Bill Text: HI SB496 | 2021 | Regular Session | Amended
Bill Title: Relating To Agriculture.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Engrossed - Dead) 2021-04-21 - Received notice of Senate conferees (Sen. Com. No. 849). [SB496 Detail]
Download: Hawaii-2021-SB496-Amended.html
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THE SENATE |
S.B. NO. |
496 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 2 |
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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:
PART I
SECTION 1. (a) There is established within the department of agriculture an agricultural import replacement task force to identify the top ten fruit and vegetable imports to the State that may be commercially grown by farmers in the State.
(b) The task force shall consist of the following members:
(1) A representative from the department of agriculture;
(2) A representative from the university of Hawaii college of tropical agriculture and human resources;
(3) The assistant superintendent of the office of facilities and operations from the department of education;
(4) A representative from the Hawaii Farm Bureau federation, who shall be invited to be a member by the chairperson of the board of agriculture;
(5) A representative from the Hawaii Farmers Union United, who shall be invited to be a member by the chairperson of the board of agriculture; and
(6) A representative from the local food distribution industry, who shall be invited to be a member by the chairperson of the board of agriculture.
(c) The task force shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than December 1, 2022.
PART II
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Agricultural import replacement 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 less any grant money received under section 141-10, up to a maximum of $
in any taxable year.
(c) In
the case of a partnership, S corporation, estate, or trust, the tax credit allowable
is 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
pursuant to section 704(b) of the Internal Revenue Code.
(d) The
amount of the tax credits allowed under this section shall not exceed $5,000,000
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 $5,000,000 tax
credit cap being reached 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 year;
(2) The amount of the
tax credit claimed by the taxpayer pursuant to this section, if any, in the previous
taxable year; and
(3) The amount, if any,
of any grant provided to the taxpayer under section 141-10.
(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 of 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
qualified taxpayer verifying information submitted to the department of agriculture,
including:
(1) Amounts of qualified expenses;
(2) The credit amount certified for the taxpayer
for each taxable year; and
(3) The cumulative amount of tax credits certified.
The qualified taxpayer shall file the certificate
with the qualified 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
qualified 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:
"Agricultural import replacements"
means the fruits or vegetables grown in the State and sold for consumption in the
State or for use by business entities licensed and registered in the State that
are the same types of fruits and vegetables identified by the agricultural import
replacement task force established by Act , Session
Laws of Hawaii 2021, as agricultural imports.
"Agricultural imports" means
the top ten fruits or vegetables, as identified by the agricultural import replacement
task force established by Act , Session Laws of Hawaii
2021, that are imported into the State but may be commercially grown in the State.
"Net income tax liability"
means income tax liability reduced by all other credits allowed under this chapter.
"Qualified expenses" means
expenses incurred by a qualified taxpayer to produce agricultural import replacements,
including costs for any equipment, materials, or supplies necessary to grow agricultural
import replacements.
"Qualified taxpayer" means any person, business entity, or cooperative association of persons engaged in the State in the growing or production of agricultural import replacements."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050; provided that section 2 of this Act shall apply to taxable years beginning after December 31, 2022.
Report Title:
Agricultural Import Replacements; Task Force; Income Tax Credit
Description:
Establishes a task force to identify the top 10 fruits and vegetables that are imported into the State but may be commercially grown in the State. Creates an income tax credit to incentivize the production of those fruits or vegetables to obviate the need to import them into the State. Effective 7/1/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
