S.B. 478 Summary

• Adds a new income tax exclusion for farmers earning more than a specified percentage of their annual gross income from farming activities in Hawaii

• Excludes the lesser of a designated percentage or dollar amount of gross annual income earned from farming from state income taxation

• Defines "farmer" as a person deriving more than a threshold percentage of annual gross income from the sale of farm products and value-added farm products

• Defines "farm products" to include crops (vegetables, fruits, flowers, timber, bioenergy crops), livestock and aquaculture (poultry, bees, fish), and game and fish propagation, excluding personal use products

• Takes effect July 1, 2050 and applies to taxable years beginning after December 31, 2020