HI HB230

Establishes an agricultural food safety compliance income tax credit for agricultural businesses that lose income from taking land out of production to comply with federal food safety requirements, including the Food Safety Modernization Act.

Credit amounts decrease over three years: 25% of qualified compliance costs in year one, 15% in year two, and 10% in year three, with dollar amount caps for each year (amounts not specified in bill).

Taxpayers may claim the credit in any taxable year after incurring qualified compliance costs, in consecutive or nonconsecutive years until the credit is exhausted, and any excess credit over tax liability shall be refunded.

Department of Agriculture certifies qualified compliance costs and credit amounts on a first-come, first-served basis, with an annual aggregate cap per taxable year (amount not specified); Department of Taxation administers the credit and may audit certificates.

Applies to taxable years beginning after December 31, 2016, with the Department of Agriculture ceasing to certify new credits after the fourth taxable year following initial claims, though taxpayers may continue claiming accumulated certified credits.