Legislature(2025 - 2026)BUTROVICH 205
04/09/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| SB135 | |
| SB131 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 130 | TELECONFERENCED | |
| += | SB 135 | TELECONFERENCED | |
| += | SB 67 | TELECONFERENCED | |
| *+ | SB 131 | TELECONFERENCED | |
SB 130-FISHERIES PROD DEVELOPMENT TAX CREDIT
3:31:17 PM
CHAIR GIESSEL announced the consideration of SENATE BILL NO. 130
"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."
3:31:35 PM
TIM LAMPKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, said that SB 130 would extend tax
credit considerations to all fish species. It would also update
and clarify the tax credit qualifiers, components, and
innovation investments that would allow the processing fleet to
qualify and make investments eligible for tax credit
consideration.
3:32:43 PM
SENATOR HUGHES asked for an example of the technological
innovations addressed by SB 130.
3:32:55 PM
MR. LAMPKIN offered icing technologies and automations as
examples. He added that the processors could provide additional
detail.
3:33:23 PM
SENATOR KAWASAKI asked whether the qualified investments need to
be in Alaska (and Alaska-based).
3:33:39 PM
MR. LAMPKIN replied that the tax credits have historically
applied primarily to shore-based processing.
3:33:57 PM
SENATOR KAWASAKI asked for clarification regarding whether the
equipment and technologies need to be in Alaska. He asked
whether the processor could be located out-of-state.
3:34:21 PM
MR. LAMPKIN clarified that the processing must be done in-state,
for fish caught or landed in Alaskan waters.
3:34:41 PM
CHAIR GIESSEL opened public testimony on SB 120.
3:34:51 PM
SENATOR DUNBAR joined the meeting.
3:35:19 PM
TOMI MARSH, E.C. Phillips and Son, Ketchikan, Alaska, testified
in support of SB 130. She gave a brief overview of her work in
the fishing industry and of E.C. Phillips and Son. She stated
that innovation and quality have helped the fishing industry
persevere in the face of adverse market and economic conditions.
She said that equipment that elevates quality encourages full
utilization of resources. She briefly discussed how equipment
can encourage new, value-added products, which in turn help the
industry remain relevant in domestic and global markets. She
said that high quality and value-adding help E.C. Phillips and
Son diversify and access domestic and international markets. She
said SB 130 is crucial for fostering sustainability, innovation,
and economic growth in Alaska's seafood sector. Extending the
tax credit to all commercially harvested fish and shellfish
would allow seafood processers to continue investing in value-
added production, new technologies, and product diversification.
3:38:14 PM
SHANNON CARROLL, Director, Alaska Public Affairs and Fisheries
Development, Trident Seafoods, Anchorage, Alaska, testified in
support of SB 130. He provided a brief history and overview of
Trident Seafoods. He stated that SB 130 would incentivize
investments in new equipment, which would bring higher value and
quality to harvesters, customers, and communities. He pointed
towards rising costs, unfavorable currency markets, and
aggressive harvest and pricing out of Russia as challenges to
Alaska's seafood performance in the global market. He stated
that cutting costs and improving the quality and value of
Alaskan seafood products is imperative to the industry's success
and survival. This requires innovation and investment. He shared
that Trident Seafoods previously used the tax credit to improve
utilization, elevating "waste" into products for pet and health
markets.
3:40:13 PM
SINCLAIR WILT, Vice President, Westward Seafoods, Anchorage,
Alaska, testified in support of SB 130. He provided a brief
overview of Westward Seafoods. He briefly discussed how poor
market conditions are impacting the seafood industry in Alaska.
He stated that SB 130 would provide incentive to create value-
added products, which would have a positive impact on the
industry and local communities.
3:41:52 PM
TOM ENLOW, President and CEO, UniSea, Incorporated, Unalaska,
Alaska, testified in support of SB 130. He provided a brief
overview of UniSea. He stated that SB 130 would provide an
incentive to invest in equipment to create value-added products
in-state. He explained that processing for value-added products
currently happens out-of-state. He said that value-added
products would add production days to shoulder seasons and keep
Alaskans employed in local communities. He briefly discussed how
this would benefit the industry and the state. He emphasized the
importance of diversification to remain competitive. He said the
high-cost equipment required to produce value-added products is
difficult to justify; SB 130 would incentivize those equipment
purchases.
3:44:19 PM
MEGAN O'NEIL, Director of Government Affairs, Canfisco Group,
Petersburg, Alaska, testified in support of SB 130. She gave a
brief overview of Canfisco Group. She briefly discussed the
impacts and benefits of SB 130, which would expand the tax
credit and incentivize new technologies and processes that would
create value-added products while maintaining the 50 percent
cap. She stated that this would benefit fisherman, partner
communities, and the State of Alaska. She briefly discussed raw
fish taxes and explained that SB 130 would enable Canfisco to
modernize its processing plants in Bristol Bay. She explained
that the new equipment would reduce physical labor and improve
conditions.
3:46:16 PM
CHAIR GIESSEL closed public testimony on SB 130.
3:46:34 PM
SENATOR KAWASAKI asked whether the tax credit is limited to
Alaska-based companies or if an out-of-state processor would
qualify.
3:47:23 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue (DOR), Anchorage, Alaska, said that to qualify for the
tax credit, both the taxpayer and the processing equipment must
be based in Alaska.
3:48:01 PM
SENATOR DUNBAR asked how the tax law addresses floating
processors.
3:48:38 PM
MR. SPANOS deferred the question.
3:48:54 PM
CHRIS BECKER, Lead Auditor, Tax Division, Department of Revenue
(DOR), Anchorage, Alaska, replied that floating processors can
be eligible for the tax credit. He explained that eligibility is
based on the amount of processing done in state waters.
3:49:08 PM
SENATOR DUNBAR asked for further clarification. He asked whether
floating processors must be docked or home-ported in Alaska. He
shared his understanding that it would be possible for a
processor to complete all work offshore without directly
interacting with local communities. He offered a hypothetical
example to illustrate his question and asked if his
understanding is correct.
3:49:41 PM
MR. BECKER replied that this is correct; however, the tax credit
from that activity would be shared with the local community.
3:49:54 PM
SENATOR KAWASAKI asked about at-sea processors. He shared his
understanding that "qualified investment" means investment cost
to purchase and convert depreciable tangible personal property.
He asked how DOR would determine the portion contributing to the
qualified investment.
3:50:50 PM
MR. BECKER answered that the credit in SB 130 applies to the
fisheries business tax. He explained that processors liable for
the fisheries resource landing tax are not eligible for the
credit unless the processing is done in state waters.
3:51:13 PM
CHAIR GIESSEL invited Julie Decker, president of Pacific Seafood
Processors Association, to comment.
3:51:24 PM
[JULIE DECKER, President, Pacific Seafood Processors
Association, Wrangell, Alaska,] said that her understanding of
the questions corresponds with that of the Department of
Revenue.
3:51:53 PM
CHAIR GIESSEL held SB 130 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 130 - Support Letter - RDC.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 130 |
| SB 130 - Support Letter - Trident - 4.8.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 130 |
| SB 130 Fiscal Note DOR.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 130 |
| SB 130 Seafood Product Development Tax Credit.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 130 |
| SB 130 - Support Letter - PSPA - 3.27.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 130 |
| SB 131 Transmittal Letter 3.13.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 131 |
| SB 131 Sectional Analysis version A 3.17.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 131 |
| SB 131 version A 3.14.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 131 |
| SB 131 Fiscal Note DCCED-ASMI 3.13.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 131 |
| SB 131 Fiscal Note DCCED-DCRA 3.13.25.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 131 |
| SB 135 Fiscal Note DCCED.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 135 |
| SB 135 Fiscal Note DOR.pdf |
SRES 4/9/2025 3:30:00 PM |
SB 135 |