Bill > SB250

This bill establishes an income tax credit to help farmers, ranchers, food hubs, and broad line distributors offset the high costs of shipping agricultural products and inputs between Hawaiian counties. The tax credit will reimburse a percentage of qualified transportation costs, which include air, ocean, and land freight expenses for moving produce, agricultural goods, and production inputs across different counties. The Department of Agriculture will manage the program, verifying transportation costs and certifying credit amounts for each taxpayer. The total annual tax credit pool is limited, with specific allocations set aside for farmers/ranchers, food hubs, and distributors, and credits will be issued on a first-come, first-served basis. Qualified taxpayers can use the credit against their state income tax liability, with any excess credit potentially carried forward for up to five years. The bill is modeled after a similar U.S. Department of Agriculture program that helps geographically disadvantaged farmers with transportation costs, and aims to support local food production and reduce the economic challenges of interisland shipping. The tax credit will take effect for taxable years beginning after December 31, 2025, with an implementation date of July 1, 2050.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=250&year=2025