HB 499 Summary

• Establishes a refundable income tax credit equal to 40% of qualified food and beverage supply chain costs, with a maximum annual cap of $2,000,000 total across all qualified taxpayers.

• Reserves at least 25% of annual tax credits for small-scale producers and community-based organizations.

• Eligible taxpayers include farmers, ranchers, food processors, distributors, retailers, food banks, and other entities involved in Hawaii's food and beverage supply chain.

• Requires Department of Business, Economic Development, and Tourism to establish expedited permitting processes for food storage facilities, processing facilities, and agricultural infrastructure, with approvals within 180 days of submission.

• Applies to taxable years beginning after December 31, 2025; becomes effective July 1, 3000.