STAND. COM. REP. NO. 3051

Honolulu, Hawaii

RE: S.B. No. 2705

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2705 entitled:

"A BILL FOR AN ACT RELATING TO THE IMPORTANT AGRICULTURAL LAND QUALIFIED AGRICULTURAL COST TAX CREDIT,"

begs leave to report as follows:

The purpose and intent of this measure is to extend the important agricultural land qualified agricultural cost tax credit that will expire at the end of the 2021 tax year.

Your Committee received written comments in support of this measure from the Department of Agriculture, Department of Planning and Permitting of the City and County of Honolulu, Office of Planning, Land Use Research Foundation of Hawaii, Hawaii Farm Bureau, Ulupono Initiative, Kamehameha Schools, Agribusiness Development Corporation, and one individual.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that extending the important agricultural land qualified agricultural cost tax credit will encourage farmers to continue making investments in their lands, thereby increasing agricultural efficiency and contributing to the State's goal of food self-sufficiency.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 2705, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2705, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair