Relating To The Aquaculture Investment Tax Credit.
Impact
If enacted, SB3238 will amend Chapter 235 of the Hawaii Revised Statutes by adding a new section that delineates the specifics of the aquaculture investment tax credit. This new provision will provide a financial incentive for taxpayers investing in businesses that are involved in the propagation, cultivation, or farming of aquatic plants and animals in controlled environments. By offering a structured tax credit over several years, the bill aims to boost investment within the local aquaculture industry, positioning Hawaii to capitalize on its unique aquatic resources and contribute to food sovereignty.
Summary
Senate Bill 3238 proposes the establishment of an aquaculture investment tax credit in the state of Hawaii. This tax credit will be available to taxpayers who make investments in qualified aquaculture businesses. The bill aims to promote growth and sustainability within the aquaculture sector by allowing investors to deduct a percentage of their investments from their net income tax liability for five years following their investment. The intention behind this bill is to stimulate the aquaculture industry, encourage local food production, and enhance the state’s economy through investment in its natural resources.
Contention
While supporters of SB3238 argue that it will significantly benefit Hawaii's aquaculture sector by providing necessary financial support, some stakeholders might voice concerns regarding the feasibility of tracking investments and ensuring the intended benefits are realized. There may also be debates surrounding the level of tax credit allocated, as well as considerations of how this legislation aligns with broader environmental and economic strategies in the state. As with any financial incentive program, scrutiny regarding the effectiveness and monitoring of the tax credits will likely be at the forefront of discussions.