STAND. COM. REP. NO. 926

Honolulu, Hawaii

, 2005

RE: H.B. No. 483

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 483 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this bill is to promote agricultural diversity and improve agricultural self-sufficiency by establishing a nonrefundable Agricultural Infrastructure Improvement Tax Credit (Tax Credit) in an amount equal to the agricultural infrastructure improvement costs incurred by a taxpayer, and capped at $2,000,000 in the aggregate for all taxpayers for each taxable year.

A member of the Maui County Council, Hawaii Farm Bureau Federation, Big Island Farm Bureau, and Land Use Research Foundation of Hawaii supported this bill. The Department of Agriculture supported the intent of this measure. The Department of Taxation opposed this bill. The Hawaii Agriculture Research Center and Tax Foundation of Hawaii offered comments.

Your Committee has amended this bill by:

(1) Expanding the definition of "agricultural infrastructure improvement" to include improvements made to supporting infrastructure used on land encumbered by a permanent conservation easement for agricultural protection;

(2) Changing the effective date to July 1, 2010, and making the Tax Credit applicable to taxable years beginning after December 31, 2009, to promote further discussion;

(3) Inserting a repeal date of July 1, 2010; and

(4) Making technical, nonsubstantive amendments for style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 483, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 483, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT TAKAMINE, Chair