Bill > SB13

This bill establishes a new aquaculture investment tax credit for businesses in Hawaii that invest in qualified aquaculture operations. Specifically, the bill creates a five-year tax credit program that allows taxpayers to deduct a percentage of their qualified investment costs from their net income tax liability. The credit can be claimed in the year of investment and the four subsequent years, with specific percentages to be determined. A qualified aquaculture business is defined as an enterprise engaged in cultivating aquatic plants and animals in controlled environments for research, commercial, or stocking purposes, including aquaponics. Qualified investment costs include capital improvements like land acquisition, facility design and construction, and renovations beyond the research and development phase. The bill includes important provisions for reporting, such as requiring taxpayers to submit annual certified statements to the tax director and allowing the department to verify and certify tax credit claims. If a business no longer qualifies as a qualified aquaculture business during the five-year period or sells its interest, the tax credit may be subject to recapture. The tax credit will be available for taxable years beginning after December 31, 2025, and will take effect on July 1, 2050.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=13&year=2025