STAND.
COM. REP. NO. 635
Honolulu, Hawaii
, 2025
RE: H.B. No. 1417
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 Agriculture & Food Systems, to which was referred H.B. No. 1417 entitled:
"A BILL FOR AN ACT RELATING TO FARMS,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Department of Agriculture; Hawai‘i Farm Bureau; Kanalani Ohana Farm; Hawaiʻi Food+ Policy; and nine individuals. Your Committee received comments on this measure from the Department of Taxation; Department of the Attorney General; and Tax Foundation of Hawaii.
Your Committee finds that Hawaii's farming
population is aging, with twice as many farmers over seventy-five as under
thirty-five, and nearly eighty percent of farms generating less than $25,000
annually. High operational costs make it
difficult for new farmers to sustain viable businesses. This measure provides a state income tax
exclusion on the first $50,000 of gross income earned from farming, allowing
farmers to reinvest in operations, expand production, and adopt sustainable
practices.
Your Committee has amended this measure by:
(1) Clarifying the definition of "farm products";
(2) Changing the effective date to July 1, 3000, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1417, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1417, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,
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____________________________ KIRSTIN KAHALOA, Chair |
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