HI HB2117

Creates an income tax exclusion for farmers earning more than 75% of their annual gross income from farm products sold within Hawaii, with a specified dollar limit on the exclusion amount.

Limits the tax exclusion to farmers whose annual gross income does not exceed a specified threshold amount.

Adds this farmer income exclusion as a new paragraph (15) to section 235-7(a) of the Hawaii Revised Statutes, which lists income excluded from gross income, adjusted gross income, and taxable income.

Applies to taxable years beginning after January 20, 2050, and provides that the amendment shall survive the reenactment of section 235-7 scheduled for January 1, 2018.

Intended to support economic diversification and address Hawaii's agricultural trade imbalance by encouraging growth of small, diversified farming businesses through partial income tax relief.