AK
Alaska Senate Bill SB130

Alaska 2025-2026 Regular Session

Alaska Senate Bill SB130 Compare Versions

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2-SB0130B -1- CSSB 130(RES)
2+SB0130A -1- SB 130
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10-CS FOR SENATE BILL NO. 130(RES)
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11+ SENATE BILL NO. 130
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-FOURTH LEGISLATURE - FIRST SESSION
1516
16-BY THE SENATE RESOURCES COMMITTEE
17+BY THE SENATE RULES COMMITTEE BY R EQUEST OF THE JOINT LEGISLATI VE TASK FORCE
18+EVALUATING ALASKA'S SEAFOOD INDUSTRY
1719
18-Offered: 4/15/25
19-Referred: Finance
20+Introduced: 3/12/25
21+Referred: Resources, Finance
2022
21-Sponsor(s): SENATE RULES COMMITTEE BY REQUEST OF THE JOINT LEG ISLATIVE TASK FORCE
22-EVALUATING ALASKA'S SEAFOOD INDUSTRY
23+
2324 A BILL
2425
2526 FOR AN ACT ENTITLED
2627
27-"An Act relating to the fisheries product development tax credit; and providing for an 1
28-effective date." 2
29-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
30- * Section 1. AS 43.05.230(m) is amended to read: 4
31-(m) The number of recipients and the total amount of tax credits claimed for 5
32-each species [TYPE] of eligible fish under AS 43.75.037 is public information. In this
33-6
34-subsection, "eligible fish" has the meaning given in AS 43.75.037(k). 7
35- * Sec. 2. AS 43.75.037(i) is amended to read: 8
36-(i) The department shall develop and implement procedures by which a 9
37-taxpayer that is a fisheries business may submit the taxpayer's proposed investment to 10
38-the department and request a preliminary determination of whether the investment 11
39-qualifies for the fisheries product development tax credit under this section. A 12
40-preliminary determination by the department that the taxpayer's submission qualifies 13
41-for the credit is binding, unless the department determines that the taxpayer has made 14 34-LS0735\N
42-CSSB 130(RES) -2- SB0130B
28+"An Act relating to the fisheries product development tax credit; providing for an 1
29+effective date by amending the effective date of sec. 2, ch. 31, SLA 2022; and providing 2
30+for an effective date." 3
31+BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
32+ * Section 1. AS 43.75.037(b) is amended to read: 5
33+(b) The amount of the tax credit applied against taxes under this section may 6
34+not 7
35+(1) exceed 50 percent of the taxpayer's tax liability incurred under this 8
36+chapter for processing of eligible fish during the tax year; or 9
37+(2) be claimed for property first placed into service after December 31, 10
38+2029 [2026].
39+11
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-LS0735\A
43+SB 130 -2- SB0130A
4344 New Text Underlined [DELETED TEXT BRACKETED]
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45-a material misrepresentation in the taxpayer's submission. The department shall 1
46-make a preliminary determination as to whether a taxpayer's proposed 2
47-investment qualifies for a credit within 60 days after the department receives a 3
48-taxpayer's proposed investment submitted under this subsection. 4
49- * Sec. 3. AS 43.75.037(j) is amended to read: 5
50-(j) To claim a credit under this section, a taxpayer shall agree that the 6
51-department may make public the number of recipients and the total amount of tax 7
52-credits claimed for each species [TYPE] of eligible fish. Notwithstanding any contrary 8
53-provision in AS 40.25.100 or AS 43.05.230, the number of recipients and the total 9
54-amount of tax credits claimed for each species [TYPE] of eligible fish is public 10
55-information. 11
56- * Sec. 4. AS 43.75.037(k)(1) is amended to read: 12
57-(1) "eligible fish" means, except as otherwise provided in (c) of this 13
58-section, any species of fish or shellfish [SALMON, HERRING, POLLOCK, 14
59-SABLEFISH, OR PACIFIC COD]; 15
60- * Sec. 5. AS 43.75.037(k)(4) is amended to read: 16
61-(4) "qualified investment" means the investment cost to purchase or 17
62-convert depreciable tangible personal property with a useful life of three years or more 18
63-that will [TO] be used predominantly to increase the quality and value of eligible 19
64-fish or used predominantly to perform an ice-making, processing, packaging, or 20
65-product-finishing function that is a significant component in producing a value-added 21
66-eligible fish product, including canned salmon products in can sizes other than 14.75 22
67-ounces or 7.5 ounces; in this paragraph, "property" 23
68-(A) includes 24
69-(i) equipment used to fillet, skin, portion, mince, form, 25
70-extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, 26
71-package, freeze, scale, grind, separate meat from bone, or remove pin 27
72-bones; 28
73-(ii) new parts necessary for, or costs associated with, 29
74-converting a canned salmon line to produce can sizes other than 14.75 30
75-ounces or 7.5 ounces; 31 34-LS0735\N
76-SB0130B -3- CSSB 130(RES)
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-LS0735\A
77+SB0130A -3- SB 130
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79-(iii) conveyors used specifically in the act of producing 1
80-a value-added eligible fish product; 2
81-(iv) ice-making machines, freezers, and other 3
82-temperature reducing technologies; 4
83-(v) new canning equipment for herring products; and 5
84-(vi) equipment used to transform eligible fish byproduct 6
85-that is discarded as waste into saleable product; 7
86-(B) does not include 8
87-(i) vehicles, forklifts, conveyors not used specifically in 9
88-increasing the quality and value of eligible fish or the act of 10
89-producing a value-added eligible fish product, cranes, pumps, or other 11
90-equipment used to transport eligible fish or eligible fish products, 12
91-knives, gloves, tools, supplies and materials, equipment, other than ice-13
92-making machines, that is not processing, packaging, or product-14
93-finishing equipment, or other equipment, the use of which is incidental 15
94-to increasing the quality and value of eligible fish or the production, 16
95-packaging, or finishing of value-added eligible fish products; 17
96-(ii) the overhaul, retooling, or modification of new or 18
97-existing property, except for new parts necessary for, or costs 19
98-associated with, converting a canned salmon line to produce can sizes 20
99-other than 14.75 ounces or 7.5 ounces; or 21
100-(iii) property used predominantly to produce an eligible 22
101-fish product that is not taxed under this chapter; 23
102- * Sec. 6. AS 43.75.037(k) is amended by adding a new paragraph to read: 24
103-(8) "used predominantly" means used 51 percent or more of the time. 25
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 fish product that is not 19
99+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
104105 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new 26
105106 section to read: 27
106107 RETROACTIVITY. This Act is retroactive to January 1, 2025. 28
107- * Sec. 8. This Act takes effect immediately under AS 01.10.070(c). 29
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