Hawaii House Bill HB94

Hawaii 2022 Regular Session

• Introduced: 1/21/21
• Refer: 1/27/21

Caption

Relating To Agriculture.

Impact

One notable component of HB94 is the introduction of an income tax credit for qualified taxpayers engaged in the production of these identified agricultural import replacements. This tax credit is intended to incentivize farmers and businesses by allowing them to deduct certain qualified expenses related to production. The maximum amount of tax credits allocated across all taxpayers is capped at $5,000,000 annually, which aims to ensure that benefits reach a broad range of producers while managing fiscal implications for the state.

Summary

House Bill 94 aims to enhance local agricultural production in Hawaii by addressing the reliance on imported fruits and vegetables. The bill establishes an agricultural import replacement task force tasked with identifying the top ten fruits and vegetables that are currently imported but may be grown commercially within the state. This initiative seeks to foster self-sufficiency in agriculture, which is essential for ensuring food security and supporting local economies. The task force is composed of representatives from key agricultural entities and is required to report its findings and legislative recommendations by December 2022.

Contention

Some points of contention surrounding the bill may arise from the tax credit limitations and the eligibility criteria for local farmers. Advocates believe that the proposed measures will empower local farmers and stimulate economic growth in the agricultural sector. However, critics may express concerns about the sufficiency of the tax credits offered and whether they are adequate for covering the expenses incurred by smaller producers. Additionally, discussions around the effectiveness of the task force in genuinely identifying viable crops will likely continue as the bill progresses.