Legislature(2005 - 2006)CAPITOL 124
05/07/2005 09:30 AM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB102 | |
| SB164 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 164 | TELECONFERENCED | |
| += | SB 102 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 164-SALMON PRODUCT DEVELOPMENT TAX CREDIT CO-CHAIR SAMUELS announced that the final order of business would be SENATE BILL NO. 164 "An Act relating to the salmon product development tax credit; providing for an effective date by amending an effective date in sec. 7, ch. 57, SLA 2003; and providing for an effective date." TIM BARRY, Staff to Senator Bert Stedman, Alaska State Legislature, said SB 164 extends the deadline for salmon processors in Alaska to receive a salmon product development tax credit. Currently, processors can claim the credit for property placed into service by the end of this calendar year, and SB 164 extends it by three years. He said the legislation also makes minor changes to clarify what is eligible for the tax credit to more effectively achieve the goal of encouraging seafood processors to develop innovative, value-added salmon products. MR. BARRY stated that the original legislation was proposed by the Joint Legislative Salmon Industry Task Force to encourage industry to take investment risks to produce new salmon products. It was drafted in consultation with the Department of Revenue to ensure efficiency and effectiveness, he added. 9:45:55 AM REPRESENTATIVE SEATON asked about the date on page 3, line 16. MR. BARRY said the January 1, 2012 date reflects the fact that people have three years to make a claim. CO-CHAIR SAMUELS asked for examples of past claims. STEPHANIE MATTSON, Vice President, Pacific Seafood Processors Association (PSPA), said PSPA represents a majority of the major seafood processors in Alaska, and it supports SB 164 because it helps the industry in marginal revenue times. She said three processors have used the credit to put in new filet lines, and freezing capacity has been increased. Some processors spoke in recent hearings of fuller utilization in terms of fish oils, she noted. The task force put this idea forward because a similar white fish tax credit was successful. She said the extension is needed because it took time to get the regulations final. REED STOOPS, Ocean Beauty Seafood, Juneau, said Ocean Beauty has eight plants in Alaska and handles more salmon than any other processor, and it supports the bill. The Excursion Inlet plant now produces pink salmon burgers, and it vacuum packs filets to produce a higher value product, he noted. As a result, the company added 40 new seasonal jobs, and the price to fishermen is going up. He said the credit means doing this work in Alaska instead of elsewhere or not at all. He concluded that the company has future opportunities in its other Alaska plants. 9:51:18 AM REPRESENTATIVE CRAWFORD asked how much the credits have been worth, so far. JERRY BURNETT, Special Assistant to the Commissioner, Department of Revenue, Juneau, said the credits cost about $1.75 million as a direct reduction in taxes. But if the fish are worth more, taxes are higher, and he said it's difficult tell how much value is added, but SB 164 should generate net positive revenue. 9:52:35 AM REPRESENTATIVE SEATON asked about equipment purchased for salmon production and then used for other products. MR. BURNETT said he is not aware of that occurring. MR. BARRY said SB 164 tries to clarify exactly what qualifies for the credit, but dual use has not been a problem. 9:53:59 AM REPRESENTATIVE SEATON moved to report CSSB 164(FIN), labeled 24- LS0589\S out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSSB 164(FIN) was passed out of committee.
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