Relating To The Important Agricultural Land Qualified Agricultural Cost Tax Credit.
The bill modifies Section 235-110.93 of the Hawaii Revised Statutes, allowing taxpayers to deduct the tax credit from their net income tax liability for taxable years following the expiration of a previous related credit. Taxpayers are able to claim up to 25% of qualified agricultural costs in the first year, decreasing to 10% in subsequent years, with upper limits on amounts that can be claimed. This gradual decrease is intended to balance support for agriculture while addressing fiscal concerns within the state.
Senate Bill 1028 aims to extend the important agricultural land qualified agricultural cost tax credit in Hawaii, which is set to expire at the end of the 2021 tax year. This tax credit supports food self-sufficiency by aiding qualified landowners and farmers in offsetting costs related to establishing and maintaining viable agricultural operations. The extension of this credit is designed to provide additional time for landowners and farmers whose agricultural lands are recognized as potential important agricultural lands to claim tax benefits related to such designations.
Despite the benefits touted by supporters of SB1028, there may be points of contention regarding its long-term implications for state fiscal health and its impact on local agriculture. While proponents argue that extending the tax credits will enhance food self-sufficiency and agricultural sustainability, critics might raise concerns about the effectiveness and overall cost to the state. The debate over agricultural subsidies and tax credits often surfaces discussions about prioritizing funding in the face of fiscal constraints.