Bill Text: HI SB1315 | 2022 | Regular Session | Introduced
Bill Title: Relating To Agriculture.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2022-02-18 - Report adopted; Passed Second Reading and referred to WAM. [SB1315 Detail]
Download: Hawaii-2022-SB1315-Introduced.html
THE SENATE |
S.B. NO. |
1315 |
THIRTY-FIRST LEGISLATURE, 2021 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO AGRICULTURE.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State has a goal to double local food production by 2030. While the State currently imports eighty-five to ninety per cent of its food, fuel, and fiber, agriculture was once Hawaii's number one industry, creating agricultural abundance, peace, and prosperity for its people.
The legislature further finds that one of the barriers to growing more food and increasing agricultural production in Hawaii is the lack of access to capital. There is limited to no incentive for investors to invest in Hawaii's agricultural production, which would help support and revitalize Hawaii's agriculture industry. According to the department of business, economic development, and tourism, replacing just ten per cent of the food we currently import would amount to approximately $313,000,000. Assuming a thirty per cent farm share, $94,000,000 would be realized at the farm-gate, which would generate an economy-wide impact of an additional $188,000,000 in sales, $47,000,000 in earnings, $6,000,000 in state tax revenues, and more than two thousand three hundred jobs.
The purpose of this Act is to establish a food manufacturing tax credit to allow Hawaii to become a world leader in food security, self-sufficiency, and sustainability.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Food
manufacturing tax credit. (a) There
shall be allowed to each qualified taxpayer subject to the tax imposed under this
chapter an income tax credit that 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.
(b) The
amount of the tax credit shall be equal to the qualified expenses of the qualified
taxpayer, up to a maximum of $ .
(c) In
the case of a partnership, S corporation, estate, or trust, the tax credit allowable
shall be for qualified expenses incurred by the entity for the taxable year. The expenses upon which the tax credit is computed
shall be determined at the entity level. Distribution and share of credit shall be determined
by rule.
(d) The
total amount of tax credits allowed under this section shall not exceed $
for all qualified taxpayers in any taxable year; provided that any taxpayer who
is not eligible to claim the credit in a taxable year due to the $
cap having been exceeded for that taxable year shall be eligible to claim the credit
in the subsequent taxable year.
(e) Every
qualified taxpayer, before March 31 of each year in which qualified expenses were
incurred by the taxpayer in the previous taxable year, shall submit a written, certified
statement to the chairperson of the board of agriculture identifying:
(1) Qualified expenses
incurred in the previous taxable year; and
(2) The amount of the
tax credit claimed by the taxpayer pursuant to this section, if any, in the previous
taxable year.
(f) The board of agriculture shall:
(1) Maintain records
of the names and addresses of the qualified taxpayers claiming the credits under
this section and the total amount of the qualified expenses upon which the tax credits
are based;
(2) Verify the nature
and amount of the qualified expenses;
(3) Total all qualified
and cumulative expenses that the board certifies; and
(4) Certify the amount
of the tax credit for each taxpayer for each taxable year and the cumulative amount
of the tax credit.
Upon each determination made under this subsection,
the board of agriculture shall issue a certificate to the taxpayer verifying information
submitted to the board of agriculture, including amounts of qualified expenses,
the credit amount certified for the taxpayer for each taxable year, and the cumulative
amount of tax credits certified. The taxpayer
shall file the certificate with the taxpayer's tax return with the department of
taxation. The board of agriculture may assess
and collect a fee to offset the costs of certifying tax credit claims under this
section.
(g) 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.
(h) If the tax credit under this section exceeds the
taxpayer's net income tax liability, 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.
(i) As used in this section:
"Net
income tax liability" means income tax liability reduced by all other credits
allowed under this chapter.
"Qualified
taxpayer" means food manufacturers that produce value-added products using
local crops."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021.
INTRODUCED BY: |
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Report Title:
Food Manufacturer Tax Credit
Description:
Establishes a food manufacturer tax credit. Defines qualified taxpayers as manufacturers that produce value-added products using local crops.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.