STAND. COM. REP. NO. 747

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 783

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 783, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the important agricultural land qualified agricultural cost tax credit.

 

     More specifically, this measure:

 

     (1)  Repeals the provision that makes the claiming of the important agricultural land qualified agricultural cost tax credit contingent upon the repeal, exhaustion, or expiration of the tax credit for the aquarium and marine science and mammal research facility at Ko Olina Resort and the training and educational facilities at Makaha Resort;

 

     (2)  Expands the definition of "qualified agricultural costs" to include expenditures for the clearing of, removal of trees and debris from, and soil restoration to correct any nutrient deficiency that is present on, former sugar and pineapple plantation lands; and

 

     (3)  Repeals the provision that requires the Department of Agriculture to cease certifying credits after 2017.

 

     Your Committee received written comments in support of this measure from one individual.

 

     Your Committee received written comments on this measure from the Department of Agriculture and Department of Taxation.

 

     Your Committee finds that Act 233, Session Laws of Hawaii 2008, established a variety of incentives and protections to establish and sustain viable agricultural operations on important agricultural lands.  Your Committee also finds that many former sugar and pineapple plantation lands have become overgrown and that clearing out these lands and restoring the soil can be very costly to farmers who wish to return the land to agricultural use.  Your Committee further finds that this measure is intended to assist these farmers, while building upon the incentives established by Act 233.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that the expanded definition of "qualified agricultural costs" applies to former sugar and pineapple plantation lands that have been out of agricultural use for more than five years and are to be used primarily for agricultural purposes;

 

     (2)  Making a correction to accurately reflect the text format of section 235-110.93, Hawaii Revised Statutes; and

 

     (3)  Making the Act apply to taxable years beginning after December 31, 2017.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 783, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 783, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair