Legislation enacted in early July extends the expiration date of an Alaska tax credit program for seafood processors who market value-added products.
Legislation sponsored by State Sen. Gary Stevens (R-Kodiak) extends the tax credit for value-added salmon and herring products through Jan. 1, 2027, and also allows tax credits for products from other Alaskan fish species. The program has been recognized as one of the main reasons for the increased commercial value of Alaskan seafood products since its inception as a tax credit for the development of Alaskan salmon products in 2003.
Data compiled by the Alaska Seafood Marketing Institute and the Pacific Seafood Processors Association conclude that $114.4 million in new revenue was generated by the previous tax credit program.
Stevens said the new law expands the ability of Alaskan seafood processors to recover costs for installing new equipment and making significant investments to get more value out of every fish. “It also encourages entirely new products made from what would otherwise be fish waste and extends tax credit opportunities to Pollock and cod products,” Stevens said.
SB-33, passed by the Legislative Assembly on May 2n/a and promulgated on July 7, addresses the concern of a potential loophole whereby a value added tax credit could be applied to processing activity in the pollock, Pacific cod and sablefish fisheries on board vessels for products caught outside state waters and processed, but not landed, inside state waters.
Amendment clarifies that tax credit applicability and investment incentives are established only for Alaskan land-based value-added processing of pollock, Pacific cod and sablefish .
It holds harmless the existing value-added processing on and at sea of salmon and herring, because these programs have been in the statutes since 2004 and have proven their worth.
Stevens also sponsored the original legislation creating the Alaska Salmon Product Development Tax Credit. Herring was added to the program in a later reauthorization of the law.