SB 1260 Hawaii Senate · 2025 Regular Session

RELATING TO AGRICULTURE.

SB 1260 creates a state tax credit for farmers who adopt agroecological and climate-smart farming practices, such as cover cropping, reduced tillage, and integrated pest management. The credit applies to tax years beginning after December 31, 2025, directly benefiting agricultural producers who implement these sustainable methods. Key provisions allow eligible farmers to reduce their state tax liability based on verified adoption of specific eco-friendly practices. The bill passed a legislative committee with amendments and is now advancing toward potential enactment.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 13, 2025

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What changed between versions

SB1260 → SB1260_SD1 · 6 edits

MODERATE

This bill was revised to add specific funding limits, extend carryforward periods for unused credits, and clarify definitions of eligible farming practices. The changes make the tax credit more structured and predictable for taxpayers while expanding the scope of recognized sustainable farming methods.

Scope change

The bill now explicitly defines 'qualified expenses' and expands the definition of eligible farming practices to include specific Native Hawaiian agricultural systems.

FISCAL

Added a $25,000 maximum credit per taxpayer per year and a $1,000,000 total annual cap for all taxpayers.

REQUIREMENT

Changed the credit calculation from a fixed dollar amount to a percentage of qualified expenses (specific percentage left blank in draft).

TIMELINE

Extended the carryforward period for unused tax credits from indefinite to five consecutive taxable years.

DEFINITION

Added explicit definitions for 'qualified expenses' and 'qualified taxpayer' to clarify eligibility.

SCOPE

Expanded the definition of eligible farming practices to specifically include Native Hawaiian agricultural systems like loi kalo wetland cultivation and loko ia fishponds.

ENFORCEMENT

Added requirement that the Board of Agriculture consult with the Department of Taxation to establish certification standards.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 13, 2025

Committee

Reported from AEN (Stand. Com. Rep. No. 458) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 10, 2025

Upper · Passed

The committee(s) on AEN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in AEN were as follows: 5 Aye(s): Senator(s) Gabbard, Richards, DeCoite, Rhoads, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on AEN has scheduled a public hearing on 02-10-25 1:01PM; Conference Room 224 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to AEN, WAM.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 21, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors