House Acts to Extend Salmon Product Development Tax Credit - Thomas' HB 344
Wednesday, April 7, 2010, Juneau, Alaska – The Alaska State House today unanimously passed House Bill 344, legislation extending the Salmon Product Development Tax Credit through Dec. 31, 2015. House Finance Committee Vice-Chair Bill Thomas, R-Haines, sponsored the bill.
“The tax credit was intended to spur Alaska salmon marketability and improve quality, which it has. Alaska salmon is considered the best in the world today and I’d like to believe this credit is one of the reasons why,” Thomas said. “Our salmon industry is beginning to recover from years of low values and competition from farmed fish. Extending the credit four years will allow the industry to continue the progress being made in developing and producing top-shelf salmon products.”
The bill also adds ice machines to the list of investments that qualify for the tax credit. Thomas says icing fish is a common practice in Southeast Alaska and is expanding to other fisheries like Bristol Bay and Western Alaska. He says icing preserves freshness and quality, which can bring better prices for fishermen since processors only want A-1 quality fish for value-added production.
The Salmon Product Development Tax Credit program allows applicants to claim a credit on their annual fisheries business tax for 50-percent of the purchase costs of eligible equipment, with a cap at 50-percent of the applicant’s tax liability. Eligible equipment includes those used for curing and brining, fillet lines, skinning machines, and vacuum packaging machines among othersHB 344 now heads to the Alaska State Senate for consideration.