SB1633 SD1

PART I

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Green building tax credit. (a) Each individual or corporate taxpayer that files an individual or corporate net income tax return for a taxable year may claim a green building tax credit under this section against the Hawaii state individual or corporate net income tax.

(b) The green building tax credit shall be equal to thirty per cent of the taxpayer's actual costs incurred in connection with the construction of any primary structure made with at least thirty per cent Hawaii-grown hemp material.

(1) Maintain records of the names and addresses of the taxpayers claiming the credits under this section and the total amount of the taxpayer's actual costs upon which the tax credits are based;

(2) Verify the nature and amount of the taxpayer's actual costs;

(3) Total all individual and cumulative actual costs that the board certifies; and

(4) Certify the amount of the tax credit for each taxpayer for each taxable year and the cumulative amount of the tax credit.

Upon each determination made under this subsection, the board of agriculture shall issue a certificate to the taxpayer verifying information submitted to the board of agriculture, including amounts of taxpayers' actual costs, the credit amount certified for the taxpayer for each taxable year, and the cumulative amount of tax credits certified. The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation.

(d) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.

(e) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(f) As used in this section:

"Hemp" means the stalks and foliage material of the hemp plant.

"Primary structure" means a building or residence."

SECTION 2. Chapter 328G, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§328G-A Edible cannabinoid products; tetrahydrocannabinol limits; packaging. (a) Notwithstanding section 328G-3(e), any hemp processor with a permit pursuant to section 328G-2 may sell, hold, offer, or distribute for sale an edible or beverage cannabinoid product that contains a tetrahydrocannabinol concentration of not more than 2.5 milligrams per serving and not more than twenty-five servings per package, as is standard within the industry.

(b) No person shall sell, hold, offer, or distribute for sale an edible or beverage cannabinoid product:

(1) To any person less than twenty-one years of age; or

(2) In packaging that is:

(A) Not child-proof or child-resistant;

(B) Marketed towards or attractive to children; and

(C) Not clearly labeled with a warning stating that the product is not intended for consumption or sale to any person less than twenty-one years of age.

§328G-B Tetrahydrocannabinol limits in legacy cannabinoid products. Notwithstanding any other law to the contrary, a non‑edible legacy cannabinoid product or manufactured hemp product shall not be subject to any restrictions except for the federal definition of hemp and the corresponding 0.3 per cent tetrahydrocannabinol concentration limit, as defined by the United States Food and Drug Administration pursuant to title 7 United States Code section 1639o."

SECTION 3. Section 328G-1, Hawaii Revised Statutes, is amended as follows:

1. By adding three new definitions to be appropriately inserted and to read:

""Beverage" has the same meaning as defined in section 339‑1.

"Edible" has the same meaning as "food" as defined in section 328-1.

"Foliage material" means the aggregate of leaves, stems, and residual floral material of the hemp plant."

2. By amending the definition of "hemp biomass" to read:

""Hemp biomass" means the [~~leaf and floral parts~~] stalks and foliage material of the hemp plant [~~material~~]."

SECTION 4. Section 328G-3, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) [No] Except as provided for in section 328G-A, no person shall sell, hold, offer, or distribute for sale any food, as that term is defined in section 328-1, into which a cannabinoid, artificially derived cannabinoid, synthetic cannabinoid, hemp, hemp biomass, or manufactured hemp product that has been added as an ingredient or component unless otherwise prescribed by rules adopted by the department pursuant to this chapter. This section shall not apply to hemp that is generally recognized as safe (GRAS) by FDA for use in foods, as intended, in a public GRAS notification."

PART II

SECTION 5. The department of health shall establish a dedicated hemp program to regulate the processing and manufacturing of hemp for cannabinoids that is separate from the regulatory process for cannabinoid products with a high concentration of tetrahydrocannabinol. This regulatory program shall ensure hemp farmers and processors do not lose insurance coverage or the ability to utilize banking institutions and shall include a process to regulate recreational cannabis in the event it is legalized in the State.

PART III

SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2050; provided that section 1 shall apply to taxable years beginning after December 31, 2025.

Report Title:

DOH; Green Building Tax Credit; Edible Cannabinoid Products; Tetrahydrocannabinol Concentration Limit; Hemp Biomass; Hemp Program; High THC Products

Description:

Establishes a Green Building Tax Credit for costs related to the construction of a primary structure made with at least thirty per cent Hawaii-grown hemp material. Allows any hemp processor with a permit from the Department of Health to sell an edible or beverage cannabinoid product that contains a tetrahydrocannabinol concentration of not more than 2.5 milligrams per serving and not more than twenty-five servings per package. Prohibits the sale of an edible or beverage cannabinoid product to any person less than twenty-one years of age. Establishes child-resistant packaging requirements for edible cannabinoid products. Clarifies the tetrahydrocannabinol concentration limit for a non-edible legacy cannabinoid product or manufactured hemp product shall be subject only to federal restrictions. Amends the definition of "hemp biomass" to include stalks and foliage material. Requires the Department of Health to establish a dedicated hemp program to regulate hemp that is separate from the regulatory process for cannabinoid products with a high concentration of tetrahydrocannabinol. Effective 7/1/2050. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	1633
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII