25th Legislature(2007-2008)

Bill Text 25th Legislature

00                       CS FOR HOUSE BILL NO. 321(FSH)                                                                    
01 "An Act relating to the salmon product development tax credit; providing for an                                         
02 effective date by amending an effective date in sec. 7, ch. 57, SLA 2003, as amended by                                 
03 sec. 4, ch. 3, SLA 2006; and providing for an effective date."                                                          
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 43.75.035(b) is amended to read:                                                                   
06            (b)  The amount of the tax credit applied against taxes under this section may                               
07       not                                                                                                               
08                 (1)  exceed 50 percent of the taxpayer's tax liability incurred under this                              
09       chapter for processing of salmon during the tax year; or                                                          
10                 (2)  be claimed for property first placed into service after December 31,                               
11       2011 [2008].                                                                                                  
12    * Sec. 2. AS 43.75.035(i)(3) is amended to read:                                                                   
13                 (3)  "qualified investment" means the investment cost in depreciable                                    
14       tangible personal property with a useful life of three years or more to be used                                   
01       predominantly to perform a processing, packaging, or product finishing function that                              
02       is a significant component in producing value-added salmon products beyond gutting                                
03       of the salmon; in this paragraph, "property"                                                                      
04                      (A)  includes                                                                                      
05                           (i)  filleting, skinning, portioning, mincing, forming,                                       
06                 extruding, stuffing, injecting, mixing, marinating, preserving, drying,                                 
07                 smoking, brining, packaging, blast freezing, or pin bone removal                                        
08                 equipment; [AND]                                                                                        
09                           (ii)  new parts to convert an existing can seamer to pop-                                     
10                 top can production; and                                                                             
11                           (iii)  conveyors used specifically in the act of                                          
12                 producing a value-added salmon product;                                                             
13                      (B)  does not include                                                                              
14                           (i)  vehicles, forklifts, conveyors not used specifically                                 
15                 in the act of producing a value-added salmon product, cranes,                                       
16                 pumps, or other equipment used to transport salmon or salmon                                            
17                 products, knives, gloves, tools, supplies and materials, equipment that                                 
18                 is not processing, packaging, or product finishing equipment, or other                                  
19                 equipment the use of which is incidental to the production, packaging,                                  
20                 or finishing of value-added salmon products; or                                                         
21                           (ii)  the overhaul, retooling, or modification of new or                                      
22                 existing property, except for new parts to convert an existing can                                      
23                 seamer to pop-top can production;                                                                       
24    * Sec. 3. AS 43.75.035 is amended by adding a new subsection to read:                                              
25            (j)  The department shall develop and implement procedures by which a                                        
26       taxpayer that is a fisheries business may submit the taxpayer's proposed investment to                            
27       the department and request a preliminary determination of whether the investment                                  
28       qualifies for the salmon product development tax credit under this section. A                                     
29       preliminary determination by the department that the taxpayer's submission qualifies                              
30       for the credit is binding, unless the department determines that the taxpayer has made                            
31       a material misrepresentation in the taxpayer's submission.                                                        
01    * Sec. 4. Section 7, ch. 57, SLA 2003, as amended by sec. 4, ch. 3, SLA 2006, is amended                           
02 to read:                                                                                                                
03            Sec. 7. Section 3 of this Act takes effect on the earlier of the following:                                  
04                 (1)  January 1, 2015 [2012]; or                                                                     
05                 (2)  the date of the attorney general's notification to the lieutenant                                  
06       governor and to the revisor of statutes that                                                                      
07                      (A)  a court has entered final judgment that AS 43.75.035 or                                     
08            43.75.036, added by sec. 1, ch. 57, SLA 2003 [OF THIS ACT], violates the                                 
09            commerce clause contained in art. I, sec. 8, United States Constitution; and                                 
10                      (B)  the time for an appeal of that judgment has expired, or, if                                   
11            an appeal was taken, a final order on the appeal has been entered that                                       
12            AS 43.75.035 or 43.75.036, added by sec. 1, ch. 57, SLA 2003 [OF THIS                                    
13            ACT], violates the commerce clause contained in the United States                                            
14            Constitution.                                                                                                
15    * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).