AK
Alaska House Bill HB129

Alaska 2025-2026 Regular Session

Alaska House Bill HB129 Compare Versions

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2-HB0129b -1- CSHB 129(FSH)
2+HB0129a -1- HB 129
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10-CS FOR HOUSE BILL NO. 129(FSH)
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11+ HOUSE BILL NO. 129
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-FOURTH LEGISLATURE - FIRST SESSION
1516
16-BY THE HOUSE SPECIAL COMMITTEE ON FISHERIES
17+BY THE HOUSE SPECIAL COMMITTEE ON FISHERIES BY REQUEST OF THE J OINT LEGISLATIVE
18+TASK FORCE EVALUATING ALASKA'S SEAFOOD INDUSTRY
1719
18-Offered: 3/28/25
19-Referred: Finance
20+Introduced: 3/10/25
21+Referred: House Special Committee on Fisheries, Finance
2022
21-Sponsor(s): HOUSE SPECIAL COMMITTEE ON FISHERIES BY REQUEST O F THE JOINT
22-LEGISLATIVE TASK FORCE EVALUATING ALASKA'S SEAFOOD INDUSTRY
23+
2324 A BILL
2425
2526 FOR AN ACT ENTITLED
2627
2728 "An Act relating to the fisheries product development tax credit; providing for an 1
2829 effective date by amending the effective date of sec. 2, ch. 31, SLA 2022; and providing 2
2930 for an effective date." 3
3031 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
3132 * Section 1. AS 43.75.037(b) is amended to read: 5
3233 (b) The amount of the tax credit applied against taxes under this section may 6
3334 not 7
3435 (1) exceed 50 percent of the taxpayer's tax liability incurred under this 8
3536 chapter for processing of eligible fish during the tax year; or 9
3637 (2) be claimed for property first placed into service after December 31, 10
3738 2029 [2026].
3839 11
39- * Sec. 2. AS 43.75.037(c) is amended to read: 12
40-(c) If the property for which a tax credit is claimed is installed on a vessel, the 13
41-amount of qualified investment under (a) of this section is determined by multiplying 14 34-LS0647\I
42-CSHB 129(FSH) -2- HB0129b
40+ * Sec. 2. AS 43.75.037(i) is amended to read: 12
41+(i) The department shall develop and implement procedures by which a 13
42+taxpayer that is a fisheries business may submit the taxpayer's proposed investment to 14 34-LS0647\N
43+HB 129 -2- HB0129a
4344 New Text Underlined [DELETED TEXT BRACKETED]
4445
45-the investment cost of the qualified investment property by a fraction, the numerator 1
46-of which is the weight of raw macroalgae and raw eligible fish processed on the 2
47-vessel by the taxpayer in the state in the tax year in which the property is first placed 3
48-into service, and the denominator of which is the weight of raw macroalgae and raw 4
49-eligible fish processed on the vessel by the taxpayer in and outside of the state in the 5
50-tax year in which the property is first placed into service. In this subsection, "eligible 6
51-fish" does not include pollock, sablefish, or Pacific cod. 7
52- * Sec. 3. AS 43.75.037(g) is amended to read: 8
53-(g) If, during a tax year, property for which a credit was claimed under this 9
54-section is disposed of by the taxpayer, ceases to be qualified investment property, or is 10
55-removed from service in the state, the tax due under this chapter is increased by the 11
56-recapture percentage of the aggregate decrease in the credit allowed under this section 12
57-for all prior tax years that would have resulted solely from reducing to zero the credit 13
58-allowed for the qualified investment property under this section. The amount of tax 14
59-credit attributable to the qualified investment that is carried forward from prior tax 15
60-years is terminated as of the first day of the tax year in which the qualified investment 16
61-property is disposed of by the taxpayer, ceases to be qualified investment property, or 17
62-is removed from service in the state. For purposes of this subsection, 18
63-(1) the recapture percentage during the year in which the property is 19
64-first placed into service or during the first year following the year in which the 20
65-property is first placed into service is 100 percent; 21
66-(2) the recapture percentage during the second year following the year 22
67-in which the property is first placed into service is 75 percent; 23
68-(3) the recapture percentage during the third year following the year in 24
69-which the property is first placed into service is 50 percent; 25
70-(4) the recapture percentage during the fourth or later year following 26
71-the year in which the property is first placed into service is zero percent; 27
72-(5) qualified investment property used on a vessel is considered to 28
73-have been removed from the state on the first day of a tax year in which the proportion 29
74-of raw macroalgae and raw eligible fish processed in the state on the vessel is less 30
75-than 50 percent of total weight of raw macroalgae and raw eligible fish processed on 31 34-LS0647\I
76-HB0129b -3- CSHB 129(FSH)
46+the department and request a preliminary determination of whether the investment 1
47+qualifies for the fisheries product development tax credit under this section. A 2
48+preliminary determination by the department that the taxpayer's submission qualifies 3
49+for the credit is binding, unless the department determines that the taxpayer has made 4
50+a material misrepresentation in the taxpayer's submission. The department shall 5
51+make a preliminary determination as to whether a taxpayer's proposed 6
52+investment qualifies for a credit within 60 days after the department receives a 7
53+taxpayer's proposed investment submitted under this subsection. 8
54+ * Sec. 3. AS 43.75.037(k)(1) is amended to read: 9
55+(1) "eligible fish" means, except as otherwise provided in (c) of this 10
56+section, any species of fish or shellfish [SALMON, HERRING, POLLOCK, 11
57+SABLEFISH, OR PACIFIC COD]; 12
58+ * Sec. 4. AS 43.75.037(k)(4) is amended to read: 13
59+(4) "qualified investment" means the investment cost to purchase or 14
60+convert depreciable tangible personal property with a useful life of three years or more 15
61+that will [TO] be used predominantly to increase the quality and value of eligible 16
62+fish or used predominantly to perform an ice-making, processing, packaging, or 17
63+product-finishing function that is a significant component in producing a value-added 18
64+eligible fish product, including canned salmon products in can sizes other than 14.75 19
65+ounces or 7.5 ounces; in this paragraph, "property" 20
66+(A) includes 21
67+(i) equipment used to fillet, skin, portion, mince, form, 22
68+extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, 23
69+package, freeze, scale, grind, separate meat from bone, or remove pin 24
70+bones; 25
71+(ii) new parts necessary for, or costs associated with, 26
72+converting a canned salmon line to produce can sizes other than 14.75 27
73+ounces or 7.5 ounces; 28
74+(iii) conveyors used specifically in the act of producing 29
75+a value-added eligible fish product; 30
76+(iv) ice-making machines, freezers, and other 31 34-LS0647\N
77+HB0129a -3- HB 129
7778 New Text Underlined [DELETED TEXT BRACKETED]
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79-the vessel in and outside of the state. 1
80- * Sec. 4. AS 43.75.037(i) is amended to read: 2
81-(i) The department shall develop and implement procedures by which a 3
82-taxpayer that is a fisheries business may submit the taxpayer's proposed investment to 4
83-the department and request a preliminary determination of whether the investment 5
84-qualifies for the fisheries product development tax credit under this section. A 6
85-preliminary determination by the department that the taxpayer's submission qualifies 7
86-for the credit is binding, unless the department determines that the taxpayer has made 8
87-a material misrepresentation in the taxpayer's submission. The department shall 9
88-make a preliminary determination as to whether a taxpayer's proposed 10
89-investment qualifies for a credit within 60 days after the department receives a 11
90-taxpayer's proposed investment submitted under this subsection. 12
91- * Sec. 5. AS 43.75.037(k)(1) is amended to read: 13
92-(1) "eligible fish" means, except as otherwise provided in (c) of this 14
93-section, any species of fish or shellfish [SALMON, HERRING, POLLOCK, 15
94-SABLEFISH, OR PACIFIC COD]; 16
95- * Sec. 6. AS 43.75.037(k)(4) is amended to read: 17
96-(4) "qualified investment" means the investment cost to purchase or 18
97-convert depreciable tangible personal property with a useful life of three years or more 19
98-that will [TO] be used predominantly to harvest or process macroalgae, increase 20
99-the quality and value of macroalgae or eligible fish, or perform an ice-making, 21
100-processing, packaging, or product-finishing function that is a significant component in 22
101-producing a value-added eligible fish product, including canned salmon products in 23
102-can sizes other than 14.75 ounces or 7.5 ounces; in this paragraph, "property" 24
103-(A) includes 25
104-(i) equipment used to fillet, skin, portion, mince, form, 26
105-extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, 27
106-package, freeze, scale, grind, separate meat from bone, or remove pin 28
107-bones; 29
108-(ii) new parts necessary for, or costs associated with, 30
109-converting a canned salmon line to produce can sizes other than 14.75 31 34-LS0647\I
110-CSHB 129(FSH) -4- HB0129b
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113-ounces or 7.5 ounces; 1
114-(iii) conveyors used specifically in the act of producing 2
115-a value-added eligible fish product; 3
116-(iv) ice-making machines, freezers, and other 4
117-temperature reducing technologies; 5
118-(v) new canning equipment for herring products; 6
119-[AND] 7
120-(vi) equipment used to transform eligible fish byproduct 8
121-that is discarded as waste into saleable product; and 9
122-(vii) equipment used to harvest or process 10
123-macroalgae; 11
124-(B) does not include 12
125-(i) vehicles, forklifts, conveyors not used specifically in 13
126-increasing the quality and value of macroalgae or eligible fish or 14
127-the act of producing a value-added eligible fish product, cranes, pumps, 15
128-or other equipment used to transport eligible fish or eligible fish 16
129-products, knives, gloves, tools, supplies and materials, equipment, other 17
130-than ice-making machines, that is not processing, packaging, or 18
131-product-finishing equipment, or other equipment, the use of which is 19
132-incidental to increasing the quality and value of macroalgae or 20
133-eligible fish or the production, packaging, or finishing of value-added 21
134-eligible fish products; 22
135-(ii) the overhaul, retooling, or modification of new or 23
136-existing property, except for new parts necessary for, or costs 24
137-associated with, converting a canned salmon line to produce can sizes 25
138-other than 14.75 ounces or 7.5 ounces; or 26
139-(iii) property used predominantly to produce an eligible 27
140-fish product that is not taxed under this chapter; 28
141- * Sec. 7. AS 43.75.037(k) is amended by adding a new paragraph to read: 29
142-(8) "used predominantly" means used 51 percent or more of the time. 30
143- * Sec. 8. Section 6, ch. 31, SLA 2022, is amended to read: 31 34-LS0647\I
144-HB0129b -5- CSHB 129(FSH)
145- New Text Underlined [DELETED TEXT BRACKETED]
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147-Sec. 6. AS 43.05.230(m); AS 43.75.037, and 43.75.130(h) are repealed 1
148-January 1, 2030 [2027]. 2
149- * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new 3
150-section to read: 4
151-RETROACTIVITY. This Act is retroactive to January 1, 2025. 5
152- * Sec. 10. Section 8, ch. 31, SLA 2022, is amended to read: 6
153-Sec. 8. Section 2 of this Act takes effect January 1, 2030 [2027]. 7
154- * Sec. 11. This Act takes effect immediately under AS 01.10.070(c). 8
80+temperature reducing technologies; 1
81+(v) new canning equipment for herring products; and 2
82+(vi) equipment used to transform eligible fish byproduct 3
83+that is discarded as waste into saleable product; 4
84+(B) does not include 5
85+(i) vehicles, forklifts, conveyors not used specifically in 6
86+increasing the quality and value of eligible fish or the act of 7
87+producing a value-added eligible fish product, cranes, pumps, or other 8
88+equipment used to transport eligible fish or eligible fish products, 9
89+knives, gloves, tools, supplies and materials, equipment, other than ice-10
90+making machines, that is not processing, packaging, or product-11
91+finishing equipment, or other equipment, the use of which is incidental 12
92+to increasing the quality and value of eligible fish or the production, 13
93+packaging, or finishing of value-added eligible fish products; 14
94+(ii) the overhaul, retooling, or modification of new or 15
95+existing property, except for new parts necessary for, or costs 16
96+associated with, converting a canned salmon line to produce can sizes 17
97+other than 14.75 ounces or 7.5 ounces; or 18
98+(iii) property used predominantly to produce an eligible 19
99+fish product that is not taxed under this chapter; 20
100+ * Sec. 5. AS 43.75.037(k) is amended by adding a new paragraph to read: 21
101+(8) "used predominantly" means used 51 percent or more of the time. 22
102+ * Sec. 6. Section 6, ch. 31, SLA 2022, is amended to read: 23
103+Sec. 6. AS 43.05.230(m); AS 43.75.037, and 43.75.130(h) are repealed 24
104+January 1, 2030 [2027]. 25
105+ * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new 26
106+section to read: 27
107+RETROACTIVITY. This Act is retroactive to January 1, 2025. 28
108+ * Sec. 8. Section 8, ch. 31, SLA 2022, is amended to read: 29
109+Sec. 8. Section 2 of this Act takes effect January 1, 2030 [2027]. 30
110+ * Sec. 9. This Act takes effect immediately under AS 01.10.070(c). 31