S.B. 1316 Summary

• Establishes an agricultural production tax credit for qualified taxpayers subject to Hawaii income tax, deductible from net income tax liability for the taxable year claimed.

• Defines qualified taxpayers as agricultural producers who produce at least fifty percent of food crops for local consumption.

• Requires qualified taxpayers to submit written, certified statements to the board of agriculture by March 31 each year identifying qualified expenses incurred and tax credits claimed.

• Assigns the board of agriculture to verify and certify qualified expenses, maintain taxpayer records, and issue certificates to taxpayers for filing with tax returns; permits the board to assess fees to offset certification costs.

• Allows excess tax credits exceeding net income tax liability to be carried forward to subsequent years until exhausted, with all credit claims required to be filed within twelve months of the close of the taxable year.