STAND. COM. REP. NO. 756

Honolulu, Hawaii

RE: S.B. No. 328

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 328 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to promote food production in the State.

More specifically, this measure establishes an income tax credit for capital infrastructure costs incurred in the conversion of a dairy farm to a hog farm.

Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Farm Bureau; and Purple Maia Foundation.

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

Your Committee finds that pork consumption in Hawaii is projected to grow from 92.8 million pounds in 2023 to over 104 million pounds by 2030. However, local supply currently accounts for only 0.4 per cent of pork consumed, with an additional 2.9 per cent produced in the grey market. Your Committee further finds that the steep decline in Hawaii's hog inventory and production, from 28,570 hogs in 1992 to just 8,000 in 2023, highlights the urgent need to bolster local pork production capacity. Your Committee believes this measure is a critical step toward revitalizing Hawaii's hog industry, reducing reliance on imports, and achieving the State's ambitious food security and sustainability goals.

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. 328, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 328, 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