STAND. COM. REP. NO. 3438
RE: H.B. No. 2277
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Agriculture and Environment, to which was referred H.B. No. 2277, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE IMPORTANT AGRICULTURAL LAND QUALIFIED AGRICULTURAL COST TAX CREDIT,"
begs leave to report as follows:
The purpose and intent of this measure is to extend through the 2030 tax year, the important agricultural land qualified agricultural cost tax credit, which currently expires at the end of the 2021 tax year.
Your Committee received testimony in support of this measure from the Department of Taxation, Department of Agriculture, Office of Planning, Agribusiness Development Corporation, City and County of Honolulu Department of Planning and Permitting, Land Use Research Foundation of Hawaii, Kamehameha Schools, Ulupono Initiative, and Hawaii Farm Bureau.
Your Committee finds that two of the four counties have yet to complete the mapping of their potential important agricultural lands, which is statutorily required for qualifying landowners and farmers to receive credit for important and innovative improvements to their farmlands. According to testimony received by your Committee, extending the tax credit will allow qualifying owners to receive credits for costs such as roads and utilities, agricultural housing, feasibility studies, and equipment. This measure will further encourage Hawaii's farmers to continue to work the land and help obtain our State goal of food self-sufficiency.
Your Committee has amended this measure by inserting an effective date of July 1, 2020.
As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2277, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2277, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,
MIKE GABBARD, Chair