HB 1383 Summary

• Establishes an agricultural import replacement task force within the Department of Agriculture to identify the top ten fruits and vegetables imported into Hawaii that could be commercially grown in-state.

• Task force membership includes representatives from the Department of Agriculture, University of Hawaii, Department of Education, county economic development offices, and invited representatives from the Hawaii Farm Bureau and Hawaii Farmers Union United.

• Task force must submit findings and recommendations to the legislature by December 1, 2024, and dissolves on June 30, 2025.

• Creates a new income tax credit for qualified taxpayers engaged in growing agricultural import replacements, with a maximum credit of $5,000,000 total per taxable year and individual taxpayer limits to be filled in.

• Department of Agriculture certifies qualified expenses and tax credits; taxpayers must file certified statements annually by March 31 and submit certificates with tax returns to claim the credit, which can carry forward to subsequent years if it exceeds annual tax liability.