REPORT TITLE:
Agriculture; Tax Credits


DESCRIPTION:
Establishes a $500 per acre tax credit for new agricultural uses
of fallow sugar lands and exempting related farm equipment
purchases from the 4% GET for two years.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1631       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE AGRICULTURAL USE OF FALLOW SUGAR LANDS.



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

 1      SECTION 1.  The legislature finds that it is beneficial to
 
 2 Hawaii's economy to encourage agricultural use of fallow sugar
 
 3 lands, and that increased farm activity in Hawaii will cause
 
 4 increased revenues to the State.
 
 5      SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended
 
 6 by adding a new section to be appropriately designated and to
 
 7 read as follows:
 
 8      "§235-    Tax credit for agricultural lands previously used
 
 9 for the production of sugar.  (a)  There shall be allowed for
 
10 each taxpayer subject to the tax imposed by this chapter a tax
 
11 credit for the agricultural use of lands previously used for the
 
12 production of sugar which shall be deductible from the taxpayer's
 
13 net income tax liability, if any, imposed by this chapter for the
 
14 taxable year in which the credit is properly claimed.
 
15      (b)  The amount of the tax credit shall be $500 per acre
 
16 provided that:
 
17      (1)  The land was last used for the production of sugar (the
 
18           last crop on the land was sugar);
 
19      (2)  The land has been fallow for at least two years
 

 
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                                     H.B. NO.1631       
                                                        
                                                        

 
 1           immediately preceding the taxable year in which the tax
 
 2           credit is claimed; and
 
 3      (3)  Crops other than sugar are planted on the land between
 
 4           January 1, 1999 and December 31, 2000.
 
 5      (c)  This tax credit may be carried forward by the taxpayer
 
 6 for a period of up to five years."
 
 7      SECTION 3.  Chapter 237, Hawaii Revised Statutes, is amended
 
 8 by adding a new section to be appropriately designated and to
 
 9 read as follows:
 
10      "§237-    Additional exemptions.  In addition to the amounts
 
11 exempt under section 237-24, this chapter shall not apply to
 
12 amounts received from the sale of farm equipment purchased
 
13 between January 1, 1999 and December 31, 2000, and used in
 
14 connection with the agricultural use of fallow sugar lands."
 
15      SECTION 4.  New statutory material is underscored.
 
16      SECTION 5.  This Act shall take effect upon its approval.    
 
17                           INTRODUCED BY:_________________________
 
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