Bill > SB2597

This bill establishes a new income tax credit in Hawaii for taxpayers who convert a dairy farm to a hog farm, allowing them to deduct 50% of their "capital infrastructure costs" from their income tax liability, up to a certain maximum amount which is not specified in the provided text. "Capital infrastructure costs" are defined as capital expenditures, similar to those recognized by the Internal Revenue Code, specifically for real property and fixtures that are part of the conversion to a "qualified farm," which is a business operating a hog farm at former dairy farm facilities with a principal business in animal husbandry. This credit cannot be claimed for costs already receiving another tax credit, and any unused credit can be carried forward for up to five years, with all claims needing to be filed within twelve months of the close of the taxable year. The director of taxation is authorized to create necessary forms, request supporting information, and adopt rules to implement this credit, which will apply to taxable years beginning after December 31, 2025.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2597&year=2026