HI HB607

Creates an income tax credit for qualified taxpayers who incur transportation costs shipping produce, agricultural goods, and agricultural inputs between Hawaii counties.

Allows farmers, ranchers, food hubs, and broad line distributors to claim a credit equal to a percentage of qualified transportation costs (percentage and maximum credit amount left blank in bill), with unused credits carrying forward up to five years.

Establishes the Department of Agriculture to verify and certify qualified transportation costs, with the Department of Taxation responsible for auditing certifications and administering tax credit claims.

Caps total annual credits at a statewide amount (amount left blank) with separate allocations for farmers/ranchers, food hubs, and broad line distributors; credits issued on a first-come, first-served basis once category limits are reached.

Applies to taxable years beginning after December 31, 2023, with claims required to be filed within 12 months following the close of the taxable year.