HI HB1261

Amends the important agricultural land qualified agricultural cost tax credit in Hawaii Revised Statutes section 235-110.93 to allow an additional 15% tax credit for expenditures on drought mitigation projects that provide water to important agricultural lands.

Drought mitigation project expenses eligible for the additional credit include storm water capture expansion, groundwater infiltration improvements, water retention practices like terracing, and water delivery system expansion, along with associated engineering and permit costs.

The additional drought mitigation credit cannot exceed 15% of the base credit amount received under the existing tax credit program.

Removes a reference to the irrigation repair and maintenance special fund under section 167-24 that previously reduced eligible qualified agricultural costs.

Appropriates unspecified sums from general revenues to the departments of agriculture and taxation for fiscal year 2013-2014 to implement staffing and consulting expenses necessary for the expanded tax credits.