STAND. COM. REP. NO.  337

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 572

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 572 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to amend the Important Agricultural Land Qualified Agricultural Cost Tax Credit by:

     (1)  Removing provisions that established a limited time period in which the Credit may be claimed; and

     (2)  Including the costs of clearing, removing trees and debris from, and soil restoration of former sugar or pineapple plantation land that has been unused for at least five years as a qualifying cost to claim the Credit.

Your Committee received testimony in support of this measure from the Hawaii Farm Bureau and an individual.  Your Committee received testimony in support of the intent of this measure from the Department of Agriculture and an individual.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 31, 2150; and

     (2)  Making technical nonsubstantive amendments for the purpose of clarity and consistency.

     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. 572, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 572, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

RICHARD P. CREAGAN, Chair