State of Alaska
Fiscal Note
Bill Version: SB 130
2020 Legislative Session
Fiscal Note Number: 1
(S) Publish Date: 3/21/2020
Identifier: SB130-DOR-TAX-02-28-2020 Department: Department of Revenue
Title: SEAFOOD PRODUCT DEVELOPMENT TAX Appropriation: Taxation and Treasury
CREDIT Allocation: Tax Division
Sponsor: STEVENS OMB Component Number: 2476
Requester: (S) Res
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2021 Governor's
Appropriation FY2021 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Personal Services
Capital Outlay
Grants & Benefits
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Change in Revenues
1004 Gen Fund (UGF) (3,600.0) (4,500.0) (5,500.0) (6,500.0) (6,600.0)
Total 0.0 0.0 (3,600.0) (4,500.0) (5,500.0) (6,500.0) (6,600.0)
Estimated SUPPLEMENTAL (FY2020) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2021) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? no
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Brandon Spanos, Deputy Director Phone: (907)269-6736
Division: Tax Division Date: 02/28/2020
Approved By: Brad Ewing, Administrative Services Director Date: 02/28/20
Agency: Office of Management and Budget
Printed 3/21/2020 Page 1 of 2 Control Code: GJZda
SB 130 - Fiscal Note 1
This bill amends the salmon and herring product development tax credit, which is a credit against the Fisheries Business
Tax for qualified investments in property / equipment used to create valueadded salmon and herring products. The
credit is capped at half of a taxpayers fisheries business tax liability. This bill amends the credit to: (1) include cod and
pollock in addition to salmon and herring; and (2) extend the current sunset date of the credit from December 31, 2020 to
December 31, 2025.
Revenue Impact
From fiscal years 20162019, annual value of the salmon and herring product development credit ranged from $3.1 million
to $4.4 million. Overall credit utilization is likely to increase due to the addition of the two new species of fish that qualify
for the credit. This fiscal note assumes that future credit utilization for salmon and herring products will remain similar to
historical averages for the past four years. It is difficult to determine the impact of expanding the credit to cod and pollock
products considering that historically these products have not been eligible for a credit. To estimate the potential revenue
impact, this fiscal note uses the forecasts from the fall 2019 revenue forecast for total value of cod and pollock subject to
the Fisheries Business Tax, combined with historic utilization rates for salmon and herring. This forecast has a degree of
uncertainty, but the fiscal impact is likely to range between $3.6 million to $6.6 million in credits used in the FY 20222026
timeframe. Note, this estimate does not account for any potential increase in fishery value as a result of this bill.
Implementation Cost
This legislation would require only minor changes to update its Tax Revenue Management System (TRMS) and Revenue
Online (ROL) which allows a taxpayer to file a return online. DOR will be able to make the changes with existing resources.
The Department does not anticipate any continuing costs or additional staff needs.
(Revised 10/22/19 OMB/LFD) Page 2 of 2
SB130-DOR-TAX-02-28-2020 Page 2 of 2 Control Code: GJZda

Statutes affected:
SB0130A, AM SB 130, introduced 01/21/2020: 43.75.035, 43.75.130