Enrolled SB 33: Relating to a fisheries product development tax credit; and providing for an effective date.
00Enrolled SB 33 01 Relating to a fisheries product development tax credit; and providing for an effective date. 02 _______________ 03 * Section 1. AS 40.25.100(a) is amended to read: 04 (a) Information in the possession of the Department of Revenue that discloses 05 the particulars of the business or affairs of a taxpayer or other person, including 06 information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement 07 under AS 38.05.020(b)(12), is not a matter of public record, except as provided in 08 AS 43.05.230(i) - (m) [AS 43.05.230(i) - (l)] or for purposes of investigation and law 09 enforcement. The information shall be kept confidential except when its production is 10 required in an official investigation, administrative adjudication under AS 43.05.405 - 11 43.05.499, or court proceeding. These restrictions do not prohibit the publication of 12 statistics presented in a manner that prevents the identification of particular reports 13 and items, prohibit the publication of tax lists showing the names of taxpayers who are
01 delinquent and relevant information that may assist in the collection of delinquent 02 taxes, or prohibit the publication of records, proceedings, and decisions under 03 AS 43.05.405 - 43.05.499. 04 * Sec. 2. AS 40.25.100(a), as amended by sec. 1 of this Act, is amended to read: 05 (a) Information in the possession of the Department of Revenue that discloses 06 the particulars of the business or affairs of a taxpayer or other person, including 07 information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement 08 under AS 38.05.020(b)(12), is not a matter of public record, except as provided in 09 AS 43.05.230(i) - (l) [AS 43.05.230(i) - (m)] or for purposes of investigation and law 10 enforcement. The information shall be kept confidential except when its production is 11 required in an official investigation, administrative adjudication under AS 43.05.405 - 12 43.05.499, or court proceeding. These restrictions do not prohibit the publication of 13 statistics presented in a manner that prevents the identification of particular reports 14 and items, prohibit the publication of tax lists showing the names of taxpayers who are 15 delinquent and relevant information that may assist in the collection of delinquent 16 taxes, or prohibit the publication of records, proceedings, and decisions under 17 AS 43.05.405 - 43.05.499. 18 * Sec. 3. AS 43.05.230 is amended by adding a new subsection to read: 19 (m) The number of recipients and the total amount of tax credits claimed for 20 each type of eligible fish under AS 43.75.037 is public information. In this subsection, 21 "eligible fish" has the meaning given in AS 43.75.037(k). 22 * Sec. 4. AS 43.75 is amended by adding a new section to read: 23 Sec. 43.75.037. Fisheries product development tax credit. (a) Except as 24 provided in (f) of this section, a taxpayer that is a fisheries business may claim a 25 fisheries product development tax credit of 50 percent of qualified investment in new 26 property first placed into service in a shore-based plant or on a vessel in the state in the 27 tax year. 28 (b) The amount of the tax credit applied against taxes under this section may 29 not 30 (1) exceed 50 percent of the taxpayer's tax liability incurred under this 31 chapter for processing of eligible fish during the tax year; or
01 (2) be claimed for property first placed into service after December 31, 02 2026. 03 (c) If the property for which a tax credit is claimed is installed on a vessel, the 04 amount of qualified investment under (a) of this section is determined by multiplying 05 the investment cost of the qualified investment property by a fraction, the numerator 06 of which is the weight of raw eligible fish processed on the vessel by the taxpayer in 07 the state in the tax year in which the property is first placed into service, and the 08 denominator of which is the weight of raw eligible fish processed on the vessel by the 09 taxpayer in and outside of the state in the tax year in which the property is first placed 10 into service. In this subsection, "eligible fish" does not include pollock, sablefish, or 11 Pacific cod. 12 (d) An unused credit under this section may be carried forward and applied 13 against the tax liability incurred on eligible fish in the following three tax years. 14 (e) Qualified investment costs on which a tax credit is claimed under this 15 section may not be considered for another tax credit in this title. 16 (f) A taxpayer may not claim the tax credit allowed under this section 17 (1) if the taxpayer is in arrears in the payment of assessments under 18 AS 16.51.120, contributions under AS 23.20, or taxes or assessments collected or 19 owed under this title; for purposes of this paragraph, a taxpayer is not in arrears if the 20 liability for the assessment, contribution, or tax is under administrative or judicial 21 appeal; 22 (2) for property that is the same type of property as property 23 (A) on which a tax credit has been claimed under this section; 24 (B) that has been removed from the state; and 25 (C) that was purchased in the previous 10 years; or 26 (3) for property installed on a vessel used primarily to process pollock, 27 sablefish, or Pacific cod. 28 (g) If, during a tax year, property for which a credit was claimed under this 29 section is disposed of by the taxpayer, ceases to be qualified investment property, or is 30 removed from service in the state, the tax due under this chapter is increased by the 31 recapture percentage of the aggregate decrease in the credit allowed under this section
01 for all prior tax years that would have resulted solely from reducing to zero the credit 02 allowed for the qualified investment property under this section. The amount of tax 03 credit attributable to the qualified investment that is carried forward from prior tax 04 years is terminated as of the first day of the tax year in which the qualified investment 05 property is disposed of by the taxpayer, ceases to be qualified investment property, or 06 is removed from service in the state. For purposes of this subsection, 07 (1) the recapture percentage during the year in which the property is 08 first placed into service or during the first year following the year in which the 09 property is first placed into service is 100 percent; 10 (2) the recapture percentage during the second year following the year 11 in which the property is first placed into service is 75 percent; 12 (3) the recapture percentage during the third year following the year in 13 which the property is first placed into service is 50 percent; 14 (4) the recapture percentage during the fourth or later year following 15 the year in which the property is first placed into service is zero percent; 16 (5) qualified investment property used on a vessel is considered to 17 have been removed from the state on the first day of a tax year in which the proportion 18 of raw eligible fish processed in the state on the vessel is less than 50 percent of total 19 weight of raw eligible fish processed on the vessel in and outside of the state. 20 (h) The amount of a tax credit recaptured under (g)(1) - (3) of this section may 21 not be included in the determination of the amount of that tax credit that is allowable 22 under this section. 23 (i) The department shall develop and implement procedures by which a 24 taxpayer that is a fisheries business may submit the taxpayer's proposed investment to 25 the department and request a preliminary determination of whether the investment 26 qualifies for the fisheries product development tax credit under this section. A 27 preliminary determination by the department that the taxpayer's submission qualifies 28 for the credit is binding, unless the department determines that the taxpayer has made 29 a material misrepresentation in the taxpayer's submission. 30 (j) To claim a credit under this section, a taxpayer shall agree that the 31 department may make public the number of recipients and the total amount of tax
01 credits claimed for each type of eligible fish. Notwithstanding any contrary provision 02 in AS 40.25.100 or AS 43.05.230, the number of recipients and the total amount of tax 03 credits claimed for each type of eligible fish is public information. 04 (k) In this section, 05 (1) "eligible fish" means, except as otherwise provided in (c) of this 06 section, salmon, herring, pollock, sablefish, or Pacific cod; 07 (2) "first placed into service" means the moment when property is first 08 used for its intended purpose; 09 (3) "new property" means property whose original use begins with the 10 taxpayer and does not include property first used by another person; 11 (4) "qualified investment" means the investment cost to purchase or 12 convert depreciable tangible personal property with a useful life of three years or more 13 to be used predominantly to perform an ice-making, processing, packaging, or 14 product-finishing function that is a significant component in producing a value-added 15 eligible fish product, including canned salmon products in can sizes other than 14.75 16 ounces or 7.5 ounces; in this paragraph, "property" 17 (A) includes 18 (i) equipment used to fillet, skin, portion, mince, form, 19 extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, 20 package, freeze, scale, grind, separate meat from bone, or remove pin 21 bones; 22 (ii) new parts necessary for, or costs associated with, 23 converting a canned salmon line to produce can sizes other than 14.75 24 ounces or 7.5 ounces; 25 (iii) conveyors used specifically in the act of producing 26 a value-added eligible fish product; 27 (iv) ice-making machines; 28 (v) new canning equipment for herring products; and 29 (vi) equipment used to transform eligible fish byproduct 30 that is discarded as waste into saleable product; 31 (B) does not include
01 (i) vehicles, forklifts, conveyors not used specifically in 02 the act of producing a value-added eligible fish product, cranes, pumps, 03 or other equipment used to transport eligible fish or eligible fish 04 products, knives, gloves, tools, supplies and materials, equipment, other 05 than ice-making machines, that is not processing, packaging, or 06 product-finishing equipment, or other equipment, the use of which is 07 incidental to the production, packaging, or finishing of value-added 08 eligible fish products; 09 (ii) the overhaul, retooling, or modification of new or 10 existing property, except for new parts necessary for, or costs 11 associated with, converting a canned salmon line to produce can sizes 12 other than 14.75 ounces or 7.5 ounces; or 13 (iii) property used predominantly to produce an eligible 14 fish product that is not taxed under this chapter; 15 (5) "tax liability" means the liability for all taxes under this chapter 16 before all credits allowed by this chapter; 17 (6) "useful life" means the useful life of the property that is or would 18 be applicable for purposes of depreciation; 19 (7) "value-added eligible fish product" means the product of an eligible 20 fish that is processed beyond heading, gutting, or separation in a manner that enhances 21 the value or quality of the eligible fish product, such as shelf-stable, retort pouched, 22 smoked, pickled, or filleted eligible fish, ikura, leather, jerky, or a saleable product 23 made from waste byproduct of eligible fish; "value-added eligible fish product" does 24 not include an eligible fish or eligible fish product that 25 (A) has been subjected to only one or more of heading, gutting, 26 freezing, or packaging; 27 (B) is salmon skeins or other unprocessed salmon or 28 unprocessed eligible fish products, whether fresh or frozen; or 29 (C) is produced outside of the state. 30 * Sec. 5. AS 43.75.130 is amended by adding a new subsection to read: 31 (h) For purposes of this section, tax revenue collected under AS 43.75.015
01 from a person entitled to a credit under AS 43.75.037 is calculated as if the person's 02 tax were collected without applying the credit. Tax revenue collected does not include 03 the amount of a tax credit recaptured under AS 43.75.037(g). 04 * Sec. 6. AS 43.05.230(m); AS 43.75.037, and 43.75.130(h) are repealed January 1, 2027. 05 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 APPLICABILITY. Notwithstanding AS 43.75.037(a), added by sec. 4 of this Act, a 08 taxpayer may only claim a tax credit under AS 43.75.037, added by sec. 4 of this Act, for new 09 property first placed into service on or after the effective date of sec. 4 of this Act. 10 * Sec. 8. Section 2 of this Act takes effect January 1, 2027. 11 * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect immediately under 12 AS 01.10.070(c).