HB 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.

• Tax exemption applies to taro plants, taro corms, leaves, hulls, taro lands (including fallow rotation lands), and preparations of taro, poi, and value-added products made exclusively with Hawaii-grown taro.

• Exemption automatically expires if the total amount of land used for locally-grown taro in Hawaii surpasses 30,000 acres at any time during the year, as determined by the Department of Agriculture.

• Applies to taxable years beginning after December 31, 2020.

• Intended to create economic incentives for new taro farmers, improve livelihoods of existing taro farmers, reduce poi costs for local families, and support Hawaii's food security and cultural goals.