STAND. COM. REP. NO. 1026-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2017

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 2017, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to establish a nonrefundable income tax credit for certain agricultural investment costs incurred for agricultural activities conducted on Hawaiian home lands for taxable years beginning after December 31, 2026.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands; Hawaiʻi Farm Bureau; and one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Taxation.

Your Committee has amended this measure by:

(1) Specifying that expenses deducted as depreciable business assets under section 179 of the Internal Revenue Code are not additionally eligible as expenses for the tax credit; and

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

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2017, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2017, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

CHRIS TODD, Chair