HI HB627

Establishes two new sections (205-A and 205-B) in Chapter 205, Hawaii Revised Statutes, to create tax credits for qualified agricultural processing facilities located in agricultural districts.

Defines eligibility requirements for businesses to qualify as agricultural processing facilities, including operating within an agricultural district, deriving at least 50% of gross receipts from processing agricultural products grown within the same county, and either increasing full-time employees by at least 10% annually or increasing gross sales by at least 2% per year.

Provides graduated tax credits against state taxes ranging from 80% in the first year down to 20% in the seventh year and beyond, with credits continuing for an additional three years at 20% of taxes due.

Allows qualified facilities an additional tax credit equal to 80% of unemployment insurance taxes paid in year one, declining to 20% by year seven and continuing at 20% for three subsequent years.

Takes effect on July 1, 2020.