Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
Broadcast Actualities: 800/478-6540

For Immediate Release: January 16, 1997 Contact: Jerry Mackie 907/465-4925

Commercial Fishing Tax Incentives Proposed

Juneau -- Providing development incentives for the commercial fishing industry, Senate Bill 52 introduced by Senator Jerry Mackie Thursday will increase operational efficiencies, improve product quality, and encourage the development of new seafood products for the marketplace.

"I believe SB 52 will be the best way to bring some stability and growth to Alaska's commercial fisheries industry. It will benefit fishermen, processors, and the processing labor force alike," Mackie said.

Senator Mackie, along with co-sponsors Senators John Torgerson, Robin Taylor and Loren Leman noted that Senate Bill 52 will allow seafood processors to obtain a tax credit of up to fifty percent of the tax liability for new improvements to shore-based facilities. The allowance is limited to three consecutive years. The credit applies to the improvements only and cannot exceed fifty percent of a taxpayer's total business tax liability.

"Past business incentives seem to have focused more on oil and gas development than they have on Alaska’s historical business industries," said Senator Torgerson. "This legislation is significant for Alaskans in our coastal communities who have relied on the fishing industry as an industrial base for their livelihood."

"What a lot of people don’t understand is the fishing industry in Alaska provides jobs for about 70,000 people -- far more than any other industry in Alaska," said Senator Leman. "Unfortunately, Alaska’s salmon industry is now in a world of hurt when it comes to prices. We need to pursue ways to encourage new investment that will provide for better quality and value-added products in Alaska, which will in turn result in better prices. SB 52 will be a good start."

"I believe this tax credit initiative will benefit the entire seafood industry and will specifically benefit those fish dependent communities in Alaska," said Senator Taylor.

The legislation is similar to a program enacted in 1986 which lasted until 1992. That program facilitated the rapid immersion of the state's fishermen and shore based processors into the new bottom fisheries opportunities of the 200 mile offshore zone. It helped introduce surimi production and other bottom fish processing to the state. The credit was also used to improve product quality and quality control in many of the salmon processing facilities throughout the state.

Mackie said that he believes that SB 52 will strengthen the Alaska seafood industry's participation in the world's markets. "This will stimulate the facility improvements necessary to increase market competitiveness," Mackie said. Like the earlier program, he feels that it will result in increased fishing opportunities to resident commercial fishermen, new products and increased onshore processing jobs.

"The seafood industry is the largest private sector employer and contributor to local economies in the state," Mackie stated. "I hope that its economic health will be a priority concern for this legislative session."

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