Bill > SB2887

This bill establishes a new nonrefundable income tax credit for eligible taxpayers who engage in agricultural activities on Hawaiian home lands, which are lands set aside for Native Hawaiians. An eligible taxpayer is defined as someone in an agricultural business who leases or has permission to use Hawaiian home lands designated for specific agricultural or pastoral uses under the Hawaiian Homes Commission Act of 1920. The credit will apply to qualified agricultural investment costs, which include expenditures for infrastructure like irrigation systems and processing facilities, equipment for cultivation and harvesting, related professional services, establishing orchards, and clearing land that has been out of agricultural use for over five years. The credit amount will be a percentage of these costs, with a cap on the total credit claimed annually, and any unused credit can be carried forward. The Department of Taxation, in coordination with the Department of Hawaiian Home Lands, will create rules to implement this credit, which will be effective for taxable years beginning after December 31, 2026, with the law itself taking effect on July 1, 2050.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2887&year=2026