Legislature(2025 - 2026)GRUENBERG 120
03/27/2025 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB135 | |
| HB129 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 135 | TELECONFERENCED | |
| += | HB 129 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 129-FISHERIES PROD DEVELOPMENT TAX CREDIT
11:01:13 AM
CHAIR STUTES announced that the final order of business would be
HOUSE BILL NO. 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."
CHAIR STUTES noted that an amendment was offered to the bill and
asked whether any of the committee members wanted a
reintroduction to the bill.
11:02:38 AM
REPRESENTATIVE MCCABE moved to adopt Amendment 1 to HB 129,
labeled 34-LS0647\N.2, Bergerud/Bullard, 3/26/25, which read as
follows:
Page 1, following line 11:
Insert new bill sections to read:
"* Sec. 2. AS 43.75.037(c) is amended to read:
(c) If the property for which a tax credit is
claimed is installed on a vessel, the amount of
qualified investment under (a) of this section is
determined by multiplying the investment cost of the
qualified investment property by a fraction, the
numerator of which is the weight of raw macroalgae and
raw eligible fish processed on the vessel by the
taxpayer in the state in the tax year in which the
property is first placed into service, and the
denominator of which is the weight of raw macroalgae
and raw eligible fish processed on the vessel by the
taxpayer in and outside of the state in the tax year
in which the property is first placed into service. In
this subsection, "eligible fish" does not include
pollock, sablefish, or Pacific cod.
* Sec. 3. AS 43.75.037(g) is amended to read:
(g) If, during a tax year, property for which a
credit was claimed under this section is disposed of
by the taxpayer, ceases to be qualified investment
property, or is removed from service in the state, the
tax due under this chapter is increased by the
recapture percentage of the aggregate decrease in the
credit allowed under this section for all prior tax
years that would have resulted solely from reducing to
zero the credit allowed for the qualified investment
property under this section. The amount of tax credit
attributable to the qualified investment that is
carried forward from prior tax years is terminated as
of the first day of the tax year in which the
qualified investment property is disposed of by the
taxpayer, ceases to be qualified investment property,
or is removed from service in the state. For purposes
of this subsection,
(1) the recapture percentage during the
year in which the property is first placed into
service or during the first year following the year in
which the property is first placed into service is 100
percent;
(2) the recapture percentage during the
second year following the year in which the property
is first placed into service is 75 percent;
(3) the recapture percentage during the
third year following the year in which the property is
first placed into service is 50 percent;
(4) the recapture percentage during the
fourth or later year following the year in which the
property is first placed into service is zero percent;
(5) qualified investment property used on a
vessel is considered to have been removed from the
state on the first day of a tax year in which the
proportion of raw macroalgae and raw eligible fish
processed in the state on the vessel is less than 50
percent of total weight of raw macroalgae and raw
eligible fish processed on the vessel in and outside
of the state."
Renumber the following bill sections accordingly.
Page 2, line 16:
Following "to":
Insert "harvest or process macroalgae,"
Following "of":
Insert "macroalgae or"
Page 2, line 17:
Delete "or used predominantly to"
Insert ", or"
Page 3, line 2:
Delete "and"
Insert "[AND]"
Page 3, line 4, following "product;":
Insert "and
(vii) equipment used to harvest or process
macroalgae;"
Page 3, line 7, following "of":
Insert "macroalgae or"
Page 3, line 13, following "of":
Insert "macroalgae or"
11:02:48 AM
CHAIR STUTES objected for the purpose of discussion.
11:02:50 AM
REPRESENTATIVE MCCABE said that Amendment 1 would expand the
fisheries product development tax credit to support the harvest
and processing of microalgae such as kelp. He said that as
Alaska's mariculture industry continues to grow, this amendment
would encourage fisheries businesses to invest in processing
equipment and infrastructure specific to microalgae. It would
ensure that this emerging sector can access the same economic
development tools available to traditional fisheries.
11:03:43 AM
CHAIR STUTES removed her objection to Amendment 1. There being
no further objection, Amendment 1 was adopted.
11:03:58 AM
REPRESENTATIVE EDGMON moved to report HB 129, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 129(FSH) was
reported from the House Special Committee on Fisheries.