"An Act relating to the salmon product development tax credit; providing for an effective date by amending an effective date in sec. 7, ch. 57, SLA 2003; and providing for an effective date. "
Section 1-No Change from version that passed the Senate
Section 1 changes the sunset date. Property purchased and put into service before December 31, 2008 will be eligible for the tax credit.
Section 2-No Change from version that passed the Senate
Section 2 alters the existing definition of "qualified investment" by adding more specific language to explain what is meant by production of value-added salmon products. The bill explains that the product development tax credit can be applied to purchases for the purpose of performing a processing, packaging, or product finishing function that is a significant component in producing value-added salmon products.
Section 2 also includes restrictive language on what types of equipment can fall under this tax credit. For example, parts to convert an existing can steamer to pop-top production will earn the tax credit but transportation equipment and tools incidental to packaging and finishing of value-added salmon products will not. Removal, overhauls and modification of new or existing property except for conversion of existing can steamers to pop-top can production also will not earn the credit.
Section 3-No Change (note: this was Section 4 in version that passed the Senate)
Section 3 adds a new definition section for "value-added salmon product" that defines the term and includes an explanation of what the terms does not mean. The product must be processed beyond heading, gutting, or separation in a manner that materially enhances the value of the salmon product.
Section 4-No Change (note: this was Section 5 in version that passed the Senate)
Section 4 changes the effective date of the repeal of the credit to January 1, 2012. (Note: existing statute 43.75.035(d) says that an unused credit under this section may be carried forward and applied against the tax liability incurred on salmon in the following three years.)
Section 5-New Retroactivity Clause
Retroactivity clause makes Section 2 (definition of qualified investment) and Section 3 (definition of value-added salmon product) retroactive to January 1, 2006 to provide for seamless continuation of the program.