If enacted, SB967 will amend Chapter 235 of the Hawaii Revised Statutes by allowing a tax credit for qualified expenses incurred by farmers seeking organic certification. This tax credit can be as high as $25,000 and will be available for all qualified taxpayers, including individuals and entities such as partnerships and S corporations, with an annual cap of $2 million in total credits. The reestablishment of this tax credit addresses previous obstacles faced in its implementation and aims to create a more favorable environment for organic producers to compete against imported products.
Senate Bill 967 introduces the reinstatement of the organic foods production tax credit aimed at supporting Hawaii's organic agriculture industry. The bill acknowledges the challenges faced by small farmers in obtaining costly organic certifications and inspections, which are critical for reducing reliance on agricultural imports and fostering job growth within the state. By easing financial burdens, the legislation intends to promote the growth of locally-grown organic food, further enhancing the sustainability and resilience of food systems in Hawaii.
Notably, the bill comes as a response to the previous organic foods production tax credit established in 2016, which faced resistance from the Hawaii Department of Agriculture. Critics argue that the prior credit was poorly communicated and inadequately supported, leading to a lack of interest from farmers. The department's previous lobbying to repeal this credit and subsequent delays in implementation raised concerns about governmental support for organic farming. Justifying this renewed effort through SB967 reflects a significant legislative commitment to bolster local agriculture while addressing previous shortcomings.