HI HB612

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

Credits equal 15% of net farm income for taxpayers with less than $250,000 in annual farm income, and 10% for those with $250,000 to $1,000,000 in farm income.

Qualifies taxpayers who derive at least two-thirds of their gross income from farming, ranching (Schedule F), or fishing (Schedule C) activities.

Allows excess credits to carry forward to subsequent tax years, with all credit claims required to be filed within 12 months after the close of the taxable year or be forfeited.

Applies to taxable years beginning after December 31, 2023, with the director of taxation authorized to establish forms, request verification documentation, and adopt implementing rules.