Bill Text: HI HB612 | 2023 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Engrossed - Dead) 2023-04-28 - Conference committee meeting to reconvene on 04-28-23 4:30PM; Conference Room 309 [HB612 Detail]
Download: Hawaii-2023-HB612-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
612 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that increasing local food production for local consumption is an issue of statewide interest. Strengthening the local agricultural industry in a way that revitalizes food systems can provide economic, social, ecological, and public health benefits for the lands, waters, and people of Hawaii.
The legislature further finds that Hawaii farmers, fishers, and ranchers need support to alleviate the high costs associated with agricultural production in the islands. Ensuring the viability of local food producers is critical to the State's progress toward the goals outlined in the Aloha+ challenge.
The purpose of this Act is to establish an income tax credit to alleviate the high costs of production for Hawaii's farmers, ranchers, and fishers and incentivize growth in the agricultural sector.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Farming
income tax credit. (a)
There shall be allowed to each eligible farmer subject to the tax
imposed under this chapter, an income tax credit that shall be deductible from
the eligible farmer's net income tax liability, if any, imposed by this chapter
for the taxable year in which the credit is properly claimed.
(b)
The amount of the tax credit shall be equal to the qualified expenses of
the eligible farmer, up to a maximum of $10,000.
(c) If the tax credit under this section exceeds
the eligible farmer's net income tax liability and the eligible farmer's
federal gross income is under $250,000, the excess of the credit over liability
shall be refunded to the taxpayer; provided that no refunds or payment on
account of the tax credits allowed by this section shall be made for amounts
less than $1. If the tax credit under
this section exceeds the eligible farmer's net income tax liability and the
eligible farmer's federal gross income is $250,000 or more, the excess of the
credit over liability may be used as a credit against the taxpayer's net income
tax liability in subsequent years until exhausted. All claims for the tax credit under this section,
including amended claims, shall be filed on or before the end of the twelfth
month following the close of the taxable year for which the credit may be
claimed. Failure to comply with the
foregoing provision shall constitute a waiver of the right to claim the credit.
(d) The director of taxation:
(1) Shall prepare
any forms that may be necessary to claim a tax credit under this section;
(2) May require the
taxpayer to furnish reasonable information to ascertain the validity of the
claim for the tax credit made under this section; and
(3) May adopt rules
under chapter 91 necessary to effectuate the purposes of this section.
(e) All of the provisions relating to assessments
and refunds under this chapter and under section 231-23(c)(1) shall apply to
the tax credit under this section.
(f) As used in this section:
"Eligible farmer" means
a taxpayer that provides proof of at least two-thirds of excess federal gross
income from farming or ranching, as shown by federal Form 1040 Schedule F filings,
or from fishing, as shown by federal Form 1040 Schedule C filings.
"Excess federal gross
income" means the amount of federal gross income from all sources for the
tax year."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.
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INTRODUCED BY: |
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Report Title:
Agriculture; Farmers; Ranchers; Fishers; Income Tax Credit
Description:
Creates an income tax credit to alleviate the high costs of production for farmers, ranchers, and fishers and incentivize growth in the agricultural sector in the State.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
