HI HB2043

Creates an income tax exclusion for farmers in Hawaii equal to the lesser of a specified percentage or dollar amount of gross annual income earned from farming activities.

Defines "farmer" as a person earning more than a specified percentage of their annual gross income from the sale of farm products and value-added farm products they grow, raise, and process.

Defines "farm products" to include crops (vegetables, fruits, flowers, timber, bioenergy crops), livestock (poultry, fish, bees, other animals), and game and fish propagation, but excludes products for personal use.

Intended to strengthen Hawaii's economy by encouraging growth of small, diversified farming businesses and reducing the state's agricultural trade imbalance.

Effective July 1, 2022, and applies to taxable years beginning after December 31, 2021.