HI HB1689

Establishes an income tax credit for farmers, ranchers, and producers obtaining organic certification, with expenses up to a maximum of $50,000 per taxpayer per year.

Limits total credits to $2,000,000 annually across all qualified taxpayers; unused credits due to the cap carry forward to the next taxable year.

Defines qualified expenses as costs for organic certification from USDA, including application fees, inspection costs, equipment, materials, certified organic seed, and cover crops under the National Organic Program.

Restricts eligibility to producers with gross income from organic agricultural products not exceeding $500,000 in the most recent fiscal year.

Requires the Department of Agriculture to certify qualified expenses and issue certificates to taxpayers, and sunsets the credit on December 31, 2021.