Bill Text: HI SB3031 | 2018 | Regular Session | Amended
Bill Title: Relating To The Organic Foods Production Tax Credit.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Engrossed - Dead) 2018-03-23 - Passed Second Reading and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) C. Lee, Lowen, McDermott, Souki, Tokioka excused (5). [SB3031 Detail]
Download: Hawaii-2018-SB3031-Amended.html
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THE SENATE |
S.B. NO. |
3031 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE ORGANIC FOODS PRODUCTION TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to clarify and strengthen the organic foods production tax credit.
SECTION 2. Section 235-110.94, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (b) to read:
"(b) The amount of the tax credit shall be equal
to the qualified expenses of the qualified taxpayer, up to a maximum of $50,000[.]
per qualified taxpayer."
2. By amending subsection (d) to read:
"(d) The total amount of tax credits allowed under
this section shall not exceed $2,000,000 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 $2,000,000 cap having been exceeded
for that taxable year shall be eligible to claim the credit in the subsequent
taxable year]. In a taxable year
where the total of $2,000,000 in tax credits has been exceeded, all taxpayers
eligible to claim the tax credit during that tax year shall be credited on a
pro rata basis so that the cumulative amount of tax credits certified for the
taxable year is $2,000,000. For purposes
of this subsection, "pro rata basis" means a fraction that the department
shall determine by dividing $2,000,000 by the cumulative amount of all
qualified expenses submitted for the taxable year, then multiplying that
quotient by each taxpayer's qualified expenses for the taxable year."
3. By amending subsection (f) to read:
"(f) The department 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 department 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 department of agriculture shall issue a certificate to the taxpayer verifying information submitted to the department 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.]"
4. By amending subsection (i) to read:
"(i) As used in this section:
"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.
"Organic Foods Production Act" means the federal Organic Foods Production Act of 1990, as amended (7 United States Code section 6501 et seq.).
"Organic system plan" has the same meaning as provided in 7 Code of Federal Regulations section 205.2.
"Qualified expenses" means
expenses incurred by a qualified taxpayer to [produce organically produced
agricultural products, including expenses incurred to obtain] apply for,
obtain, and maintain organic certification from the United States
Department of Agriculture, pursuant to the Organic Foods Production Act. "Qualified expenses" include:
(1) Application fees;
(2) Inspection costs;
(3) Fees related to equivalency agreement/arrangement requirements, travel/per diem for inspectors, user fees, sales assessments, and postage; and
(4) Costs for any
equipment, materials, or supplies necessary for organic certification [or
production of agricultural products], in accordance with the qualified
taxpayer's organic system plan [and the organic production and handling
requirements of] pursuant to the National Organic Program, codified
at 7 Code of Federal Regulations part 205, subpart C[, including but not
limited to certified organic seed, cover crops, or animal feed].
"Qualified expenses" shall not include any amount refunded or to be refunded to the taxpayer by the United States Department of Agriculture's organic certification cost-share program or any other similar financial assistance program.
"Qualified taxpayer" means
a producer[, handler, or handling operation,] as [those terms are]
defined in title 7 United States Code section 6502:
(1) That sells agricultural products in adherence to the standards and requirements of the Organic Foods Production Act;
(2) That has applied for organic certification, in accordance with the requirements of the Organic Foods Production Act; and
(3) Whose gross income from the sale of organically produced agricultural products for the most recently reported fiscal year totals no more than $500,000."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect of July 1, 2050, and shall apply to taxable years beginning after December 31, .
Report Title:
Organic Foods Production Tax Credit
Description:
Clarifies and strengthens the organic foods production tax credit. Effective 7/1/2050. Applies to unspecified taxable years. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
