HB 607 Summary

• Establishes an income tax credit for qualified taxpayers (farmers, ranchers, food hubs, and broad line distributors) who incur costs transporting agricultural goods and inputs between Hawaii counties.

• Credit amount equals a specified percentage of qualified transportation costs up to a maximum per-taxpayer limit, with costs including air freight, ocean freight, and land freight.

• Department of Agriculture verifies and certifies qualified transportation costs; taxpayers must file certification with their tax returns; excess credits may carry forward for up to five years.

• Annual credit cap is divided among three categories: farmers/ranchers, food hubs, and broad line distributors, with credits certified on first-come, first-served basis.

• Effective June 30, 3000, applying to taxable years beginning after December 31, 2023.