Bill > SB369

This bill aims to enhance Hawaii's food supply chain resilience by establishing a new tax credit program and expediting permitting processes for food and beverage businesses. The bill creates a refundable income tax credit equal to 40% of qualified food and beverage supply chain costs, with a total annual cap of $2,000,000 across all qualified taxpayers. The credit covers expenses such as labor costs, infrastructure improvements, equipment purchases, utilities, and food donation program development for businesses involved in food production, processing, distribution, storage, and retailing. The Department of Business, Economic Development, and Tourism (DBEDT) will manage the credit program, including registering taxpayers, maintaining records, and certifying eligible costs. Additionally, the bill requires DBEDT to establish expedited permitting processes for food-related projects, mandating that permits for building storage facilities, expanding retail operations, and establishing agricultural infrastructure be reviewed and approved within 180 days. The legislature justifies these measures by highlighting Hawaii's vulnerability to supply chain disruptions due to geographic isolation and the need to improve local food production and food security, particularly given that one in three Hawaii residents experience food insecurity.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=369&year=2026