Bill

Bill > SB250


HI SB250

Relating To Taxation.


summary

Introduced
01/15/2025
In Committee
02/05/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Regular Session

Bill Summary

Creates an income tax credit for qualified transportation costs incurred by certain taxpayers who ship agricultural products and inputs between counties. Applies to taxable years beginning after 12/31/2025. Effective 7/1/2050. (SD1)

AI Summary

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.

Committee Categories

Agriculture and Natural Resources, Budget and Finance

Sponsors (2)

Last Action

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. (on 02/05/2025)

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