STAND. COM. REP. NO. 2607

Honolulu, Hawaii

RE: S.B. No. 1315

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 1315 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a food manufacturer tax credit and define qualified taxpayers as manufacturers that produce value-added products using local crops.

Your Committee received testimony in support of this measure from the Hawaii Food Manufacturers Association; Ulupono Initiative; Hawaiian Chip Company; Carpenter & Carpenter, Inc.; Hawaii Cattlemen's Council, Inc.; Hawaii Food Industry Association; and one individual. Your Committee received comments on this measure from the Department of Budget and Finance, Department of Taxation, Department of Agriculture, Department of the Attorney General, and Tax Foundation of Hawaii.

Your Committee finds that the State has a goal to double local food production by 2030. One barrier to that goal is that there is little access to capital for food manufacturing and few incentives for investment in Hawaii's food manufacturing industry. This measure incentivizes investment in local food production by establishing a food manufacturer tax credit.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1315 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair