Section 15 AAC 75.060 - Qualified investments eligible for the fisheries product development tax credit(a) To be eligible for the fisheries product development tax credit under AS 43.75.037, depreciable tangible personal property claimed as the basis of a qualified investment must (1) be first used for its intended purposes in the state after July 7, 2022 and before January 1, 2027;(2) have a useful life of three years or more;(3) belong to one of the following categories:(A) new processing equipment, conveyors used specifically in the act of producing a value-added eligible fish product, ice-making machines, canning equipment for herring products, and equipment used to transform eligible fish byproduct into saleable product;(B) new canning equipment for salmon products; or(C) new parts necessary for converting a canned salmon line to produce can sizes other than 14.75 ounces or 7.5 ounces, or costs associated with that conversion; and(4) be used primarily either to(A) process salmon or herring, if installed on a vessel; or(B) process salmon, herring, pollock, sablefish, or Pacific cod, if installed in a shore-based plant.(b) For qualified investment property on which a tax credit is claimed under AS 43.75.037 to be used to predominantly perform a processing, packaging, or product-finishing function the property must have direct contact with the eligible fish while actively performing the relevant processing, packaging, or product-finishing function. Property that fills a passive, secondary, or incidental role in the relevant processing, packaging, or product-finishing function does not meet this requirement.(c) A fisheries business in the state that operates one or more vessels, shore-based plants, or a combination of both may only claim a tax credit under AS 43.75.037 for new property that is the same type of property purchased in the previous 10 years on which a tax credit has been claimed under AS 43.75.037 if neither the new property or previously purchased property has been removed from the state. To claim a tax credit under these circumstances a fisheries business shall submit to the department (1) an application in accordance with 15 AAC 75.070 for a preliminary determination of whether the proposed new property qualifies for the credit;(2) a disclosure that the fisheries business has already received a tax credit for the same type of property;(3) a certification under penalty of perjury that neither the property purchased in the previous 10 years on which a tax credit has been claimed under AS 43.75.037 nor the proposed new property has been removed from the state; and(4) any additional documentation required by the department.(d) If a fisheries business claimed and received a tax credit under AS 43.75.037 on property purchased in the previous 10 years, the fisheries business shall notify the department not later than 30 days after(1) the fisheries business has disposed of the property;(2) the property ceases to be qualified investment property,(3) the property is removed from service; or(4) the property is removed from the state.(e) If a fisheries business claims a tax credit under AS 43.75.037 for new property that is the same type of property purchased in the previous 10 years on which a tax credit has been claimed under AS 43.75.037, the fisheries business shall provide documentation to the department establishing that the property on which the tax credit was previously claimed has not been removed from the state. If the fisheries business fails to provide the required documentation, the department will deny any requests for credit under AS 43.75.037 for the same type of property purchased in the previous 10 years on which a tax credit has been claimed under AS 43.75.037.(f) In AS 43.75.037 and this section, (1) "same type of property" means property or equipment that performs the same or similar ice-making, processing, packaging, or product-finishing function as property purchased in the previous 10 years on which a tax credit has been claimed under AS 43.75.037;(2) "shore-based plant" means "shore-based fisheries business" within the meaning given in AS 43.75.290 and 15 AAC 75.290; and(3) "vessel" means "floating fisheries business" within the meaning given in AS 43.75.290.Eff. 12/16/86, Register 101; am 3/3/2023, Register 245, April 2023Authority:AS 43.05.080
AS 43.75.037
AS 43.75.290