Bill Text: HI SB1393 | 2011 | Regular Session | Introduced
Bill Title: Agriculture; Aquaculture; Tax Credits
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2011-04-19 - (H) Received notice of Senate conferees (Sen. Com. No. 649). [SB1393 Detail]
Download: Hawaii-2011-SB1393-Introduced.html
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THE SENATE |
S.B. NO. |
1393 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to agriculture.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§205‑ Dams and reservoirs. All dams and related reservoir areas classified as important agricultural lands shall remain subject to the jurisdiction of the department of land and natural resources and the provisions of chapter 179D; provided that dams and related reservoir areas designated as important agricultural lands shall also be eligible for inclusion in the total acreage calculation pursuant to section 205-45(h) and incentives pursuant to section 205-46."
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:
"§235-A Dam remediation tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for remediation of dams pursuant to an order of the department of land and natural resources under section 179D-6(b)(16), which 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.
(b) The amount of the credit determined under this section for the taxable year shall be equal to seventy-five per cent of the cost of all remediation measures taken to comply with an order of the department of land and natural resources issued pursuant to section 179D-6(b)(16).
(c) For purposes of this section:
"Dam" has the same meaning as in section 179D-3.
"Remediation" means any work performed or measures taken to comply with an order of the department of land and natural resources issued pursuant to section 179D-6(b)(16); provided that remediation shall not include any measures taken pursuant to an order issued pursuant to section 179D-24(f).
(d) The following costs and expenses are ineligible to be claimed for this credit:
(1) Costs recoverable by the department of land and natural resources pursuant to subsection 179D-24(c) for emergency measures taken by the department to protect life or property;
(2) Attorney's fees recoverable by the department of land and natural resources pursuant to subsection 179D‑24(d); and
(3) Costs incurred in complying with an order of the department of land and natural resources issued pursuant to subsection 179D-24(f), regardless of whether the taxpayer is ultimately successful in any challenge to that order.
(e) A successor landowner of a remediated dam subject to this section shall not be eligible to claim the tax credit allowed by this section.
(f) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. A tax credit under this section that exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
(g) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(h) No deduction shall be allowed for that portion of the cost of remediation paid or incurred for the taxable year that is equal to the amount of the credit determined under this section.
(i) The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section.
§235-B Aquacultural facilities tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for the cost of capital investments in aquacultural facilities, which 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.
(b) The amount of the credit determined under this section for the taxable year shall be equal to twenty-five per cent of the amount of capital investments in aquacultural facilities.
(c) For purposes of this section:
"Aquacultural facilities" means infrastructure used in the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for commercial purposes or authorized stock enhancement purposes including hatcheries; on-shore and off-shore farms including ponds and off shore cages or nets; harvesting facilities; and processing facilities.
(d) A successor owner of aquacultural facilities subject to this section shall not be eligible to claim the tax credit allowed by this section.
(e) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. A tax credit under this section that exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
(f) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(g) No deduction shall be allowed for that portion of the capital investment paid or incurred for the taxable year that is equal to the amount of the credit determined under this section.
(h) The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section.
§235-C Qualified agricultural food processing facilities tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for the cost of capital investments in qualified agricultural food processing facilities, which 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. The tax credit amount shall be determined as follows:
(1) In the first year in which the credit is claimed, twenty per cent of the capital investments made by the taxpayer for the qualified agricultural food processing facility after July 1, 2011;
(2) In the second year in which the credit is claimed, twenty per cent of the capital investments made by the taxpayer for the qualified agricultural food processing facility after July 1, 2011;
(3) In the third year in which the credit is claimed, twenty per cent of the capital investments made by the taxpayer for the qualified agricultural food processing facility after July 1, 2011;
(4) In the fourth year in which the credit is claimed, twenty per cent of the capital investments made by the taxpayer for the qualified agricultural food processing facility after July 1, 2011; and
(5) In the fifth year in which the credit is claimed, twenty per cent of the capital investments made by the taxpayer for the qualified agricultural food processing facility after July 1, 2011.
(b) No other credit shall be claimed under this chapter for capital investments in qualified agricultural food processing facilities for which a credit is properly claimed under this section for the taxable year.
(c) For purposes of this section:
"Agricultural commodity" means fresh fruits and fresh vegetables of every kind and character, whether or not frozen or packed in ice, whether produced in the State or imported; nuts, and coffee, whether cherry or parchment; green beans that have been produced in the State; and raw unprocessed honey, whether produced in the State or imported.
"Qualified agricultural food processing facility" means a facility that produces products for human consumption from raw agricultural commodities, including a facility that prepares agricultural commodities for sale to consumers; provided that at least fifty per cent by volume of the agricultural commodities processed at the facility are derived from important agricultural lands.
(d) A successor owner of qualified agricultural food processing facilities subject to this section shall not be eligible to claim the tax credit allowed by this section.
(e) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. A tax credit under this section that exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
(f) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(g) No deduction shall be allowed for that portion of the capital investment paid or incurred for the taxable year that is equal to the amount of the credit determined under this section.
(h) The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section.
§235-D Qualified agricultural worker housing tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for the cost of capital investments in qualified agricultural worker housing, which 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.
(b) The amount of the credit determined under this section for the taxable year shall be equal to thirty-five per cent of the cost of constructing qualified agricultural worker housing.
(c) For purposes of this section:
"Agricultural activities" means:
(1) Cultivation of crops, including crops for bioenergy, flowers, vegetables, foliage, fruits, forage, and timber;
(2) Game and fish propagation; and
(3) Raising of livestock, including poultry, bees, fish, or other animals or aquatic life that are propagated for economic or personal use.
"Qualified agricultural worker housing" means a single-family dwelling located on or occupied by workers employed in agricultural activities located on important agricultural lands, as defined by section 205-42, and their families.
(d) A successor landowner of agricultural water housing subject to this section shall not be eligible to claim the tax credit allowed by this section.
(e) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. A tax credit under this section that exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
(f) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(g) No deduction shall be allowed for that portion of the cost of constructing qualified agricultural worker housing paid or incurred for the taxable year that is equal to the amount of the credit determined under this section.
(h) The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section."
SECTION 3. Chapter 266, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§266- Priority for aquacultural activities. (a) At all harbors and waterfront improvements belonging to or controlled by the State, aquacultural enterprises shall have priority of access over leisure crafts and houseboats.
(b) For purposes of this section, "aquacultural enterprises" means persons or entities actively engaged in the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for commercial purposes, including stock enhancement."
SECTION 4. Section 166-2, Hawaii Revised Statutes, is amended by amending the definition of "agricultural activities" to read as follows:
""Agricultural activities" means the care and production of livestock, livestock products, poultry, or poultry products, or apiary, horticultural, or floricultural products, or aquatic life, or the planting, cultivating, and harvesting of crops or trees, including tree farms."
SECTION 5. Section 201-1, Hawaii Revised Statutes, is amended by amending the definition of "agriculture" to read as follows:
""Agriculture" and "agricultural"
mean the planting, cultivating, and harvesting of crops[,] or aquatic
life, including [those so] crops and aquatic life that are
planted, cultivated, and harvested for food, ornamental, grazing, or forest
purposes[. Once the]; provided that once crops or aquatic
life are harvested and transported to a point of distribution, they cease
to be agricultural [in the terms] for purposes of this part."
SECTION 6. Section 205-41, Hawaii Revised Statutes, is amended to read as follows:
"[[]§205-41[]]
Declaration of policy. (a) It is declared that the people of Hawaii have a substantial interest in the health and sustainability of agriculture as an
industry in the State. There is a compelling state interest in conserving the
State's agricultural land resource base and assuring the long-term availability
of agricultural lands for agricultural use to achieve the purposes of:
(1) Conserving and protecting agricultural lands;
(2) Promoting diversified agriculture[;], including
the cultivation of aquatic plants and animals;
(3) Increasing agricultural self-sufficiency; and
(4) Assuring the availability of agriculturally suitable lands,
pursuant to article XI, section 3, of the Hawaii state constitution.
(b) For purposes of this part, the term "agriculture" shall include the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for commercial purposes, including stock enhancement."
SECTION 7. Section 205-44, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The standards and criteria shall be as follows:
(1) Land currently used for agricultural production;
(2) Land with soil qualities and growing conditions that support agricultural production of food, fiber, or fuel- and energy-producing crops;
(3) Land identified under agricultural productivity rating systems, such as the agricultural lands of importance to the State of Hawaii (ALISH) system adopted by the board of agriculture on January 28, 1977;
(4) Land types associated with traditional native Hawaiian agricultural uses, such as taro cultivation, or unique agricultural crops and uses, such as coffee, vineyards, aquaculture, and energy production;
(5) Land with sufficient quantities of water to support viable agricultural production;
(6) Land whose designation as important agricultural lands is consistent with general, development, and community plans of the county;
(7) Land that contributes to maintaining a critical land mass important to agricultural operating productivity; and
(8) Land with or near support infrastructure, including dams and reservoirs, conducive to agricultural productivity, such as transportation to markets, water, or power."
SECTION 8. Section 205-45, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:
"(h) A petitioner granted a declaratory order that designates important agricultural land, whether or not combined with the reclassification of land to the rural, urban, or conservation district, shall earn credits if the amount of land reclassified to the rural, urban, or conservation district is less than fifteen per cent of the total acreage of land subject to the order. The "total acreage of land subject to the order" means the total acreage, including dams and reservoirs that support the land designated as important agricultural land, designated as important agricultural land and, if applicable, reclassified to the rural, urban, or conservation district by the declaratory order.
The credits shall equal the difference between the following, rounded to the nearer tenth of an acre:
(1) The number that is fifteen per cent of the total acreage of land subject to the order; less
(2) The amount of the petitioner's land that is reclassified from the agricultural district to the rural, urban, or conservation district by the declaratory order.
A petitioner with credits earned within a county may petition the commission for a declaratory order to reclassify any of the petitioner's other land in the same county from the agricultural district to the rural, urban, or conservation district until the credits are exhausted or expired. The "petitioner's other land in the same county" means land owned by the petitioner that is in the same county as the land designated or reclassified under the petition. The commission may issue the declaratory order if it finds that the land is suitable for reclassification in accordance with section 205-2 and that the reclassification is consistent with the relevant county general and community, development, or community development plans. The petitioner may petition for such reclassification until all of the petitioner's credits are exhausted. Any unexhausted credits shall expire and become unusable ten years after the granting of the declaratory order that designated the important agricultural land and, if applicable, reclassified land to the rural, urban, or conservation district.
A petitioner with unused and unexhausted credits shall not transfer the credits to another person."
SECTION 9. Section 205-45.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§205-45.5[]]
Important agricultural land; farm dwellings and employee housing. (a)
A landowner whose agricultural lands are designated as important agricultural
lands may develop, construct, and maintain farm dwellings and employee housing
for farmers, employees, and their immediate family members on these lands;
provided that:
(1) The farm dwellings and employee housing units shall be used exclusively by farmers and their immediate family members who actively and currently farm on important agricultural land upon which the dwelling is situated; provided further that the immediate family members of a farmer may live in separate dwelling units situated on the same designated land;
(2) Employee housing units shall be used exclusively by employees and their immediate family members who actively and currently work on important agricultural land upon which the housing unit is situated; provided further that the immediate family members of the employee shall not live in separate housing units and shall live with the employee;
(3) The total land area upon which the farm dwellings and employee housing units and all appurtenances are situated shall not occupy more than five per cent of the total important agricultural land area controlled by the farmer or the employee's employer or fifty acres, whichever is less;
(4) The farm dwellings and employee housing units
shall meet all applicable [building code] requirements[;] established
by the board pursuant to subsection (b);
(5) Notwithstanding section 205-4.5(a)(12), the landowner shall not plan or develop a residential subdivision on the important agricultural land;
(6) Consideration may be given to the cluster development of farm dwellings and employee housing units to maximize the land area available for agricultural production; and
(7) The plans for farm dwellings and employee housing units shall be supported by agricultural plans that are approved by the department of agriculture.
(b) Notwithstanding any other state or county law to the contrary, the board shall establish requirements for farm dwellings and employee housing units on important agricultural lands by rule pursuant to chapter 91. The board may waive any otherwise applicable building codes or infrastructure requirements; provided that the board may not waive any laws or ordinances that result in compromising the health or safety of any residents of farm dwellings or agricultural housing."
SECTION 10. Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:
"§237-24.75 Additional exemptions. In addition to the amounts exempt under section 237-24, this chapter shall not apply to:
(1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII;
(2) Amounts received by the operator of the Hawaii
convention center for reimbursement of costs or advances made pursuant to a
contract with the Hawaii tourism authority under section 201B‑7[[];
[and]
[](3) Amounts received[]] by a
professional employment organization from a client company equal to amounts
that are disbursed by the professional employment organization for employee
wages, salaries, payroll taxes, insurance premiums, and benefits, including
retirement, vacation, sick leave, health benefits, and similar employment
benefits with respect to assigned employees at a client company; provided that
this exemption shall not apply to a professional employment organization upon
failure of the professional employment organization to collect, account for,
and pay over any income tax withholding for assigned employees or any federal
or state taxes for which the professional employment organization is
responsible. As used in this paragraph, "professional employment
organization", "client company", and "assigned
employee" shall have the meanings provided in section 373K-1[.];
and
(4) Amounts received for the wholesale or retail business conducted by a qualified agricultural food processing facility, as defined in section 235-C, during the first five years of its operation."
SECTION 11. 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 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 13. This Act shall take effect on July 1, 2011.
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INTRODUCED BY: |
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Report Title:
Agriculture; Aquaculture; Tax Credits
Description:
Authorizes the inclusion of dams and reservoirs serving important agriculture lands in the total acreage calculation for important agriculture lands; provides tax credits for dam remediation, aquacultural facilities, certain agricultural processing facilities, and certain agricultural worker housing; grants priority to aquacultural activities at state-owned harbors; includes aquaculture in agricultural activities; authorizes the board to create standards for certain agricultural worker housing.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
