Bill Text: HI HB2190 | 2022 | Regular Session | Introduced
Bill Title: Relating To The Important Agricultural Land Qualified Agricultural Cost Tax Credit.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2022-01-28 - Referred to AGR, ECD, FIN, referral sheet 3 [HB2190 Detail]
Download: Hawaii-2022-HB2190-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2190 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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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 agricultural 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 the ability of taxpayers to claim the tax credit effectively expired when the department of agriculture's certification authority ended on December 31, 2021.
Extending the important agricultural land qualified agricultural 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 subsequently designated as such by the land use commission. The legislature acknowledges the State's precarious financial situation due to the coronavirus disease 2019 (COVID-19) pandemic and finds that 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 agricultural 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 date of the department of agriculture's certification authority with regard to the important agricultural land qualified agricultural cost tax credit from December 31, 2021, to December 31, 2031.
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 first
claim the credit no earlier than 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."
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;] 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, upon its approval, shall apply to taxable years beginning after December 31, 2021.
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INTRODUCED BY: |
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Report Title:
Income Taxation; Important Agricultural Land Qualified Agricultural Cost Tax Credit; HDOA; Extension
Description:
Clarifies that a taxpayer may claim the important agricultural land qualified agricultural cost tax credit no earlier than the third taxable year after application for first-year certification of the credit. Extends the time that the department of agriculture may certify the important agricultural land qualified agricultural costs tax credit from 12/31/2021 to 12/31/2031.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
