Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fisheries Tax Credit topic
No spam. Unsubscribe anytime.
Committee hears support from processors for expansion of fisheries product development tax credit
Summary
House Bill 129 would expand Alaska’s fisheries product development tax credit to more species, speed Department of Revenue determinations and extend the program sunset; processors told the committee the change would help value‑added operations amid weak markets.
Matt Greening, staff to the House Fisheries Committee, presented House Bill 129 on March 25 as legislation requested by a legislative task force to expand the fisheries product development tax credit. Greening told the committee the bill would broaden eligible species, speed determinations of eligibility by the Department of Revenue and extend the credit’s sunset by three years.
Why it matters: Processors and shore-side businesses said the credit helps firms invest in equipment and technology to produce higher‑value products when market conditions are poor, supporting processors’ revenues and, indirectly, fishermen’s prices.
What the bill would do
According to Greening’s presentation, the existing credit allows a processor to deduct up to 50% of its fisheries business tax liability for the cost of purchasing new equipment used predominantly in production of value‑added products from selected species. HB 129 would expand eligible species, expedite Department of Revenue determinations of credit eligibility, and extend the program’s sunset date by three years to continue the incentive.
Industry testimony
Sinclair Wilt, representing Westwood Seafoods, said his company operates three processing facilities in Unalaska (Dutch Harbor) and supports expansion of the credit to additional species, calling the proposal “helpful” given historically poor market conditions. Wilt aligned his testimony with written comments submitted by the Pacific Seafood Processors Association.
Committee process and next steps
Deputy Director Brandon Spanos and lead auditor Chris Becker of the Department of Revenue were on the line to answer technical questions. Chair Stutes set an amendment deadline of Thursday, March 27 at 5:00 p.m. to her office and said the bill would be set aside while the committee considers amendments. No formal vote was taken at the hearing.
Quote
"This legislation expands the fisheries product development tax credit to continue to incentivize value added products, as well as new technologies and processes that add to the quality and value of Alaska's fish," Matt Greening said in his presentation.
Next steps
The committee will accept amendments through March 27 at 5:00 p.m. and take additional staff and stakeholder input before scheduling further action.
