Instructions For 2013 Alaska Fisheries Business Tax Annual Return (Page 3 of 8) in pdf

returns should be submitted to the department along with

No credit may be taken by a taxpayer in arrears in

tax due no later than the last day of the month following

the payment of assessments under AS 16.51.120

the month in which the payments were made. If you make

(Alaska Seafood Marketing), AS 23.20 (Unemployment

additional payments before filing your seafood marketing

Insurance), or all taxes under AS 43 (for example, Alaska

assessment return, you should include those payments

Fisheries Business, Dive, and Corporate Income).

as part of the values reported on your original seafood

marketing assessment return (Form 578).

Carryforward

Any unused credit may be carried forward and applied

against the tax liability incurred on salmon for the following

SALMON PRODUCT DEVELOPMENT TAX CREDIT

three tax years.

A licensed fisheries business may claim a Salmon Product

Development (SPD) tax credit for new equipment used to

Recapture (Payback) Provisions

produce value-added salmon products.

If property for which a credit was claimed under AS

43.75.035 is sold, disposed of or removed from service in

Who May Qualify for This Credit

the state within three years from the date it was originally

If you processed salmon in Alaska and placed qualified

placed in service, it is subject to recapture (payback).

new equipment in service in the state, you may qualify for

a credit.

The amount of credit recapture is determined by the length

of time the property was in use in Alaska. If the property is

SPD Instructions

sold, disposed of or removed from service in:

Use the SPD credit and recapture worksheets (Part II and

III) to calculate the credit allowed or recapture required. The

• the same year the property was placed in service or the

credit may be applied against the salmon tax liability of any

first year following the year the property was placed in

licensed facility operated by the taxpayer.

service, the recapture percentage is 100%

Taxpayers with more than one licensed facility must report

• the second year following the year the property was

each facility’s activities in a separate column for each

placed in service, the recapture percentage is 75%

fisheries business license.

• the third year following the year the property was placed

Attach a copy of Part I and all worksheets to your tax return.

in service, the recapture percentage is 50%

If you have more than one licensed facility, attach a copy

• the fourth or subsequent year following the year the

of all forms and worksheets to the return for each licensed

property was placed in service, there is no recapture.

facility that generated a credit, had a recapture event, or to

which you allocated a credit or recapture.

Equipment used on a vessel is considered to have been

removed from the state on the first day of a tax year in which

Forms are available on our website at

the proportion of raw salmon processed in the state on the

fish. Photocopy the forms as needed or request additional

vessel is less than 50 percent of the total weight of raw

forms from the Tax Division.

salmon processed on the vessel in and outside of the state

(the “Alaska Percentage”).

Effective Dates

The SPD credit is for a qualified investment placed in

Once recaptured, the credit cannot be reinstated, even if

service before January 1, 2016. Carryforward and recapture

the Alaska Percentage exceeds 50% in a subsequent tax

provisions apply for up to three years.

year.

Limitations

Part I Schedule SPD Credit and Recapture Summary

A credit may not exceed 50% of the amount of tax liability

The summary schedule calculates the total credit available,

incurred from processing salmon. An unused credit may be

the credit limit, carry forwards and recapture tax. Taxpayers

carried forward and applied against the tax on salmon for

with multiple facilities must complete one column for each

three years, subject to the 50% limitation.

license. The total column represents the combined credits

generated and recaptured by individual facilities.

Vessels must perform 50% or more of their total salmon

processing in Alaska (see the “Alaska Percentage”

The taxpayer must assign the total credit and recapture

definition) in order to qualify for the credit on new property.

tax to its facilities, which are reported on separate fisheries

If you qualify, your qualified investment is limited to the

business tax returns. Attach this form to each return to

investment in new property multiplied by your “Alaska

which a credit or recapture tax is allocated.

Percentage.”

A qualified expenditure or investment for which credit is

Part II Schedule SPD Credit Worksheet

You must complete a separate worksheet for each licensed

claimed under AS 43.75.035 may not be claimed for any

facility that generated a credit to determine the amount of

other credit under AS 43. Federal, state or local grant funds

credit generated by that facility during the tax year. If you

used to purchase qualified property must be subtracted

processed only salmon and only in Alaska, your Alaska

from the cost of the property.

0405-574i Rev 12/19/13 - page 3

Instructions For 2013 Alaska Fisheries Business Tax Annual Return Page 3

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