SB328 • 2026

RELATING TO TAXATION.

Agriculture Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: DELA CRUZ, AQUINO, CHANG, DECOITE, HASHIMOTO, INOUYE, KIDANI, KIM, Richards, San Buenaventura
Last action: 2026-03-20
Official status: Received notice of all Senate conferees being discharged (Sen. Com. No. 409).
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

RELATING TO TAXATION.

What This Bill Does

RELATING TO TAXATION.
Income Tax; Dairy Farm Retrofit; Hog Farm Conversion; Tax Credit Establishes an income tax credit for capital infrastructure costs incurred in the conversion of a dairy farm to a hog farm.
Effective 7/1/3000.
(HD2)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: SB328 HD1 THE SENATE S.B.

SB328 HD1 THE SENATE S.B.
NO.
328 THIRTY-THIRD LEGISLATURE, 2025 S.D.
1 STATE OF HAWAII H.D.

HD2

Hawaii published version HD2

Plain English: SB328 HD2 THE SENATE S.B.

SB328 HD2 THE SENATE S.B.
NO.
328 THIRTY-THIRD LEGISLATURE, 2025 S.D.
1 STATE OF HAWAII H.D.

SD1

Hawaii published version SD1

Plain English: SB328 SD1 THE SENATE S.B.

SB328 SD1 THE SENATE S.B.
NO.
328 THIRTY-THIRD LEGISLATURE, 2025 S.D.
1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO TAXATION .

Bill History

2026-03-20 H
Received notice of all Senate conferees being discharged (Sen. Com. No. 409).
2026-03-20 S
Senate Conferee(s) discharged.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-04-15 H
Received notice of Senate conferees (Sen. Com. No. 789).
2025-04-15 S
Senate Conferees Appointed: Gabbard Chair; DeCoite Co-Chair; Rhoads, Awa.
2025-04-10 H
Received notice of disagreement (Sen. Com. No. 779).
2025-04-10 S
Senate disagrees with House amendments.
2025-04-10 S
Received from House (Hse. Com. No. 640).
2025-04-08 H
Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Amato, Iwamoto voting no (2) and Representative(s) Cochran, Marten excused (2). Transmitted to Senate.
2025-04-04 H
Forty-eight (48) hours notice Tuesday, 04-08-25.
2025-04-04 H
Reported from FIN (Stand. Com. Rep. No. 1999) as amended in HD 2, recommending passage on Third Reading.
2025-04-01 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.
2025-03-28 H
Bill scheduled to be heard by FIN on Tuesday, 04-01-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-03-21 H
Report adopted; referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) Amato voting no (1) and Representative(s) Cochran, Garrett, Kapela, Kitagawa, Ward excused (5).
2025-03-21 H
Reported from ECD (Stand. Com. Rep. No. 1442), recommending referral to FIN.
2025-03-19 H
The committee on ECD recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2025-03-14 H
Bill scheduled to be heard by ECD on Wednesday, 03-19-25 10:00AM in House conference room 423 VIA VIDEOCONFERENCE.
2025-03-14 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with Representative(s) Amato voting aye with reservations; none voting no (0) and Representative(s) Cochran, Holt, Iwamoto, Ward excused (4).
2025-03-14 H
Reported from AGR (Stand. Com. Rep. No. 1222) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
2025-03-12 H
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; 0 Noes: none; and 1 Excused: Representative(s) Ward.
2025-03-07 H
Bill scheduled to be heard by AGR on Wednesday, 03-12-25 9:00AM in House conference room 325 VIA VIDEOCONFERENCE.
2025-03-06 H
Referred to AGR, ECD, FIN, referral sheet 19
2025-03-06 H
Pass First Reading
2025-03-04 H
Received from Senate (Sen. Com. No. 133) in amended form (SD 1).
2025-03-04 S
Report Adopted; Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none). Transmitted to House.
2025-02-27 S
48 Hrs. Notice 03-04-25.
2025-02-27 S
Reported from WAM (Stand. Com. Rep. No. 756) with recommendation of passage on Third Reading, as amended (SD 1).
2025-02-18 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) DeCoite.
2025-02-14 S
The committee(s) on WAM will hold a public decision making on 02-18-25 10:01AM; Conference Room 211 & Videoconference.
2025-02-04 S
Report adopted; Passed Second Reading and referred to WAM.
2025-02-04 S
Reported from AEN (Stand. Com. Rep. No. 19) with recommendation of passage on Second Reading and referral to WAM.
2025-01-27 S
The committee(s) on AEN recommend(s) that the measure be PASSED, UNAMENDED. 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.
2025-01-24 S
The committee(s) on AEN has scheduled a public hearing on 01-27-25 1:00PM; Conference Room 224 & Videoconference.
2025-01-21 S
Referred to AEN, WAM.
2025-01-15 S
Introduced and passed First Reading.
2025-01-14 S
Pending Introduction.

Official Summary Text

RELATING TO TAXATION.
Income Tax; Dairy Farm Retrofit; Hog Farm Conversion; Tax Credit
Establishes an income tax credit for capital infrastructure costs incurred in the conversion of a dairy farm to a hog farm. Effective 7/1/3000. (HD2)

Current Bill Text

Read the full stored bill text

SB328

THE SENATE

S.B. NO.

328

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

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-
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Dairy
farm retrofit income tax credit.
�
(a)
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There shall be allowed to each
taxpayer subject to the tax imposed under this chapter, a dairy farm retrofit
income tax credit that shall be deductible from 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)
�
In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for capital infrastructure costs
incurred by the entity for the taxable year.
�

The costs upon which the tax credit is computed shall be determined at
the entity level.
�
Distribution and share
of credit shall be determined by rule.

����
(c)
�
The dairy farm retrofit income tax credit
shall be equal to fifty per cent of the capital infrastructure costs incurred
by a taxpayer, up to a maximum of $1,000,000.

����
(d)
�
The director of
taxation:

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

����
(2)
�
May require the taxpayer to furnish
reasonable information to ascertain the validity of the claim for the tax
credit made under this section; and

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

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(e)
�
If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of the credit over liability
may be used as a credit against the taxpayer's income tax liability in
subsequent years until exhausted.
�
All
claims for the tax credit under this section, including 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 comply with the foregoing
provision shall constitute a waiver of the right to claim the credit.

����
(f)
�
For the purposes of this section:

����
"Capital
infrastructure costs" means capital expenditures, as used in section 263
of the Internal Revenue Code and regulations promulgated thereunder; provided
that the capital expenditures for real property and fixtures are paid or
incurred in connection with the conversion of a dairy farm to a qualified farm;
provided further that the capital infrastructure costs shall not include costs
for which another credit is claimed under this chapter.

����
"Qualified
farm" means a business:

����
(1)
�
That
currently owns capital or property or operates a hog farm at former dairy farm
facilities; and

����
(2)
�
Whose
principal business is animal husbandry.
"

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SECTION 2.
�

New statutory material is underscored.

����
SECTION 3.
�

This Act, upon its approval, shall apply to taxable years beginning
after December 31, 2024.

INTRODUCED BY:

_____________________________

Report Title:

Income
Tax; Dairy Farm Retrofit; Tax Credit

Description:

Establishes
an income tax credit for capital infrastructure costs incurred in the
conversion of a dairy farm to a hog farm.

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