STAND. COM. REP. NO. 2882

Honolulu, Hawaii

RE:    H.B. No. 2464

       H.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Agriculture, to which was referred H.B. No. 2464, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDITS,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the amount of the important agricultural land qualified agricultural cost tax credit in certain situations.  

     Your Committee received testimony in support of this measure from Alexander & Baldwin, Inc.; The Chamber of Commerce Hawaii; and Hawaii Farm Bureau Federation.  Your Committee received comments on this measure from the Department of Agriculture, Department of Taxation, and Tax Foundation of Hawaii.

     The important agricultural land qualified agricultural cost tax credit was enacted to incentivize landowners to designate agricultural lands as important agricultural lands.  Since the credit's enactment, 101,000 acres have been designated as important agricultural lands in Hawaii.  Your Committee concludes that increasing the tax credit will incentivize more landowners to designate their lands as important agricultural lands, which will increase the State's agricultural sustainability.

     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 H.B. No. 2464, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

CLARENCE K. NISHIHARA, Chair