Legislation signed into law in early July extends the sunset date for an Alaska tax credit program for seafood processors that bring value-added product to market.
The legislation sponsored by state Senator Gary Stevens (R-Kodiak) continues the tax credit for salmon and herring value-added products until Jan. 1, 2027, and also allows tax credits for products from other Alaska fish species. The program has been credited as a major reason for the boost in the commercial value of Alaska seafood since its inception as the Alaska Salmon Product Development Tax Credit in 2003.
Data compiled by the Alaska Seafood Marketing Institute and the Pacific Seafood Processors Association concludes that $114.4 million in new revenue has been generated from the previous tax credit program.
Stevens said that the new law extends the ability for Alaska seafood processors to receive cost recovery for installing new equipment and for making significant investments to get more value out of each fish. “It also encourages entirely new products made from what would otherwise be fish waste and expands tax credit opportunities to Pollock and cod products,” Stevens said.
SB-33, passed the Legislature on May 2nd and signed into law on July 7, addresses the concern for a potential loophole that a value-added tax credit could be applied to processing activity in the fisheries of Pollock, Pacific cod and sablefish aboard vessels for product caught outside of state waters and processed, but not landed, inside state waters.
The amendment makes clear that tax credit applicability and investment incentives are being established only for Alaska shore-based value-added processing of Pollock, Pacific cod and sablefish.
It holds harmless existing on-and-offshore value-added processing of salmon and herring as these programs have been in stat statues since 2004 and proven successful.
Stevens also sponsored the original legislation creating the Alaska Salmon Product Development Tax Credit. Herring was added to the program during a later reauthorization of the law.