Bill Text: HI HB610 | 2024 | Regular Session | Amended

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Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Engrossed - Dead) 2024-03-25 - Received notice of discharge of all conferees (Hse. Com. No. 457). [HB610 Detail]

Download: Hawaii-2024-HB610-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	610
THIRTY-SECOND LEGISLATURE, 2023		H.D. 2
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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

 

     SECTION 1.  The purpose of this Act is to establish a farm workforce retention tax credit for farm employers or owners of farm employers.

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part VI to be appropriately designated and to read as follows:

     "§235-     Farm workforce retention tax credit.  (a)  There shall be allowed to each qualified taxpayer subject to the tax imposed by this chapter a farm workforce retention tax credit that shall be applied to the qualified 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 tax credit amount shall be as follows:

     (1)  For the taxable year beginning after December 31, 2023:  $           per eligible farm employee employed by the qualified taxpayer;

     (2)  For the taxable year beginning after December 31, 2024:  $           per eligible farm employee employed by the qualified taxpayer;

     (3)  For the taxable year beginning after December 31, 2025:  $           per eligible farm employee employed by the qualified taxpayer;

     (4)  For the taxable year beginning after December 31, 2026:  $           per eligible farm employee employed by the qualified taxpayer; and

     (5)  For the taxable year beginning after December 31, 2027:  $           per eligible farm employee employed by the qualified taxpayer.

     (c)  If a farm employee employed by the qualified taxpayer becomes unable to work due to a documented illness or disability, the qualified taxpayer may combine the hours the farm employee was employed during the taxable year with the hours of another farm employee hired to replace the ill or disabled farm employee in the same taxable year when determining whether the farm employee meets the minimum requirement for the number of hours worked per taxable year to meet the definition of "eligible farm employee" for the purposes of this section.  The qualified taxpayer shall obtain proof of illness or disability for the ill or disabled farm employee in the form of a written statement from a health care provider licensed, certified, or otherwise permitted by law to diagnose or treat the physical or mental condition that led to the claimed illness or disability.  The statement shall include:

     (1)  The name and a description of the farm employee's illness or disability;

     (2)  The health care provider's medical opinion that the illness or disability prevented the farm employee from working;

     (3)  The specific time period during which the farm employee is or was unable to work due to illness or disability, to the best of the health care provider's knowledge; and

     (4)  The following certification signed by the health care provider:  "I hereby certify that, to the best of my knowledge and belief, the above representations are true, correct, and complete."

The qualified taxpayer shall retain documentation of the hours worked and proof of illness or disability for all eligible farm employees and shall make the documentation and proof available to the department upon request.  Workers who are part of the H‑2A Temporary Agricultural Program that meet the definition of "eligible farm employee" may be included in the computation of this tax credit.

     (d)  In the case of a partnership, S corporation, estate, or trust, the tax credit shall be determined at the entity level.  Distribution and share of credit shall be determined by rule.

     (e)  The credit allowed under this section shall be claimed against the net income tax liability for the taxable year.  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

     (f)  All claims, including any amended claims, for a tax credit under this section 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.

     (g)  The director of taxation:

     (1)  Shall prepare any forms that may be necessary to claim a credit under this section;

     (2)  May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section; and

     (3)  May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

     (h)  This section shall not apply to taxable years beginning after December 31, 2028.

     (i)  For the purposes of this section:

     "Eligible farm employee" means an individual who is employed for five hundred hours or more per taxable year by a farm employer in the State.  "Eligible farm employee" does not include general executive officers of the farm employer.

     "Excess federal gross income" means the amount of federal gross income from all sources for the taxable year in excess of $30,000.

     "Farm employer" means a person:

     (1)  Who is a corporation, including an S corporation, sole proprietorship, limited liability company, or a partnership; and

     (2)  Whose federal gross income from farming for the taxable year is at least two-thirds of the person's excess federal gross income.

     "Farming" means the operation or management of livestock, dairy, poultry, fish, fruit, furbearing animals, vegetable farms, plantations, ranches, ranges, or orchards.

     "Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

     "Owner of a farm employer" includes shareholders of a Hawaii S corporation, partners in a partnership, members of a limited liability company, or beneficiaries of an estate or trust.

     "Qualified taxpayer" means a farm employer or an owner of a farm employer."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on June 30, 3000, and shall apply to taxable years beginning after December 31, 2023.

 

Report Title:

Farm Workforce Retention Tax Credit; Farm Employment

 

Description:

Establishes the farm workforce retention tax credit for farm employers or owners of farm employers who employ eligible farm employees.  Effective 6/30/3000.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.