Bill Text: HI SB1028 | 2022 | Regular Session | Introduced

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Bill Title: Relating To The Important Agricultural Land Qualified Agricultural Cost Tax Credit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [SB1028 Detail]

Download: Hawaii-2022-SB1028-Introduced.html

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THE SENATE	S.B. NO.	1028
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE IMPORTANT AGRICULTURAL LAND QUALIFIED AGRICULTURAL COST TAX CREDIT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The purpose of this Act is to extend the important agricultural land qualified agricultural cost tax credit that will expire at the end of the 2021 tax year.  The important agricultural land qualified cost tax credit supports food self-sufficiency by providing tax credits to qualified landowners and farmers to help offset costs related to establishing and sustaining viable agricultural operations.  This extension will provide additional time to allow landowners and farmers to claim the tax credit in the event their agricultural lands are identified as potential important agricultural lands and designated as such by the land use commission.

     SECTION 2.  Section 235-110.93, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There shall be allowed to each taxpayer an important agricultural land qualified agricultural cost tax credit that may be claimed in taxable years beginning after the taxable year during which the tax credit under section 235-110.46 is repealed, exhausted, or expired.  The credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.  The tax credit amount shall be determined as follows:

     (1)  In the first year in which the credit is claimed, the lesser of the following:

          (A)  Twenty-five per cent of the qualified agricultural costs incurred by the taxpayer after July 1, 2008; or

          (B)  $625,000;

     (2)  In the second year in which the credit is claimed, the lesser of the following:

          (A)  Fifteen per cent of qualified agricultural costs incurred by the taxpayer after July 1, 2008; or

          (B)  $250,000; and

     (3)  In the third year in which the credit is claimed, the lesser of the following:

          (A)  Ten per cent of the qualified agricultural costs incurred by the taxpayer after July 1, 2008; or

          (B)  $125,000.

The taxpayer may incur qualified agricultural costs during a taxable year in anticipation of claiming the credit in future taxable years during which the credit is available.  The taxpayer may claim the credit in [any] the third taxable year after the taxable year during which the taxpayer [incurred the qualified agricultural costs upon which the credit is claimed.] applied to the department of agriculture for first-year certification of the credit.  The taxpayer [also] may subsequently claim the credit in consecutive or inconsecutive taxable years until exhausted."

     SECTION 3.  Section 235-110.93, Hawaii Revised Statutes, is amended by amending subsection (l) to read as follows:

     "(l)  The department of agriculture shall cease certifying credits pursuant to this section for taxable years beginning after December 31,[2021;] 2031; provided that a taxpayer with accumulated, but unclaimed, certified credits may continue claiming the credits in subsequent taxable years until exhausted."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	BY REQUEST

 

 

Report Title:

Important Agricultural Land Qualified Agricultural Costs Tax Credit

 

Description:

Extends through the 2031 tax year the time that the Department of Agriculture may certify important agricultural lands qualified agricultural costs.  Delays Taxpayers from claiming and applying the credit for at least three full taxable years after credit is earned, to help address State's current fiscal concerns.

 

 

 

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