HB 129: "An Act relating to the fisheries product development tax credit; providing for an effective date by amending the effective date of sec. 2, ch. 31, SLA 2022; and providing for an effective date."
00 HOUSE BILL NO. 129 01 "An Act relating to the fisheries product development tax credit; providing for an 02 effective date by amending the effective date of sec. 2, ch. 31, SLA 2022; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.75.037(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 eligible fish during the tax year; or 10 (2) be claimed for property first placed into service after December 31, 11 2029 [2026]. 12 * Sec. 2. AS 43.75.037(i) is amended to read: 13 (i) The department shall develop and implement procedures by which a 14 taxpayer that is a fisheries business may submit the taxpayer's proposed investment to
01 the department and request a preliminary determination of whether the investment 02 qualifies for the fisheries product development tax credit under this section. A 03 preliminary determination by the department that the taxpayer's submission qualifies 04 for the credit is binding, unless the department determines that the taxpayer has made 05 a material misrepresentation in the taxpayer's submission. The department shall 06 make a preliminary determination as to whether a taxpayer's proposed 07 investment qualifies for a credit within 60 days after the department receives a 08 taxpayer's proposed investment submitted under this subsection. 09 * Sec. 3. AS 43.75.037(k)(1) is amended to read: 10 (1) "eligible fish" means, except as otherwise provided in (c) of this 11 section, any species of fish or shellfish [SALMON, HERRING, POLLOCK, 12 SABLEFISH, OR PACIFIC COD]; 13 * Sec. 4. AS 43.75.037(k)(4) is amended to read: 14 (4) "qualified investment" means the investment cost to purchase or 15 convert depreciable tangible personal property with a useful life of three years or more 16 that will [TO] be used predominantly to increase the quality and value of eligible 17 fish or used predominantly to perform an ice-making, processing, packaging, or 18 product-finishing function that is a significant component in producing a value-added 19 eligible fish product, including canned salmon products in can sizes other than 14.75 20 ounces or 7.5 ounces; in this paragraph, "property" 21 (A) includes 22 (i) equipment used to fillet, skin, portion, mince, form, 23 extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, 24 package, freeze, scale, grind, separate meat from bone, or remove pin 25 bones; 26 (ii) new parts necessary for, or costs associated with, 27 converting a canned salmon line to produce can sizes other than 14.75 28 ounces or 7.5 ounces; 29 (iii) conveyors used specifically in the act of producing 30 a value-added eligible fish product; 31 (iv) ice-making machines, freezers, and other
01 temperature reducing technologies; 02 (v) new canning equipment for herring products; and 03 (vi) equipment used to transform eligible fish byproduct 04 that is discarded as waste into saleable product; 05 (B) does not include 06 (i) vehicles, forklifts, conveyors not used specifically in 07 increasing the quality and value of eligible fish or the act of 08 producing a value-added eligible fish product, cranes, pumps, or other 09 equipment used to transport eligible fish or eligible fish products, 10 knives, gloves, tools, supplies and materials, equipment, other than ice- 11 making machines, that is not processing, packaging, or product- 12 finishing equipment, or other equipment, the use of which is incidental 13 to increasing the quality and value of eligible fish or the production, 14 packaging, or finishing of value-added eligible fish products; 15 (ii) the overhaul, retooling, or modification of new or 16 existing property, except for new parts necessary for, or costs 17 associated with, converting a canned salmon line to produce can sizes 18 other than 14.75 ounces or 7.5 ounces; or 19 (iii) property used predominantly to produce an eligible 20 fish product that is not taxed under this chapter; 21 * Sec. 5. AS 43.75.037(k) is amended by adding a new paragraph to read: 22 (8) "used predominantly" means used 51 percent or more of the time. 23 * Sec. 6. Section 6, ch. 31, SLA 2022, is amended to read: 24 Sec. 6. AS 43.05.230(m); AS 43.75.037, and 43.75.130(h) are repealed 25 January 1, 2030 [2027]. 26 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new 27 section to read: 28 RETROACTIVITY. This Act is retroactive to January 1, 2025. 29 * Sec. 8. Section 8, ch. 31, SLA 2022, is amended to read: 30 Sec. 8. Section 2 of this Act takes effect January 1, 2030 [2027]. 31 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).