Legislation to provide a product development tax credit for certain salmon and herring products has passed the Alaska House and moved to the Senate, where it was referred to the Senate Labor and Commerce Committee.
The legislation would allow a fisheries business to claim a product development tax credit of 50 percent of qualified investment in new property first placed into service in a shore-based plant or on a vessel in Alaska in the tax year. The current legislation applies to salmon products only.
The legislation now before the Senate would include salmon or herring products, including canned salmon products in can sizes other than 14.75 ounces or 7.5 ounces. Property investment would include equipment used to fillet, skin, portion mince, form, extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, package, freeze, scale, grind, separate meat from bone, or remove pin bones. It would also cover new parts necessary for, or costs associated with, converting a canned salmon line to produce can sizes other than 14.75 ounces or 7.5 ounces.
The legislation, sponsored by Rep. Alan Austerman, R-Kodiak, has a number of co-sponsors, including Rep. Bryce Edgmon, D- Dillingham. It is posted online at http://www.legis.state.ak.us/basis/get_bill_text.asp?hsid=HB0204C&session=28
HB 143, a bill increasing fees for non-resident one-week crewmember licenses from $30 to $60, which was introduced last March by Rep. Paul Seaton, R-Homer, is still in the House, as is Rep. Bryce Edgmon, D- Dillingham’s HB 177, which promotes commercial fishing loan programs within the Division of Economic Development.