HI HB1394

Establishes an income tax credit equal to 10% of the value of water that percolates into groundwater aquifers on qualifying properties maintained by taxpayers.

Doubles the tax credit rate for operations using reclaimed/gray/brackish water, those in drought-affected areas, or certified organic agricultural operations.

Limits the credit to properties of at least 5 acres operated for agricultural or recreational purposes that maintain permeable surfaces with infiltration rates exceeding 0.1 feet per day.

Allows taxpayers to deduct the costs paid for organic agricultural certification or professional determination of a property's net water infiltration when claiming the credit.

Requires annual certification by the Department of Land and Natural Resources based on verification by qualified professionals (geologists, hydrologists, soil agronomists), with certificates filed with tax returns; applies to taxable years beginning after December 31, 2012.