Bill > SB1260

This bill establishes an agroecological and climate-smart farming practices tax credit for farmers in Hawaii who adopt sustainable agricultural methods. The tax credit allows qualified farmers to deduct a percentage of their qualified expenses from their income tax liability, up to a maximum of $25,000 per taxable year, with a total statewide cap of $1,000,000 annually. Qualified expenses include costs associated with practices that promote soil health, fertility management, biological pest control, crop rotation, and conservation of native and Polynesian-introduced plants. These practices can include traditional Native Hawaiian agricultural systems like wetland taro cultivation, dryland field systems, agroforestry, and fishponds. Farmers must submit a certified statement to the board of agriculture detailing their qualified expenses and claimed credits by March 31 each year. If the tax credit exceeds a farmer's tax liability, the excess can be carried forward and used in subsequent years for up to five consecutive years. The bill will apply to taxable years beginning after December 31, 2025, and aims to incentivize more sustainable and environmentally friendly farming practices in Hawaii.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1260&year=2025