It is now on the way to Gov. Sarah Palin for her signature.

Salmon processors can take a credit of up to 50 percent of the cost of new equipment purchased to do value-added processing. The credit can be applied against the processor’s state fisheries business tax, a levy on the ex-vessel value of fish landed. If HB 321 had not passed, the tax credit program would have expired Dec. 31, 2008.

Rep. Bill Thomas, R-Haines, said the tax credit program has stimulated many changes in Alaska’s salmon industry since it was adopted in 2003.

“This tax credit has made a substantial difference in the modernization of processing equipment and facilities needed to cap off the turnaround the industry has seen,” Thomas said.

Part of the fisheries business tax is shared with local communities to help them provide support to fisheries activity.

“The new technology and equipment that will be funded by extending the tax credit will help strengthen those communities,” Thomas said.