HB 499 Hawaii House · 2025 Regular Session

RELATING TO RESILIENCY.

Summary

Establishes the Food and Beverage Supply Chain Resiliency Income Tax Credit to be administered by the Department of Business, Economic Development, and Tourism and Department of Taxation. Requires DBEDT to establish expedited permitting processes for food and beverage supply chain activities. Applicable to taxable years beginning after 12/31/2025. Effective 7/1/3000. (HD1)

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 17, 2025 Last action Feb 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

HB499 → HB499_HD1 · 5 edits

MODERATE

This bill version adds a new provision requiring the Department of Business, Economic Development, and Tourism to establish expedited permitting processes for food and beverage supply chain projects, including specific timelines for permit approval. It also adds a requirement that at least 25% of the tax credit be reserved for small-scale producers and community-based organizations, and clarifies that taxpayers who cannot claim the credit in one year due to the cap can claim it in the next year. These changes expand the bill's scope to include permitting reform and strengthen support for smaller local businesses.

Scope change

Added new requirements for expedited permitting processes and reserved tax credit allocation for small-scale producers and community-based organizations.

REQUIREMENT

Added Section 3 requiring the Department of Business, Economic Development, and Tourism to establish expedited permitting processes for food storage, processing facilities, retail expansion, and agricultural infrastructure, with a 180-day review and approval timeline.

ELIGIBILITY

Added a requirement that at least 25% of the total tax credits allowed in any taxable year be reserved for small-scale producers and community-based organizations.

Modified Section 2(c) to allow taxpayers who cannot claim the credit in a taxable year due to the $2,000,000 cap to claim it in the subsequent taxable year.

DEFINITION

Added new definitions for 'Food and beverage supply chain' and 'Qualified food and beverage supply chain costs' to clarify which entities and expenses qualify for the tax credit.

ENFORCEMENT

Added provisions for the Department of Business, Economic Development, and Tourism to issue certificates to taxpayers verifying submitted information and for the Department of Taxation to audit and adjust tax credit amounts.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 3, 2025

Committee

Reported from AGR (Stand. Com. Rep. No. 30) as amended in HD 1, recommending passage on Second Reading and referral to ECD.

lower

Jan 29, 2025

Lower · Passed

The committee on AGR recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Kahaloa, Kusch, Lowen, Perruso, Quinlan; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.

lower

Jan 21, 2025

Committee

Referred to AGR, ECD, FIN, referral sheet 2

lower

Jan 21, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 17, 2025

Introduced

Pending introduction.

lower

8 primary · 0 co-sponsors