STAND. COM. REP. NO. 1786

Honolulu, Hawaii

RE: H.B. No. 610

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 610, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to establish the farm workforce retention tax credit for farm employers or owners of farm employers that employ farm employees who are unable to work due to documented illnesses or disabilities.

Your Committee received written comments in support of this measure from the Department of Agriculture, Hawaii Farm Bureau, Hawaii Farmers Union United, Maui Chamber of Commerce, Ulupono Initiative, and three individuals.

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

Your Committee finds that by supporting efforts of farm businesses to incentivize farm employees' long-term workforce commitments, the farm workforce retention tax credit will help to address the labor retention issues faced by the agricultural industry in Hawaii.

Your Committee has amended this measure by:

(1) Making the farm workforce retention tax credit nonrefundable;

(2) Clarifying how the tax credit will be determined and distributed for partnerships, S corporations, estates, and trusts;

(3) Clarifying the statutory deadline by which claims for the tax credit must be filed; and

(4) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

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 H.B. No. 610, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 610, H.D. 2, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair