The introduction of the food manufacturer tax credit is intended to remove significant barriers that have hindered private investment in agriculture in Hawaii. According to the Hawaii Department of Business, Economic Development, and Tourism, if Hawaii were to replace just ten percent of its food imports, it could generate around $313 million in new revenues for the state's agricultural sector. This economic boost could lead to increased sales, profit earnings, tax revenues, and thousands of jobs, further enhancing the state's economic outlook.
House Bill 947 aims to establish a food manufacturer tax credit to support the development of agricultural self-sufficiency and food security in Hawaii. The bill addresses the pressing issue of Hawaii's heavy reliance on food imports, which currently stands at approximately 85 to 90 percent. With a vision to double food production by 2030, this bill seeks to incentivize local agricultural production through financial support for food manufacturers. By encouraging investment in food production, lawmakers hope to provide abundant, affordable food and create lucrative jobs in the agricultural sector.
Although the bill presents prospective benefits, potential points of contention could arise regarding the specifics of the tax credit provisions and their implementation. The details regarding the maximum amount of the tax credit, as well as the qualification criteria for taxpayers, remain undefined in the text. This lack of clarity may lead to debates over the adequacy of provisions to genuinely stimulate growth in the agricultural sector versus merely serving as a financial incentive without significant impact.