Bill Text: HI SB339 | 2021 | Regular Session | Amended
Bill Title: Relating To The Important Agricultural Land Qualified Agricultural Cost Tax Credit.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Engrossed - Dead) 2021-03-19 - The committee(s) on AGR recommend(s) that the measure be deferred. [SB339 Detail]
Download: Hawaii-2021-SB339-Amended.html
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THE SENATE |
S.B. NO. |
339 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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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 legislature finds that 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. Currently, the important agricultural land qualified agricultural cost tax credit is claimed over a three-year period. The legislature further finds that this tax credit is set to expire at the end of the 2021 tax year.
Extending the important agricultural land qualified cost tax credit will provide additional time to allow landowners and farmers to claim the tax credit in the event that their agricultural lands are identified as potential important agricultural lands and designated as such by the land use commission. The legislature acknowledges the State's precarious financial situation due to the coronavirus disease 2019 pandemic and finds it is necessary to allow a three-year delay for a landowner or farmer of designated important agricultural lands to claim the tax credit.
The purpose of this Act is to:
(1) Clarify that a taxpayer may claim the important agricultural land qualified cost tax credit in the third taxable year after application for the first year certification of the credit, rather than in the taxable year following the taxable year in which the qualified agricultural costs were incurred; and
(2) Extend the expiration of the important agricultural land qualified agricultural cost tax credit from December 31, 2021, to December 31, 2030.
SECTION 2. Section 235-110.93, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(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 claim the credit in consecutive or inconsecutive
taxable years until exhausted."
2. By
amending subsection (l) to read:
"(l) The department of agriculture
shall cease certifying credits pursuant to this section for taxable years
beginning after December 31, [2021;] 2030; 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, upon its approval, shall apply to taxable years beginning after December 31, 2021.
Report Title:
Important Agricultural Land Qualified Agricultural Cost Tax Credit; Extension
Description:
Clarifies that a taxpayer can claim the important agricultural land qualified agricultural cost tax credit in the third taxable year after application for first-year certification of the credit, rather than in any taxable year following the taxable year in which qualified agricultural costs were incurred. Extends the time that the department of agriculture may certify the important agricultural land qualified agricultural costs tax credit from 12/31/2021 to 12/31/2030. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
