Alaska 32nd Legislature (2021-2022) Status: Enacted Bipartisan · 3 D · 2 R cosponsors

SB 33 — An Act relating to a fisheries product development tax credit; and providing for an effective date.

Last action — (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 25, 2021. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 98% · high confidence

  • Enacted

    Current position in the legislative process.

  • 8 sponsors

    1 primary, 7 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (3 D · 2 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

198 added · 145 removed

Plain-language change summary

The latest version of Bill SB 33 amends the language around a fisheries product development tax credit by changing the specifics of what expenses qualify for the credit. Notably, it now allows for up to 50% of the tax credit to be claimed for the processing of certain fish types, including salmon, herring, pollock, and cod, with new limits set on the timing of the property usage for these tax credits. These changes are significant as they could encourage greater investment and support for the fishing industry, contributing to economic growth in Alaska's coastal communities.

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32-LS0308\A SENATE BILL NO.
LAWS OF ALASKA Source Chapter No.
33 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-SECOND LEGISLATURE - SECOND SESSION BY SENATORS STEVENS, Kiehl, Hoffman, Stedman, Bishop, Olson, Revak, Micciche Introduced:
HCS CSSB 33(FIN) _______ AN ACT Relating to a fisheries product development tax credit;
1/25/21 Referred:
and providing for an effective date.
Resources, Finance A BILL FOR AN ACT ENTITLED "An Act relating to a seafood product development tax credit;
_______________ BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
providing for an effective date by repealing secs.
THE ACT FOLLOWS ON PAGE 1 Enrolled SB 33 AN ACT Relating to a fisheries product development tax credit;
32 and 35, ch.
and providing for an effective date.
61, SLA 2014;
_______________ * Section 1.
and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
AS 40.25.100(a) is amended to read:
* Section 1.
(a) Information in the possession of the Department of Revenue that discloses the particulars of the business or affairs of a taxpayeer person, including information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement under AS 38.05.020(b)(12), is not a matter of public record, except as provided in AS 43.05.230(i) - (m) [AS 43.05.230(i) - (l)] or for purposes of investigation and law enforcement.
AS 43.75.035(b) is amended to read:
The information shall be kept confidential except when its production is required in an official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or court proceeding.
(b) The amount of the tax credit applied against taxes under this section may not (1) exceed 50 percent of the taxpayer's tax liability incurred under this chapter for processing of salmon, [AND] herring, pollock, and cod during the tax year;
These restrictions do not prohibit the publication of statistics presented in a manner that prevents the identification of particular reports and items, prohibit the publication of tax lists showing the names of taxpayers who are -1- Enrolled SB 33 delinquent and relevant information that may assist in the collection of delinquent taxes, or prohibit the publication of records, proceedings, and decisions under AS 43.05.405 - 43.05.499.
or (2) be claimed for property first placed into service after December 31, 2025 [2020].
AS 43.75.035(c) is amended to read:
AS 40.25.100(a), as amended by sec.
(c) If the property for which a tax credit is claimed is installed on a vessel, the amount of qualified investment under (a) of this section is determined by multiplying SB0033A -1- SB 33 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0308\A the investment cost of the qualified investment property by a fraction, the numerator of which is the weight of raw salmon, [OR] raw herring, raw pollock, or raw cod processed on the vessel by the taxpayer in the state in the tax year in which the property is first placed into service, and the denominator of which is the weight of raw salmon, [OR] raw herring, raw pollock, or raw cod processed on the vessel by the taxpayer in and outside of the state in the tax year in which the property is first placed into service.
1 of this Act, is amended to read:
(a) Information in the possession of the Department of Revenue that discloses the particulars of the business or affairs of a taxpayer or other person, including information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement under AS 38.05.020(b)(12), is not a matter of public record, except as provided in AS 43.05.230(i) - (l) [AS 43.05.230(i) - (m)] or for purposes of investigation and law enforcement.
The information shall be kept confidential except when its production is required in an official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or court proceeding.
These restrictions do not prohibit the publication of statistics presented in a manner that prevents the identification of particular reports and items, prohibit the publication of tax lists showing the names of taxpayers who are delinquent and relevant information that may assist in the collection of delinquent taxes, or prohibit the publication of records, proceedings, and decisions under AS 43.05.405 - 43.05.499.
AS 43.75.035(d) is amended to read:
AS 43.05.230 is amended by adding a new subsection to read:
(d) An unused credit under this section may be carried forward and applied against the tax liability incurred on salmon, [AND] herring, pollock, and cod in the following three tax years.
(m) The number of recipients and the total amount of tax credits claimed for each type of eligible fish under AS 43.75.037 is public information.
In this subsection, "eligible fish" has the meaning given in AS 43.75.037(k).
AS 43.75.035(e) is amended to read:
AS 43.75 is amended by adding a new section to read:
(e) Qualified investment costs upon which a tax credit is claimed under this section may not be considered for another tax credit in this title.
Sec.
[A TAX CREDIT APPLIED UNDER THIS SECTION MAY NOT EXCEED 50 PERCENT OF THE TAXPAYER'S TAX LIABILITY INCURRED FOR THE PROCESSING OF SALMON DURING THE TAX YEAR.] * Sec.
43.75.037.
5.
Fisheries product development tax credit.
AS 43.75.035(g) is amended to read:
(a) Except as provided in (f) of this section, a taxpayer that is a fisheries business may claim a fisheries 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 the state in the tax year.
(g) If, during a tax year, property for which a credit was claimed under this section is disposed of by the taxpayer, ceases to be qualified investment property, or is removed from service in the state, the tax due under this chapter is increased by the recapture percentage of the aggregate decrease in the credit allowed under this section for all prior tax years that would have resulted solely from reducing to zero the credit allowed for the qualified investment property under this section.
(b) The amount of the tax credit applied against taxes under this section may not (1) exceed 50 percent of the taxpayer's tax liability incurred under this chapter for processing of eligible fish during the tax year;
or Enrolled SB 33 -2- (2) be claimed for property first placed into service after December 31, 2026.
(c) If the property for which a tax credit is claimed is installed on a vessel, the amount of qualified investment under (a) of this section is determined by multiplying the investment cost of the qualified investment property by a fraction, the numerator of which is the weight of raw eligible fish processed on the vessel by the taxpayer in the state in the tax year in which the property is first placeinto service, and the denominator of which is the weight of raw eligible fish processed on the vessel by the taxpayer in and outside of the state in the tax year in which the property is first placed into service.
In this subsection, "eligible fish" does not include pollock, sablefish, or Pacific cod.
(d) An unused credit under this section may be carried forward and applied against the tax liability incurred on eligible fish in the following three tax years.
(e) Qualified investment costs on which a tax credit is claimed under this section may not be considered for another tax credit in this title.
(f) A taxpayer may not claim the tax credit allowed under this section (1) if the taxpayer is in arrears in the payment of assessmenstunder AS 16.51.120, contributions under AS 23.20, or taxes or assessments collected or owed under this title;
for purposes of this paragraph, a taxpayer is not in arrears if the liability for the assessment, contribution, or tax is under administrative or judicial appeal;
(2) for property that is the same type of property as property (A) on which a tax credit has been claimed under this section;
(B) that has been removed from the state;
and (C) that was purchased in the previous 10 years;
or (3) for property installed on a vessel used primarily to process pollock, sablefish, or Pacific cod.
(g) If, during a tax year, property for which a credit was claimed under this section is disposed of by the taxpayer, ceases to be qualified investment property, or is removed from service in the state, the tax due under this chapter is increased by the recapture percentage of the aggregate decrease in the credit allowed under this section -3- Enrolled SB 33 for all prior tax years that would have resulted solely from reducing to zero the credit allowed for the qualified investment property under this section.
SB 33 -2- SB0033A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0308\A (2) the recapture percentage during the second year following the year in which the property is first placed into service is 75 percent;
(2) the recapture percentage during the second year following the year in which the property is first placed into service is 75 percent;
(4) the recapture percentage during the fourth or subsequent year following the year in which the property is first placed into service is zero percent;
(4) the recapture percentage during the fourth or later year following the year in which the property is first placed into service is zero percent;
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(5) qualified investment property used on a vessel is considered to have been removed from the state on the first day of a tax year in which the proportion of raw salmon, [OR] raw herring, raw pollock, or raw cod processed in the state on the vessel is less than 50 percent of total weight of raw salmon, [OR] raw herring, raw pollock, or raw cod processed on the vessel in and outside of the state.
(5) qualified investment property used on a vessel is considered to have been removed from the state on the first day of a tax year in which the proportion of raw eligible fish processed in the state on the vessel is less than 50 percent of total weight of raw eligible fish processed on the vessel in and outside of the state.
* Sec.
(h) The amount of a tax credit recaptured under (g)(1) - (3) of this section may not be included in the determination of the amount of that tax credit that is allowable under this section.
6.
(i) The department shall devel op and implement procedures by which a taxpayer that is a fisheries business may submit the taxpayer's proposed investment to the department and request a preliminary determination of whether the investment qualifies for the fisheries product development tax credit under this section.
AS 43.75.035(j)(3) is amended to read:
A preliminary determination by the department that the taxpayer's submission qualifies for the credit is binding, unless the department determines that the taxpayer has made a material misrepresentation in the taxpayer's submission.
(3) "qualified investment" means the investment cost to purchase or convert depreciable tangible personal property with a useful life of three years or more to be used predominantly to perform an ice making, processing, packaging, or product finishing function that is a significant component in producing value-added salmon, [OR] herring, pollock, or cod products, including canned salmon products in can sizes other than 14.75 ounces or 7.5 ounces;
(j) To claim a credit under this section, a taxpayer shall agree that the department may make public the number of recipients and the total amount of tax Enrolled SB 33 -4- credits claimed for each type of eligible fish.
Notwithstanding any contrary provision in AS 40.25.100 or AS 43.05.230, the number of recipients and the total amount of tax credits claimed for each type of eligible fish is public information.
(k) In this section, (1) "eligible fish" means, except as otherwise provided in (c) of this section, salmon, herring, pollock, sablefish, or Pacific cod;
(2) "first placed into service" means the moment when property is first used for its intended purpose;
(3) "new property" means property whose original use begins with the taxpayer and does not include property first used by another person;
(4) "qualified investment" means the investment cost to purchase or convert depreciable tangible personal property with a useful life of three years or more to be used predominantly to perform an ice-making, processing, packaging, or product-finishing function that is a significant component in producing a value-added eligible fish product, including canned salmon products in can sizes other than 14.75 ounces or 7.5 ounces;
(iii) conveyors used specifically in the act of producing a value-added salmon, [OR] herring, pollock, or cod product;
(iii) conveyors used specifically in the act of producing a value-added eligible fish product;
(iv) ice making machines;
(iv) ice-making machines;
and (vi) equipment used to transform salmon, [OR] herring, SB0033A -3- SB 33 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0308\A pollock, or cod byproduct that is discarded as waste into saleable product;
and (vi) equipment used to transform eligible fish byproduct that is discarded as waste into saleable product;
(B) does not include (i) vehicles, forklifts, conveyors not used specifically in the act of producing a value-added salmon, [OR] herring, pollock, or cod product, cranes, pumps, or other equipment used to transport salmon, [OR] herring, pollock, or cod, or salmon, [OR] herring, pollock, or cod products, knives, gloves, tools, supplies and materials, equipment, other than ice making machines, that is not processing, packaging, or product finishing equipment, or other equipment, the use of which is incidental to the production, packaging, or finishing of value-added salmon, [OR] herring, pollock, or cod products;
(B) does not include -5- Enrolled SB 33 (i) vehicles, forklifts, conveyors not used specifically in the act of producing a value-added eligible fish product, cranes, pumps, or other equipment used to transport eligible fish or eligible fish products, knives, gloves, tools, supplies and materials, equipment, other than ice-making machines, that is not processing, packaging, or product-finishing equipment, or other equipment, the use of which is incidental to the production, packaging, or finishing of value-added eligible fish products;
or (iii) property used predominantly to produce a salmon, [OR] herring, pollock, or cod product that is not taxed under this chapter;
or (iii) property used predominantly to produce an eligible fish product that is not taxed under this chapter;
(5) "tax liability" means the liability for all taxes under this chapter before all credits allowed by this chapter;
(6) "useful life" means the useful life of the property that is or would be applicable for purposes of depreciation;
(7) "value-added eligible fish product" means the product of an eligible fish that is processed beyond heading, gutting, or separation in a manner that enhances the value or quality of the eligible fish product, such as shelf-stable, retort pouched, smoked, pickled, or filleted eligible fish, ikura, leather, jerky, or a saleable product made from waste byproduct of eligible fish;
"value-added eligible fish product" does not include an eligible fish or eligible fish product that (A) has been subjected to only one or more of heading, gutting, freezing, or packaging;
(B) is salmon skeins or other unprocessed salmon or unprocessed eligible fish products, whether fresh or frozen;
or (C) is produced outside of the state.
7.
5.
AS 43.75.035(j)(6) is amended to read:
AS 43.75.130 is amended by adding a new subsection to read:
(6) "value-added salmon, [OR] herring, pollock, or cod product" means the product of a salmon, [OR] herring, pollock, or cod that is processed beyond heading, gutting, or separation in a manner that enhances the value or quality of the salmon, [OR] herring, pollock, or cod product, such as shelf-stable, retort pouched, smoked, pickled, or filleted salmon, herring, pollock, or cod, ikura, leather, jerky, or a saleable product made from waste byproduct of salmon, [OR] herring, pollock, or cod;
(h) For purposes of this section, tax revenue collected under AS 43.75.015 Enrolled SB 33 -6- from a person entitled to a credit under AS 43.75.037 is calculated as if the person's tax were collected without applying the credit.
"value-added salmon, [OR] herring, pollock, or cod product" does not include a salmon, [OR] herring, pollock, or cod or salmon, [OR] herring, pollock, or cod product that (A) has been subjected to only one or more of heading, gutting, freezing, or packaging;
Tax revenue collected does not include the amount of a tax credit recaptured under AS 43.75.037(g).
SB 33 -4- SB0033A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0308\A (B) is salmon skeins or other unprocessed salmon, [OR] unprocessed herring, unprocessed pollock, or unprocessed cod product, [PRODUCTS] whether fresh or frozen;
or (C) is produced outside [OUT] of the state.
8.
6.
AS 43.75.035 and 43.75.130(f) are repealed January 1, 2026.
AS 43.05.230(m);
AS 43.75.037, and 43.75.130(h) are repealed January 1, 2027.
9.
7.
Section 3, ch.
57, SLA 2003, and secs.
22, 27, and 29, ch.
61, SLA 2014, are repealed.
* Sec.
10.
AS 43.75.035(b) - (e), (g), and (j), as amended by secs.
Notwithstanding AS 43.75.037(a), added by sec.
1 - 7 of this Act, apply to pollock and cod processed on or after January 1, 2022.
4 of this Act, a taxpayer may only claim a tax credit under AS 43.75.037, added by sec.
4 of this Act, for new property first placed into service on or after the effective date of sec.
4 of this Act.
11.
8.
Section 7, ch.
Section 2 of this Act takes effect January 1, 2027.
57, SLA 2003, sec.
4, ch.
3, SLA 2006, sec.
4, ch.
8, SLA 2008, sec.
3, ch.
102, SLA 2010, secs.
32 and 35, ch.
61, SLA 2014, and sec.
16, ch.
69, SLA 2014, are repealed.
12.
9.
This Act takes effect January 1, 2022.
Except as provided in sec.
SB0033A -5- SB 33 New Text Underlined [DELETED TEXT BRACKETED]
8 of this Act, this Act takes effect immediately under AS 01.10.070(c).
-7- Enrolled SB 33
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Action History

  1. (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

  2. (S) Signed into law 7/7 CHAPTER 31 SLA 22

  3. (S) 9:04 A.M. 6/22/22 Transmitted to Governor

  4. (S) MANIFEST ERROR(S)

  5. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  6. (S) CONCUR AM OF (H) Y18 N1 E1

  7. (S) CONCUR MESSAGE READ AND TAKEN UP

  8. (H) VERSION: HCS CSSB 33(FIN)

  9. (H) TRANSMITTED TO (S) AS AMENDED

  10. (H) CROSS SPONSOR(S): JOSEPHSON, WOOL, TUCK

  11. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

  12. (H) PASSED Y36 N2 E2

  13. (H) READ THE THIRD TIME HCS CSSB 33(FIN)

  14. (H) CROSS SPONSOR(S): TARR, MCCARTY

  15. (H) ADVANCED TO THIRD READING 4/29 CALENDAR

  16. (H) FIN HCS ADOPTED UC

  17. (H) READ THE SECOND TIME

  18. (H) RULES TO CALENDAR 4/27/2022

  19. (H) FN2: (REV)

  20. (H) NR: JOSEPHSON

  21. (H) DP: ORTIZ, EDGMON, LEBON, THOMPSON, WOOL, RASMUSSEN, MERRICK

  22. (H) FIN RPT HCS(FIN) 7DP 1NR

  23. (H) CROSS SPONSOR(S): MERRICK

  24. (H) Minutes (HFIN)

  25. (H) Moved HCS CSSB 33(FIN) Out of Committee

  26. (H) FINANCE at 01:30 PM ADAMS 519

  27. (H) -- MEETING CANCELED --

  28. (H) FINANCE at 09:00 AM ADAMS 519

  29. (H) Minutes (HFIN)

  30. (H) <Bill Hearing Canceled>

  31. (H) FINANCE at 09:00 AM ADAMS 519

  32. (H) <Bill Hearing Canceled> -- Recessed to a Call of the Chair --

  33. (H) FINANCE at 09:00 AM ADAMS 519

  34. (H) CROSS SPONSOR(S): FOSTER

  35. (H) Minutes (HFIN)

  36. (H) Heard & Held

  37. (H) FINANCE at 01:30 PM ADAMS 519

  38. (H) FIN

  39. (H) READ THE FIRST TIME - REFERRALS

  40. (S) VERSION: CSSB 33(FIN)

  41. (S) TRANSMITTED TO (H)

  42. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  43. (S) PASSED Y20 N-

  44. (S) READ THE THIRD TIME CSSB 33(FIN)

  45. (S) Minutes (SFIN)

  46. (S) Moved CSSB 33(FIN) Out of Committee

  47. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  48. (S) COSPONSOR(S): HOFFMAN, STEDMAN, BISHOP, OLSON, REVAK, MICCICHE

  49. (S) ADVANCED TO THIRD READING NEXT CALENDAR

  50. (S) FIN CS ADOPTED UC

  51. (S) READ THE SECOND TIME

  52. (S) RULES TO CALENDAR 2/9/2022

  53. (S) FN2: (REV)

  54. (S) NR: WILSON, WIELECHOWSKI, OLSON

  55. (S) DP: STEDMAN, BISHOP, HOFFMAN, VON IMHOF

  56. (S) FIN RPT CS 4DP 3NR NEW TITLE

  57. (S) Minutes (SFIN)

  58. (S) Heard & Held

  59. (S) FINANCE at 01:00 PM SENATE FINANCE 532

  60. (S) Minutes (SFIN)

  61. (S) Heard & Held

  62. (S) FINANCE at 01:00 PM SENATE FINANCE 532

  63. (S) FN1: (REV)

  64. (S) DP: STEVENS, VON IMHOF, KIEHL

  65. (S) NR: REVAK, KAWASAKI, MICCICHE, BISHOP

  66. (S) RES RPT CS 3DP 4NR SAME TITLE

  67. (S) Minutes (SRES)

  68. (S) Moved CSSB 33(RES) Out of Committee

  69. (S) RESOURCES at 03:30 PM BUTROVICH 205

  70. (S) Minutes (SRES)

  71. (S) Heard & Held -- Testimony <Invitation Only> --

  72. (S) RESOURCES at 03:30 PM BUTROVICH 205

  73. (S) COSPONSOR(S): KIEHL

  74. (S) RES, FIN

  75. (S) READ THE FIRST TIME - REFERRALS

  76. (S) Prefile released 1/8/21

Sponsors

Sponsorship breakdown

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1 sponsors · 7 co-sponsors · 57 not signed on

Sponsors (1)

Co-sponsors (7)

Not signed on (57)

57 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 33?
SB 33 is sponsored by Gary Stevens (R), Jesse Kiehl (D), Lyman Hoffman (D), Bert Stedman (R), Bishop, Donald Olson (D), Revak, and Micciche.
What is the current status of SB 33?
This bill has been enacted into law. Introduced January 25, 2021. Enacted.
Where can I track SB 33?
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