Thursday, May 19, 2022

A tasty tax benefit for processors

The Alaska legislative session has concluded, and among the bills that passed is a measure to revive and expand a lucrative tax credit for seafood processors.

The state previously had a tax credit for investments in equipment used to produce value-added salmon and herring products, but that credit expired after 2020.

Senate Bill 33, which now awaits the governor's signature, would revive the tax credit and expand it to additional species including pollock, Pacific cod and sablefish.

A fiscal note estimated processors could benefit by up to $3.6 million annually.

The seafood industry broadly supported SB 33, which was sponsored by Sen. Gary Stevens, R-Kodiak. Industry players said the legislation could spur innovation, increase the value and utilization of each fish, and support jobs.


Anonymous said...

"My country 'tis of thee, sweet land of subsidy" — if you're connected and/or wealthy enough.

Anonymous said...

3.6 million split many ways is chump change. The ultimate appropriation of state and federal tax dollars by a single processor was the construction of an airport on Akun Island and a boat harbor on Akutan Island. The figure is over 100 million. And now, that processor may leave, essentially stranding those assets, decimating the Aleutian East Borrough and Akutan Village fish tax revenue, and most probably lead to the eventual demise of the village. Now that's what you call tax dollars at work.