STAND. COM. REP. NO. 1442

Honolulu, Hawaii

, 2025

RE: S.B. No. 328

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.B. No. 328, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish an income tax credit for capital infrastructure costs incurred in the conversion of a dairy farm to a hog farm.

Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Hawaiʻi Farm Bureau; and Hawaiʻi Food+ Policy. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that revitalizing Hawaii's agricultural sector through strategic investments in farm infrastructure will strengthen the local economy, support food security, and promote sustainable farming practices. By providing financial incentives for dairy farm retrofits, this measure will encourage the modernization of facilities, enhance operational efficiency, and reduce financial barriers for agricultural businesses to transition to hog farming and increase local pork production.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 328, S.D. 1, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair