HOUSE OF REPRESENTATIVES

H.B. NO.

1563

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to important agricultural land.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 235-110.93, Hawaii Revised Statutes, is amended by amending subsection (k) to read as follows:

     "(k)  As used in this section:

     "Agricultural business" means any person with a commercial agricultural, silvicultural, or aquacultural facility or operation, including:

     (1)  The care and production of livestock and livestock products, poultry and poultry products, apiary products, and plant and animal production for nonfood uses;

     (2)  The planting, cultivating, harvesting, and processing of crops; and

     (3)  The farming or ranching of any plant or animal species in a controlled salt, brackish, or freshwater environment;

provided that the principal place of the agricultural business is maintained in the State and more than fifty per cent of the land the agricultural business owns or leases, excluding land classified as conservation land, is important agricultural land.

     "Important agricultural lands" means lands identified and designated as important agricultural lands pursuant to part III of chapter 205.

     "Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

     "Qualified agricultural costs" means expenditures for:

     (1)  The plans, design, engineering, construction, renovation, repair, maintenance, and equipment for:

         (A)  Roads or utilities, primarily for agricultural purposes, where the majority of the lands serviced by the roads or utilities, excluding lands classified as conservation lands, are important agricultural lands;

         (B)  Agricultural processing facilities in the State, primarily for agricultural purposes, where the majority of the crops or livestock processed, harvested, treated, washed, handled, or packaged are from agricultural businesses;

         (C)  Water wells, reservoirs, dams, water storage facilities, water pipelines, ditches, or irrigation systems in the State, primarily for agricultural purposes, providing water for lands, the majority of which, excluding lands classified as conservation lands, are important agricultural lands; and

         (D)  Agricultural housing in the State, exclusively for agricultural purposes; provided that:

              (i)  The housing units are occupied solely by farmers or employees for agricultural businesses and their immediate family members;

             (ii)  The housing units are owned by the agricultural business;

            (iii)  The housing units are in the general vicinity, as determined by the department of agriculture, of agricultural lands owned or leased by the agricultural business; and

             (iv)  The housing units conform to any other conditions that may be required by the department of agriculture;

     (2)  Feasibility studies, regulatory processing, and legal and accounting services related to the items under paragraph (1); and

     (3)  Equipment, primarily for agricultural purposes, used to cultivate, grow, harvest, or process agricultural products by an agricultural business[; and

     (4)  Regulatory processing, studies, and legal and other consultant services related to obtaining or retaining sufficient water for agricultural activities and retaining the right to farm on lands identified as important agricultural lands]."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Important Agricultural Land; Tax Credit; Qualified Agricultural Costs

 

Description:

Repeals the ability to claim expenditures for regulatory processing, studies, and legal and other consultant services under the important agricultural land qualified agricultural cost tax credit.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.