| 47 | | - | SECTION 1. Act 151, Session Laws of Hawaii 2019, is amended by amending sections 1 and 2 to read as follows: "SECTION 1. The legislature finds that Hawaii has not developed a plan to transition its agriculture industry, once dominated by sugar and pineapple, to an industry that is beneficial for diversified food crops. While diversified agriculture has increased, industry experts estimate that Hawaii imports approximately eighty-five to ninety per cent of the food that it consumes. According to a report issued in October 2012 by the office of planning in cooperation with the department of agriculture, entitled "Increased Food Security and Food Self-Sufficiency Strategy: A State Strategic/Functional Plan Prepared in Accordance with HRS Chapter 226 Hawaii State Plan and the Hawaii Comprehensive Economic Development Strategy", replacing just ten per cent of the food that Hawaii currently imports would retain approximately $313,000,000 in the State and generate more than two thousand three hundred jobs. Investing in farmland and irrigation infrastructure will bring Hawaii closer to self-sufficiency, and local investments will benefit local residents. The legislature further finds that the governor has set the policy goal of doubling Hawaii's food production by 2020. However, details on how to achieve this objective have yet to be identified. Issues such as preserving agricultural land, identifying food crops for local production, and improving irrigation and agricultural infrastructure need immediate attention so that doubling food production can become a realistic objective. Implications of the federal FDA Food Safety Modernization Act, which will have significant effects on local agriculture, must also be addressed. Due to the need to address multiple issues in order to double local food production and with 2020 less than one year away, this Act sets the goal of doubling local food production by 2030. The purpose of this Act is to require the department of agriculture, in cooperation with the office of the governor, to develop a strategic plan to achieve the governor's goal of doubling food production and increasing food exports by 2030[.] and to identify the top ten fruit and vegetable imports to the State that may be commercially grown by farmers in Hawaii and recommend ways to increase their production. SECTION 2. (a) The department of agriculture, in cooperation with the office of the governor, shall establish a strategic plan that identifies benchmarks for increased food production in Hawaii and increased exports of food crops and value-added agricultural products from Hawaii. (b) The strategic plan shall identify benchmarks that are quantitatively and qualitatively measurable and the metrics to determine progress toward the following goals: (1) Doubling local food production and exports by 2030; (2) Identifying food crops that may be grown locally to replace imports and increase exports of food crops and value-added agricultural products from Hawaii; (3) Identifying lands for: (A) Producing food crops that may be grown locally to replace imports; (B) Raising livestock; and (C) Developing value-added agricultural products; (4) Developing guidance for decisions regarding land acquisition, irrigation, and agricultural infrastructure; and (5) Identifying implications and effects of the federal FDA Food Safety and Modernization Act on local food production and export. (c) The department of agriculture shall submit the strategic plan, including proposed strategies, benchmarks, metrics, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2020. (d) The department of agriculture, in cooperation with the office of the governor, shall build off the findings related to subsection (b)(2) and further identify the top ten fruit and vegetable imports to the State that may be commercially grown by farmers in Hawaii, along with recommendations to increase the commercial production of those fruits and vegetables in the State. The department of agriculture shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023." SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 3. This Act shall take effect on July 1, 2050. |
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| 47 | + | 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. |
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| 87 | | - | Report Title: Agricultural Import Replacements; Top Ten Fruits and Vegetables Description: Requires the department of agriculture, in cooperation with the office of the governor, to identify the top ten fruit and vegetable imports to the State that may be commercially grown by farmers in Hawaii and recommend ways to increase their production. Effective 7/1/2050. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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| 87 | + | (3) The amount, if any, of any grant provided to the taxpayer under section 141-10. |
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| 88 | + | |
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| 89 | + | (f) The department of agriculture shall: |
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| 90 | + | |
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| 91 | + | (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; |
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| 92 | + | |
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| 93 | + | (2) Verify the nature and amount of the qualified expenses; |
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| 94 | + | |
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| 95 | + | (3) Total all qualified and cumulative expenses that the department certifies; and |
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| 96 | + | |
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| 97 | + | (4) Certify the amount of the tax credit for each taxpayer of each taxable year and the cumulative amount of the tax credit. |
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| 98 | + | |
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| 99 | + | 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: |
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| 100 | + | |
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| 101 | + | (1) Amounts of qualified expenses; |
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| 102 | + | |
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| 103 | + | (2) The credit amount certified for the taxpayer for each taxable year; and |
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| 104 | + | |
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| 105 | + | (3) The cumulative amount of tax credits certified. |
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| 106 | + | |
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| 107 | + | The qualified taxpayer shall file the certificate with the qualified taxpayer's tax return with the department of taxation. |
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| 108 | + | |
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| 109 | + | The board of agriculture may assess and collect a fee to offset the costs of certifying tax credit claims under this section. |
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| 110 | + | |
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| 111 | + | (g) The director of taxation: |
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| 112 | + | |
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| 113 | + | (1) Shall prepare any forms that may be necessary to claim a tax credit under this section; |
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| 114 | + | |
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| 115 | + | (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 |
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| 116 | + | |
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| 117 | + | (3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section. |
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| 118 | + | |
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| 119 | + | (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. |
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| 120 | + | |
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| 121 | + | (i) As used in this section: |
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| 122 | + | |
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| 123 | + | "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. |
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| 124 | + | |
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| 125 | + | "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. |
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| 126 | + | |
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| 127 | + | "Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter. |
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| 128 | + | |
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| 129 | + | "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. |
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| 130 | + | |
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| 131 | + | "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." |
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| 132 | + | |
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| 133 | + | SECTION 3. New statutory material is underscored. |
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| 134 | + | |
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| 135 | + | 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. |
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| 136 | + | |
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| 137 | + | 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. |
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| 138 | + | |
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| 139 | + | |
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