HI SB2887

Establishes a nonrefundable income tax credit for qualified agricultural investment costs incurred on Hawaiian home lands, applicable to taxable years beginning after December 31, 2026

Eligible taxpayers must hold a valid lease, license, or right-of-entry from the Department of Hawaiian Home Lands and conduct agricultural activities on lands designated for subsistence agriculture, supplemental agriculture, or pastoral use

Qualified costs include agricultural infrastructure (roads, irrigation systems, water storage, processing facilities), cultivation and harvesting equipment, regulatory and consulting services, and planting of orchard crops

Includes costs for clearing former sugar or pineapple plantation lands that have been out of agricultural use for more than five years to restore them to productive use

Excess credits that cannot reduce tax liability below zero may be carried forward to subsequent taxable years until exhausted; specific credit percentage and maximum amounts are left blank in the bill