) "tax liability" means the liability for all taxes under this chapter 09 before all credits allowed by this chapter; 10 (6) "useful life" means the useful life of the property that is or would 11 be applicable for purposes of depreciation. 12 * Sec. 4. AS 43.77.060 is amended by adding a new subsection to read: 13 (f) For purposes of this section, tax revenue collected under AS 43.77.010 14 from a person entitled to a credit under AS 43.77.037 shall be calculated as if the 15 person's tax were collected without applying the credits. 16 * Sec. 5. AS 43.75.035, 43.75.130(g); and AS 43.77.037, and 43.77.060(f) are repealed. 17 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 RETROACTIVITY. Sections 1 - 4 of this Act are retroactive to January 1, 2003. 20 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 RETROACTIVITY. If the attorney general provides notification under sec. 9(2) of 23 this Act, sec. 5 of this Act is retroactive to January 1, 2003. 24 * Sec. 8. Sections 1 - 4 and 6 of this Act take effect immediately under AS 01.10.070(c). 25 * Sec. 9. Section 5 of this Act takes effect on the earlier of the following: 26 (1) January 1, 2009; or 27 (2) the date of the attorney general's notification to the lieutenant 28 governor and to the revisor of statutes that 29 (A) a court has entered final judgment that AS 43.75.035 or 30 AS 43.77.037, enacted by secs. 1 and 3 of this Act, violates the commerce 31 clause contained in art. I, sec. 8, of the United States Constitution; and
01 (B) the time for an appeal of that judgment has expired, or, if 02 an appeal was taken, a final order on the appeal has been entered that 03 AS 43.75.035 or AS 43.77.037, as enacted by secs. 1 and 3 of this Act, violates 04 the commerce clause contained in the United States Constitution. 05 * Sec. 10. Section 7 of this Act takes effect on the date of the attorney general's notification 06 under sec. 9(2) of this Act.