H.B. 694 Summary

• Exempts persons engaged in taro cultivation and production of value-added taro products from Hawaii state income tax on the first $100,000 of gross income per individual, farm, poi mill, or business.

• Exempts from taxation taro plants, corms, leaves, huli (shoots), taro lands in active production and fallow rotation, and preparations of taro and value-added products made exclusively from locally-grown taro.

• Exemption applies to taxable years beginning after December 31, 2020.

• Exemption terminates if total locally-grown taro acreage in Hawaii exceeds 30,000 acres at any time during the year, as determined by the Department of Agriculture.

• Intended to support food security, improve taro farmer livelihoods, reduce poi costs for families, and advance Hawaii's goal to double food production by 2030.