Bill > SB13

This bill establishes a new tax credit for businesses investing in aquaculture in Hawaii, which is designed to encourage the development of businesses that cultivate aquatic plants and animals in controlled environments. For taxable years beginning after December 31, 2025, eligible taxpayers can claim a tax credit for qualified investment costs over a five-year period, with the credit amount and specific percentages to be determined. The credit can be applied against the taxpayer's net income tax liability and can be claimed for investments in facilities such as land acquisition, facility construction, and renovations related to aquaculture businesses. Taxpayers must submit annual certified statements to the Department of Taxation detailing their investments and claimed credits, and the department will verify and track these claims. If a business no longer qualifies as a "qualified aquaculture business" or sells its investment during the five-year period, the tax credit may be partially recaptured. The bill defines "qualified aquaculture business" broadly to include activities like aquaponics and aquatic plant and animal cultivation for research or commercial purposes, and "qualified investment costs" are specifically limited to capital improvements beyond the research and development phase. The tax credit provisions will take effect on July 1, 2050, and apply to taxable years beginning after December 31, 2025.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=13&year=2026