00 Enrolled HB 321 01 Relating to the salmon product development tax credit; providing for an effective date by 02 amending an effective date in sec. 7, ch. 57, SLA 2003, as amended by sec. 4, ch. 3, SLA 03 2006; and providing for an effective date. 04 _______________ 05  * Section 1. AS 43.75.035(b) is amended to read: 06 (b) The amount of the tax credit applied against taxes under this section may 07 not 08 (1) exceed 50 percent of the taxpayer's tax liability incurred under this 09 chapter for processing of salmon during the tax year; or 10 (2) be claimed for property first placed into service after December 31, 11 2011 [2008]. 12  * Sec. 2. AS 43.75.035(i)(3) is amended to read: 13 (3) "qualified investment" means the investment cost in depreciable 14 tangible personal property with a useful life of three years or more to be used 01 predominantly to perform a processing, packaging, or product finishing function that 02 is a significant component in producing value-added salmon products beyond gutting 03 of the salmon; in this paragraph, "property" 04 (A) includes 05 (i) filleting, skinning, portioning, mincing, forming, 06 extruding, stuffing, injecting, mixing, marinating, preserving, drying, 07 smoking, brining, packaging, blast freezing, or pin bone removal 08 equipment; [AND] 09 (ii) new parts to convert an existing can seamer to pop- 10 top can production; and  11 (iii) conveyors used specifically in the act of  12 producing a value-added salmon product; 13 (B) does not include 14 (i) vehicles, forklifts, conveyors not used specifically  15 in the act of producing a value-added salmon product, cranes, 16 pumps, or other equipment used to transport salmon or salmon 17 products, knives, gloves, tools, supplies and materials, equipment that 18 is not processing, packaging, or product finishing equipment, or other 19 equipment the use of which is incidental to the production, packaging, 20 or finishing of value-added salmon products; or 21 (ii) the overhaul, retooling, or modification of new or 22 existing property, except for new parts to convert an existing can 23 seamer to pop-top can production; 24  * Sec. 3. AS 43.75.035 is amended by adding a new subsection to read: 25 (j) The department shall develop and implement procedures by which a 26 taxpayer that is a fisheries business may submit the taxpayer's proposed investment to 27 the department and request a preliminary determination of whether the investment 28 qualifies for the salmon product development tax credit under this section. A 29 preliminary determination by the department that the taxpayer's submission qualifies 30 for the credit is binding, unless the department determines that the taxpayer has made 31 a material misrepresentation in the taxpayer's submission. 01  * Sec. 4. Section 7, ch. 57, SLA 2003, as amended by sec. 4, ch. 3, SLA 2006, is amended 02 to read: 03 Sec. 7. Section 3 of this Act takes effect on the earlier of the following: 04 (1) January 1, 2015 [2012]; or 05 (2) the date of the attorney general's notification to the lieutenant 06 governor and to the revisor of statutes that 07 (A) a court has entered final judgment that AS 43.75.035 or 08 43.75.036, added by sec. 1, ch. 57, SLA 2003 [OF THIS ACT], violates the 09 commerce clause contained in art. I, sec. 8, United States Constitution; and 10 (B) the time for an appeal of that judgment has expired, or, if 11 an appeal was taken, a final order on the appeal has been entered that 12 AS 43.75.035 or 43.75.036, added by sec. 1, ch. 57, SLA 2003 [OF THIS 13 ACT], violates the commerce clause contained in the United States 14 Constitution. 15  * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).