HI SB3031

Clarifies the organic foods production tax credit is limited to $50,000 per qualified taxpayer per taxable year.

Changes the $2,000,000 annual cap allocation method: when total applications exceed $2,000,000, all eligible taxpayers receive credits on a pro rata basis (calculated by dividing $2,000,000 by total qualified expenses, then multiplying by each taxpayer's expenses), rather than some taxpayers being denied credits entirely.

Removes the authorization for the board of agriculture to assess and collect fees to offset certification costs.

Narrows "qualified expenses" to focus on certification-related costs (applications, inspections, fees, equipment/materials for certification) rather than general agricultural production expenses, excluding amounts refunded by USDA cost-share programs.

Restricts eligibility to individual producers (not handlers or handling operations) whose gross income from organic agricultural sales does not exceed $500,000 in the most recent fiscal year.