Bill Text: HI HB2185 | 2016 | Regular Session | Introduced
Bill Title: Income Tax Credit; Carbon Farming; Agriculture
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced - Dead) 2016-02-10 - The committee(s) on AGR recommend(s) that the measure be deferred. [HB2185 Detail]
Download: Hawaii-2016-HB2185-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2185 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
Relating to Carbon farming.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The earth has three main carbon sinks: the atmosphere, the oceans, and the humus-sphere. The humus-sphere is made of stable, long-lasting remnants of decaying organic material essential to soil fertility and the growth of nutrient-rich crops. Soil has lost most of its humus due to industrial farming techniques and bad land-management practices. Industrial agriculture contributes twenty to thirty per cent of all manmade greenhouse gases in the atmosphere and land management is the second largest contributor to carbon dioxide emissions on earth. The legislature finds that the agricultural sector has the ability to sequester carbon dioxide in the atmosphere and reduce emissions of carbon dioxide through carbon farming.
Carbon farming involves implementing practices that are known to improve the rate at which carbon dioxide is removed from the atmosphere and converted to plant material or soil organic matter. Research conducted in California showed that if compost from green waste, including household food scraps and dairy manure, were applied to five per cent of California's grazing lands, the soil could sequester the annual greenhouse gas emissions from California's farm and forestry industries. Carbon farming has captured the attention of the White House, Governor of California's administration, city of San Francisco, officials in Brazil and China, and members of the United States House of Representatives.
The purpose of this Act is to establish an income tax credit for taxpayers who practice carbon farming on their property.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Carbon farming tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
For each qualifying property, the dollar amount of the carbon farming tax credit shall be $ . A taxpayer may claim this credit for each qualifying property.
(b) As used in this section:
"Carbon farming" means utilizing agricultural practices free from the use of synthetic pesticides and fossil fuel dependent nitrogen fertilizer, including but not limited to cover crops, residue mulching, composting, and crop rotation, for the purposes of improving the photosynthetic removal and retention of atmospheric carbon dioxide in soil organic matter.
"Compost" means a relatively stable, decomposed, organic, humus-like material, generated by a composting facility that is suitable for landscaping or soil amendment purposes.
"Composting" means a process in which organic solid wastes, such as green or yard waste materials, manures, and non-treated wood chips and shavings, are biologically decomposed and stabilized under controlled conditions to produce a stable humus-like mulch or soil amendment.
"Green waste" means leaves, garden residues, shrubbery and tree trimmings, grass clippings, and similar material.
"Qualifying property" means property where the taxpayer practices carbon farming; provided that the property is:
(1) Located in an agricultural district, as defined under section 205-2(d); and
(2) Operated for agricultural purposes as permitted under section 205-4.5.
(c) If the credit under this section exceeds the taxpayer's net income tax liability for the taxable year, the excess of the credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the credits allowed by this section shall be made for amounts less than $1.
All claims for a 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 is claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(d) The director of taxation:
(1) Shall prepare any forms that may be necessary to claim a credit under this section;
(2) May require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section; and
(3) May adopt rules pursuant to chapter 91 to effectuate this section.
(e) The department of agriculture shall:
(1) Verify that the taxpayer qualifies to claim the tax credit; and
(2) Certify the total amount of the tax credit for each taxable year.
Upon each determination, the department of agriculture shall issue a certificate to the taxpayer verifying the credit amount certified for each taxable year.
The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation. Notwithstanding the department of agriculture's certification authority under this section, the director of taxation may audit and adjust certification to conform to the facts."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2016.
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INTRODUCED BY: |
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Report Title:
Income Tax Credit; Carbon Farming; Agriculture
Description:
Establishes an income tax credit for taxpayers who practice carbon farming for agricultural purposes on property located in agricultural districts.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
