HB 612 Summary

• Establishes an income tax credit for qualified farmers, ranchers, and fishers in Hawaii to reduce production costs and support agricultural growth.

• Provides a 15% tax credit on net farm income for qualified taxpayers with less than $250,000 in net farm income, and a 10% credit for those with $250,000 to less than $1,000,000 in net farm income.

• Defines "qualified taxpayer" as one deriving at least two-thirds of excess federal gross income from farming, ranching (Schedule F), or fishing (Schedule C) activities.

• Allows excess tax credits to be carried forward to subsequent taxable years until exhausted, with all claims required to be filed within 12 months of the taxable year end.

• Takes effect June 30, 3000, and applies to taxable years beginning after December 31, 2023.