Bill > SB250

This bill establishes an income tax credit for qualified taxpayers who transport agricultural products and inputs between counties in Hawaii, addressing the high costs of interisland transportation for farmers and food producers. The tax credit will reimburse a percentage of qualified transportation costs, including air, ocean, and land freight for produce, agricultural goods, and agricultural inputs, up to a specified maximum amount. The Department of Agriculture will be responsible for maintaining records, verifying transportation costs, and certifying the total tax credit amount for each taxpayer. The bill sets annual caps on total credits, with specific allocations for farmers/ranchers, food hubs, and broad line distributors, ensuring credits are issued on a first-come, first-served basis. Qualified taxpayers can use excess credits against future tax liabilities for up to five years. The bill defines key terms like "qualified taxpayer," which includes farmers, ranchers, distributors, and food hubs who share agricultural production risks, and "qualified transportation costs," which cover various shipping expenses between counties. This legislation aims to support local food production, reduce transportation cost barriers, and align with Hawaii's Aloha+ Challenge commitment to increase local food consumption and production. The tax credit will apply to 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=250&year=2026