Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred S.B. No. 624 entitled:

begs leave to report as follows:

The purpose of this measure is to allow an income tax credit for farmers and ranchers for investment in agricultural water storage facilities.

Your Committee received testimony in favor of this measure from the Hawaii Farm Bureau Federation, Hawaii Agriculture Research Center, Maui County Farm Bureau, Kauai County Farm Bureau, Pineapple Growers Association of Hawaii, Maui Farmers' Cooperative Exchange, Big Island Farm Bureau, and Maui Cattlemen's Association. The Department of Agriculture deferred to the testimony of the Department of Taxation in opposition to this measure. Comments on this measure were received from the Tax Foundation of Hawaii.

Your Committee finds that incentives are needed to encourage farmers and ranchers to provide water infrastructure solutions. The tax credit provided by this measure will stimulate development of reliable and efficient water sources to be used during water shortages.

As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 624 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.