Hawaii 2022 Regular Session

Hawaii Senate Bill SB2435 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	THE SENATE S.B. NO. 2435 THIRTY-FIRST LEGISLATURE, 2022 ~~S.D. 1~~ STATE OF HAWAII 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:
	1	+	THE SENATE S.B. NO. 2435 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII 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:
2	2
3	3		THE SENATE S.B. NO. 2435
4		-	THIRTY-FIRST LEGISLATURE, 2022 ~~S.D. 1~~
	4	+	THIRTY-FIRST LEGISLATURE, 2022
5	5		STATE OF HAWAII
6	6
7	7		THE SENATE
8	8
9	9		S.B. NO.
10	10
11	11		2435
12	12
13	13		THIRTY-FIRST LEGISLATURE, 2022
14	14
15		-	~~S.D. 1~~
	15	+
16	16
17	17		STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31		A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37		RELATING TO THE IMPORTANT AGRICULTURAL LAND QUALIFIED AGRICULTURAL COST TAX CREDIT.
38	38
39	39
40	40
41	41
42	42
43	43		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47		-	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 purpose of this Act is to 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 by amending subsection (l) to read ~~as follows~~: "(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 ~~shall take effect on July 1~~, ~~2050~~, ~~and~~ shall apply to taxable years beginning after December 31, 2021.
	47	+	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. INTRODUCED BY: _____________________________
48	48
49	49		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.
50	50
51		-	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.
	51	+	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.
52	52
53		-	The purpose of this Act is to 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.
	53	+	The purpose of this Act is to:
54	54
55		-	SECTION 2. Section 235-110.93, Hawaii Revised Statutes, is amended by amending subsection (l) to read as follows:
	55	+	(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
	56	+
	57	+	(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.
	58	+
	59	+	SECTION 2. Section 235-110.93, Hawaii Revised Statutes, is amended as follows:
	60	+
	61	+	1. By amending subsection (a) to read:
	62	+
	63	+	"(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:
	64	+
	65	+	(1) In the first year in which the credit is claimed, the lesser of the following:
	66	+
	67	+	(A) Twenty-five per cent of the qualified agricultural costs incurred by the taxpayer after July 1, 2008; or
	68	+
	69	+	(B) $625,000;
	70	+
	71	+	(2) In the second year in which the credit is claimed, the lesser of the following:
	72	+
	73	+	(A) Fifteen per cent of qualified agricultural costs incurred by the taxpayer after July 1, 2008; or
	74	+
	75	+	(B) $250,000; and
	76	+
	77	+	(3) In the third year in which the credit is claimed, the lesser of the following:
	78	+
	79	+	(A) Ten per cent of the qualified agricultural costs incurred by the taxpayer after July 1, 2008; or
	80	+
	81	+	(B) $125,000.
	82	+
	83	+	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."
	84	+
	85	+	2. By amending subsection (l) to read:
56	86
57	87		"(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."
58	88
59	89		SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
60	90
61		-	SECTION 4. This Act ~~shall take effect on July 1~~, ~~2050~~, ~~and~~ shall apply to taxable years beginning after December 31, 2021.
	91	+	SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021.
62	92
63		-	Report Title: Income Taxation; Important Agricultural Land Qualified Agricultural Cost Tax Credit; HDOA; Extension Description: Extends the time that the Department of Agriculture may certify the important agricultural land qualified agricultural cost tax credit from 12/31/2021 to 12/31/2031. Effective 7/1/2050. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
	93	+
	94	+
	95	+	INTRODUCED BY: _____________________________
	96	+
	97	+	INTRODUCED BY:
	98	+
	99	+	_____________________________
	100	+
	101	+
	102	+
	103	+
	104	+
	105	+	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.
64	106
65	107
66	108
67	109
68	110
69	111		Report Title:
70	112
71	113		Income Taxation; Important Agricultural Land Qualified Agricultural Cost Tax Credit; HDOA; Extension
72	114
73	115
74	116
75	117		Description:
76	118
77		-	Extends the time that the Department of Agriculture may certify the important agricultural land qualified agricultural ~~cost~~ tax credit from 12/31/2021 to 12/31/2031. ~~Effective 7/1/2050. (SD1)~~
	119	+	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.
78	120
79	121
80	122
81	123
82	124
83	125
84	126
85	127		The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.