The State Senate passed Senate Bill 33, which extends the sunset date for tax credits applied to seafood processors bringing salmon and herring products to market and broadens the tax credit to include processors of other seafood products in Alaska.
Senator Gary Stevens, SB 33’s sponsor, told the Senate:
“This Senate Bill 33 is truly a direct economic development policy. It’s been used by the state for some time. It’s for value added investment activity. It has been used in the past for salmon and herring industries. The program was first launched in 2003. The sunset for that bill on salmon and herring has been extended a few times over the years, unfortunately, due to COVID, we ran out of time to extend it again at the end of 2020 when it expired and was repealed. The bill in front of you restores that program and also broadens the scope of this tax credit to include investment opportunities and incentives not only for salmon and for herring, but also for pollock, pacific cod and sablefish products as well. Essentially, it translates into a partial reimbursement for investment in machinery, hardware, and infrastructure in processing these fish resources. SB 33 is intended not only to restore and maintain but also to improve the business and marketing climate for value added seafood processing and the economic engine that it drives here in Alaska.”
SB 33 extends the deadline for Alaska seafood processors to receive capital cost recovery for installing new equipment and significant investments until December 31, 2026. The legislation also encourages innovations in seafood processing and incentivizes creating marketable products from what would otherwise be fish waste.
Senate Bill 33 passed 20-0 and is now on its way to the House of Representatives for consideration.
Transcribed audio courtesy of KTOO 360TV.