SB 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."
00 SENATE BILL NO. 164 01 "An Act relating to the salmon product development tax credit; providing for an 02 effective date by amending an effective date in sec. 7, ch. 57, SLA 2003; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 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 2008 [2005]. 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 02 that is a significant component in producing [TO PRODUCE] value-added salmon 03 products beyond gutting of the salmon; in this paragraph, "property" 04 (A) includes filleting, skinning, portioning, mincing, forming, 05 extruding, stuffing, injecting, mixing, marinating, preserving, drying, smoking, 06 brining, packaging, blast freezing, or pin bone removal equipment; 07 (B) does not include vehicles, forklifts, conveyors, cranes, 08 pumps or other equipment used to transport salmon or salmon products, 09 knives, gloves, tools, supplies and materials, equipment that is not 10 processing, packaging, or product finishing equipment, or other 11 equipment the use of which is incidental to the production, packaging, or 12 finishing of value-added salmon products; 13 * Sec. 3. AS 43.75.035(i) is amended by adding a new paragraph to read: 14 (6) "value-added salmon product" means the product of a salmon that 15 is processed beyond heading, gutting, or separation in a manner that materially 16 enhances the value of the salmon product, such as shelf-stable, retort pouched, 17 smoked, pickled, or filleted salmon, ikura, leather, or jerky; "value-added salmon 18 product" does not include a salmon or salmon product that 19 (A) has been subjected to only one or more of heading, gutting, 20 freezing, packaging, quality assurance practices, or value retention practices; 21 (B) is salmon skeins or other unprocessed salmon products 22 whether fresh or frozen; 23 (C) is canned; or 24 (D) is produced out of the state. 25 * Sec. 4. Section 7, ch. 57, SLA 2003, is amended to read: 26 Sec. 7. Section 3 of this Act takes effect on the earlier of the following: 27 (1) January 1, 2012 [2009]; or 28 (2) the date of the attorney general's notification to the lieutenant 29 governor and to the revisor of statutes that 30 (A) a court has entered final judgment that AS 43.75.035 or 31 43.75.036, added by sec. 1 of this Act, violates the commerce clause contained
01 in art. I, sec. 8, United States Constitution; and 02 (B) the time for an appeal of that judgment has expired, or, if 03 an appeal was taken, a final order on the appeal has been entered that 04 AS 43.75.035 or 43.75.036, added by sec. 1 of this Act, violates the commerce 05 clause contained in the United States Constitution. 06 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).