SB 2887 Hawaii Senate · 2026 Regular Session

RELATING TO AGRICULTURE.

Summary

For taxable years beginning after 1/1/2027, establishes a nonrefundable income tax credit for certain agricultural investment costs incurred for agricultural activities conducted on Hawaiian home lands. Effective 7/1/2050. (SD1)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Feb 20, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2887 → SB2887_SD1 · 4 edits

MODERATE

The bill was converted from a Senate draft (SB) to a House committee version (SD1), which completely rewrites the legislation's purpose and scope. The original bill aimed to expand an existing tax credit to include Hawaiian home lands, while the new version establishes an entirely new nonrefundable tax credit specifically for agricultural investments made on Hawaiian home lands designated for subsistence, supplemental, or pastoral use.

Scope change

The bill's scope shifted from amending an existing 'Important Agricultural Land' tax credit to creating a distinct 'Hawaiian Home Lands Agricultural Investment Tax Credit' with a new effective date of July 1, 2050.

SCOPE

The legislative purpose changed from amending an existing tax credit to establishing a new, separate tax credit exclusively for Hawaiian home lands.

ELIGIBILITY

New eligibility criteria were added, restricting the credit to taxpayers holding valid leases or rights-of-entry from the Department of Hawaiian Home Lands for specific land uses.

TIMELINE

The effective date was changed from immediate application to a future start date of July 1, 2050, while retaining the same taxable year application date.

DEFINITION

The definition of 'qualified agricultural costs' was simplified and narrowed to focus specifically on investments on Hawaiian home lands, removing broader definitions related to general important agricultural lands.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 20, 2026

Committee

Reported from AEN/HWN (Stand. Com. Rep. No. 2565) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 12, 2026

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 12, 2026

Upper · Passed

The committee(s) on HWN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HWN were as follows: 5 Aye(s): Senator(s) Richards, Lamosao, Ihara, Keohokalole, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 6, 2026

Upper · Passed

The committee(s) on AEN/HWN has scheduled a public hearing on 02-12-26 1:00PM; CR 224 & Videoconference.

upper

Jan 30, 2026

Committee

Referred to AEN/HWN, WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

3 primary · 0 co-sponsors