HI HB961

Excludes a specified amount of income from state income tax for farmers whose annual gross income does not exceed defined thresholds based on filing status.

Defines "farmer" as an individual earning more than 75% of annual gross income from food or value-added food products grown or raised by that individual.

Applies different income exclusion limits for single taxpayers, married filing jointly, married filing separately, and head of household filers (specific dollar amounts left blank in bill text).

Effective for taxable years beginning after December 31, 2017, with intent to encourage and diversify Hawaii's local agricultural economy and reduce agricultural trade imbalances.

Designed to support small, diversified farming businesses as part of broader economic diversification strategy addressing Hawaii's reliance on tourism and military expenditures.