To achieve its objectives, SB369 proposes establishing a refundable income tax credit for qualified taxpayers engaged in enhancing the resiliency of the food supply chain. This tax credit is set at 40% of qualified expenses, with an overall cap of $2 million on the total amount of credits available per taxable year. Additionally, the bill requires the Department of Business, Economic Development, and Tourism (DBEDT) to implement expedited permitting processes for various food and beverage supply chain projects. The goal is to reduce regulatory hurdles that currently inhibit local businesses from scaling and meeting demand.
Senate Bill 369 aims to enhance the resiliency of Hawaii's food and beverage supply chain in response to the state's unique geographic vulnerabilities, which expose it to the impacts of natural disasters. It recognizes that Hawaii's reliance on centralized supply chains can leave residents vulnerable during emergencies, such as hurricanes or tsunamis. The bill emphasizes the importance of expanding local food production and storage capacity to reduce food insecurity and ensure access to essential supplies during crises. This initiative is particularly significant given that one-third of Hawaii's residents currently experience food insecurity.
Key points of contention surrounding SB369 include the concerns about tax implications on state revenues and whether the tax credit adequately addresses the challenges faced by small businesses. Supporters argue that this financial incentive will encourage local businesses to invest in infrastructure and operations, thus strengthening food resilience. Conversely, critics may voice concerning about the feasibility of the proposed permitting process and whether it will effectively alleviate existing barriers in a timely manner. The balance between promoting local production and ensuring regulatory compliance will likely be a topic of ongoing discussion as the bill progresses.