This tax credit intends to incentivize the retention of farm employees by providing financial relief to farm employers. It is particularly directed toward sustaining the agricultural workforce during challenging economic times. Furthermore, the legislation establishes criteria defining eligible farm employees, which includes individuals who work a minimum of five hundred hours per year for a farm employer. This measure signifies a strategic effort to bolster the agricultural sector in Hawaii.
Summary
House Bill 610 establishes a farm workforce retention tax credit aimed at benefiting farm employers or owners of farm employers in Hawaii. The bill allows qualified taxpayers to claim this tax credit against their net income tax liability for the taxable year, provided they employ eligible farm employees. The credit amount varies annually, starting from taxable years subsequent to December 31, 2023, but specific numeric values for the tax credit amount are yet to be defined.
Contention
While proponents of HB 610 argue that the tax credit is crucial for supporting farms and ensuring employment stability, potential concerns include the bill's long-term viability, given its effective date set for 3000, and the ambiguous amount of the tax credit outlined for subsequent years. There may also be debate regarding the determination of what qualifies as a farm employer and the impact of the credit's provisions on smaller farms and businesses that may struggle to meet the qualifications necessary to claim the credit.