Bill > HB499

This bill aims to enhance Hawaii's food supply chain resilience by establishing a new income tax credit and streamlining permitting processes for food and beverage businesses. The tax credit will provide qualified taxpayers, including farmers, processors, distributors, retailers, and food banks, with a refundable credit equal to 40% of their qualified food and beverage supply chain costs, up to a maximum amount (specific amount not specified in the bill). The total tax credits available are capped at $2,000,000 per year, with at least 25% reserved for small-scale producers and community-based organizations. Qualified expenses include labor costs, infrastructure improvements, equipment purchases, utilities, and food donation program development. The Department of Business, Economic Development, and Tourism (DBEDT) will administer the program, maintain records, establish performance metrics, and issue certificates to taxpayers. Additionally, the bill requires DBEDT to create expedited permitting processes for food and beverage supply chain projects, with a commitment to review and approve permits within 180 days of submission. The bill recognizes Hawaii's vulnerability to supply chain disruptions due to geographic isolation and aims to increase local food production, reduce food insecurity, and prepare the state for potential emergencies by supporting local food system businesses. The tax credit will be applicable to taxable years beginning after December 31, 2025.

Agriculture and Natural Resources, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=499&year=2026