THE SENATE	S.B. NO.	2925
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO COCONUT TREES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-    Natural management of the coconut rhinoceros beetle tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, who is not eligible to be claimed as a dependent for federal or state income taxes by another and who files an individual income tax return for a taxable year, a natural management of the coconut rhinoceros beetle tax credit that shall be applied against 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 tax credit shall be equal to       per cent of the qualified costs incurred by the taxpayer to implement natural management practices of the coconut rhinoceros beetle that result in consumable coconut trees, or $          , whichever is less.

(c) The standards for eligibility and certification of costs for the tax credit shall be determined by the department of agriculture and biosecurity. The taxpayer shall submit verification or allow inspection as determined by the department of agriculture and biosecurity; provided that the verification shall include a certification by the taxpayer that no systemic or prohibited pesticides have been applied to the coconut trees and that only natural management practices approved by the department of agriculture and biosecurity have been implemented.

(d) All claims for the tax credit 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 credit may be claimed. Failure to properly claim the credit shall constitute a waiver of the right to claim the credit.

(e) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of the credit over payments due may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

(f) No taxpayer who claims the tax credit under this section shall claim any other credit for the same expenses or costs.

(g) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require proof of the claim for the tax credit; and

(3) May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

(h) For the purposes of this section, "consumable coconut tree" means a coconut tree managed without the application of systemic or persistent pesticides that would render the coconut water or meat unsafe for human consumption."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 3000; provided that section 1 shall apply to taxable years beginning after December 31, 2026.

Report Title:

DAB; Taxation; Natural Management of Coconut Rhinoceros Beetle Tax Credit

Description:

Establishes an income tax credit for qualified costs to implement natural management of coconut rhinoceros beetles that result in consumable coconut trees. Applies to taxable years beginning after 12/31/2026. Effective 7/1/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.