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SB0130D -1- CSSB 130(FIN)
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CS FOR SENATE BILL NO. 130(FIN)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE SENATE FINANCE COMMITTEE
Offered: 3/25/26
Referred: Rules
Sponsor(s): SENATE RULES COMMITTEE BY REQUEST OF THE JOINT LEGISLATIVE TASK FORCE
EVALUATING ALASKA SEAFOOD INDUSTRY
A BILL
FOR AN ACT ENTITLED
"An Act relating to the fisheries product development tax credit; providing for an 1
effective date by amending the effective date of sec. 2, ch. 31, SLA 2022; and providing 2
for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 43.05.230(m) is amended to read: 5
(m) The number of recipients and the total amount of tax credits claimed for 6
each species [TYPE] of eligible fish under AS 43.75.037 is public information. In this 7
subsection, "eligible fish" has the meaning given in AS 43.75.037(k). 8
* Sec. 2. AS 43.75.037(b) is amended to read: 9
(b) The amount of the tax credit applied against taxes under this section may 10
not 11
(1) exceed 50 percent of the taxpayer's tax liability incurred under this 12
chapter for processing of eligible fish during the tax year; or 13
(2) be claimed for property first placed into service after December 31, 14
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CSSB 130(FIN) -2- SB0130D
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2036 [2026]. 1
* Sec. 3. AS 43.75.037(i) is amended to read: 2
(i) The department shall develop and implement procedures by which a 3
taxpayer that is a fisheries business may submit the taxpayer's proposed investment to 4
the department and request a preliminary determination of whether the investment 5
qualifies for the fisheries product development tax credit under this section. A 6
preliminary determination by the department that the taxpayer's submission qualifies 7
for the credit is binding, unless the department determines that the taxpayer has made 8
a material misrepresentation in the taxpayer's submission. The department shall 9
make a preliminary determination as to whether a taxpayer's proposed 10
investment qualifies for a credit within 60 days after the department receives a 11
taxpayer's proposed investment submitted under this subsection. 12
* Sec. 4. AS 43.75.037(j) is amended to read: 13
(j) To claim a credit under this section, a taxpayer shall agree that the 14
department may make public the number of recipients and the total amount of tax 15
credits claimed for each species [TYPE] of eligible fish. Notwithstanding any contrary 16
provision in AS 40.25.100 or AS 43.05.230, the number of recipients and the total 17
amount of tax credits claimed for each species [TYPE] of eligible fish is public 18
information. 19
* Sec. 5. AS 43.75.037(k)(1) is amended to read: 20
(1) "eligible fish" means, except as otherwise provided in (c) of this 21
section, any species of fish or shellfish [SALMON, HERRING, POLLOCK, 22
SABLEFISH, OR PACIFIC COD]; 23
* Sec. 6. AS 43.75.037(k)(4) is amended to read: 24
(4) "qualified investment" means the investment cost to purchase or 25
convert depreciable tangible personal property with a useful life of three years or more 26
to be used predominantly to perform an ice-making, processing, packaging, or 27
product-finishing function that is a significant component in producing a value-added 28
eligible fish product, including canned salmon products in can sizes other than 14.75 29
ounces or 7.5 ounces; in this paragraph, "property" 30
(A) includes 31
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SB0130D -3- CSSB 130(FIN)
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(i) equipment used to fillet, skin, portion, mince, form, 1
extrude, stuff, inject, mix, marinate, preserve, dry, smoke, brine, 2
package, freeze, scale, grind, separate meat from bone, or remove pin 3
bones; 4
(ii) new parts necessary for, or costs associated with, 5
converting a canned salmon line to produce can sizes other than 14.75 6
ounces or 7.5 ounces; 7
(iii) conveyors used specifically in the act of producing 8
a value-added eligible fish product; 9
(iv) ice-making machines and other temperature 10
reducing technologies; 11
(v) new canning equipment for herring products; and 12
(vi) equipment used to transform eligible fish byproduct 13
that is discarded as waste into saleable product; 14
(B) does not include 15
(i) vehicles, forklifts, conveyors not used specifically in 16
the act of producing a value-added eligible fish product, cranes, pumps, 17
or other equipment used to transport eligible fish or eligible fish 18
products, knives, gloves, tools, supplies and materials, equipment, other 19
than ice-making machines, that is not processing, packaging, or 20
product-finishing equipment, or other equipment, the use of which is 21
incidental to the production, packaging, or finishing of value-added 22
eligible fish products; 23
(ii) the overhaul, retooling, or modification of new or 24
existing property, except for new parts necessary for, or costs 25
associated with, converting a canned salmon line to produce can sizes 26
other than 14.75 ounces or 7.5 ounces; or 27
(iii) property used predominantly to produce an eligible 28
fish product that is not taxed under this chapter; 29
* Sec. 7. AS 43.75.037(k) is amended by adding a new paragraph to read: 30
(8) "used predominantly" means used 51 percent or more of the time. 31
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* Sec. 8. Section 6, ch. 31, SLA 2022, is amended to read: 1
Sec. 6. AS 43.05.230(m); AS 43.75.037, and 43.75.130(h) are repealed 2
January 1, 2037 [2027]. 3
* Sec. 9. The uncodified law of the State of Alaska is amended by adding a new 4
section to read: 5
RETROACTIVITY. This Act is retroactive to January 1, 2026. 6
* Sec. 10. Section 8, ch. 31, SLA 2022, is amended to read: 7
Sec. 8. Section 2 of this Act takes effect January 1, 2037 [2027]. 8
* Sec. 11. This Act takes effect immediately under AS 01.10.070(c). 9