Bill > SB328

This bill establishes a new income tax credit for dairy farmers who convert their facilities to hog farms, providing financial incentives for agricultural business transformation. The credit allows taxpayers to deduct fifty percent of their capital infrastructure costs from their income tax liability, up to an unspecified maximum amount. Capital infrastructure costs are defined as capital expenditures related to converting a dairy farm to a qualified farm, specifically a hog farm, and must be consistent with Internal Revenue Code guidelines. The tax credit can be used against income tax liability in the year it is claimed, and any excess credit can be applied to tax liability in subsequent years, but not more than five years after the costs were incurred. To qualify, the farm must currently own property or operate a hog farm at former dairy farm facilities and have animal husbandry as its principal business. The bill requires the director of taxation to create necessary forms, can request additional information from taxpayers, and may adopt rules to implement the credit. The tax credit will take effect on July 1, 3000, and apply to taxable years beginning after December 31, 2024, providing a long-term incentive for agricultural business adaptation.

Agriculture and Natural Resources, Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=328&year=2025