Hawaii SB2805 creates tax credit for agriculture

Hawaii Legislative Events

Published March 10th, 2026

Detected April 8th, 2026

Summary

Hawaii Senate Bill SB2805 passed both chambers on March 10, 2026, establishing a nonrefundable income tax credit to incentivize significant investment in agricultural production and support crops with extended maturation periods. The credit applies to taxable years beginning after December 31, 2026, and includes a sunset provision effective January 1, 2031.

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What changed

The bill establishes a new nonrefundable income tax credit for qualifying investments in agricultural production, with emphasis on crops that take longer to become productive. Tax credits are available for taxable years beginning after December 31, 2026, and the program sunsets on January 1, 2031, meaning no new credits may be claimed after that date.

Agricultural producers and investors in Hawaii should evaluate whether planned or existing agricultural investments meet the statutory criteria to claim this credit. The limited five-year window and sunset provision suggest the credit is intended as a time-bound stimulus for the sector, and affected parties should plan accordingly to maximize potential benefits before the program expires.

What to do next

Monitor for implementing regulations or Department of Taxation guidance on credit qualification criteria
Assess agricultural investment eligibility for tax years beginning after December 31, 2026

Source document (simplified)

ChangeBridge / Hawaii / SB2805 Passed SB2805 Senate Bill Passed 2026-03-10

Relating To Agriculture.

Establishes a nonrefundable income tax credit to incentivize significant investment in agricultural production and support the expansion of agricultural crops that take longer to become productive. Applies to taxable years beginning after 12/31/2026. Sunsets 1/1/2031. Effective 7/1/3000. (HD1)

Bill Details

State Hawaii

Session 2026 Regular Session

Chamber Senate

Official Source www.capitol.hawaii.gov/session/measure_ind...

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Action History

2026-04-07 H The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Morikawa. 2026-04-02 H Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE. 2026-04-02 H The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26. 2026-03-31 H Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. 2026-03-24 H Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Garrett, Quinlan excused (2). 2026-03-24 H Reported from AGR (Stand. Com. Rep. No. 1391-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. 2026-03-20 H The committee on AGR recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Chun, Kusch, Kahaloa, Lowen, Perruso, Matsumoto; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Quinlan. 2026-03-17 H Bill scheduled to be heard by AGR on Friday, 03-20-26 9:30AM in House conference room 325 VIA VIDEOCONFERENCE. 2026-03-12 H Referred to AGR, FIN, referral sheet 17 2026-03-12 H Pass First Reading 2026-03-10 H Received from Senate (Sen. Com. No. 300) in amended form (SD 2). 2026-03-10 S Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. 2026-03-05 S 48 Hrs. Notice 03-10-26. 2026-03-05 S Reported from WAM (Stand. Com. Rep. No. 2787) with recommendation of passage on Third Reading, as amended (SD 2). 2026-03-03 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, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. 2026-02-25 S The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference. 2026-02-23 S The committee(s) on WAM will hold a public decision making on 02-25-26 10:57AM; Conference Room 211 & Videoconference. 2026-02-20 S Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. 2026-02-20 S Reported from AEN (Stand. Com. Rep. No. 2496) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. 2026-02-13 S The committee(s) on AEN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in AEN were as follows: 4 Aye(s): Senator(s) Gabbard, Richards, Rhoads, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) DeCoite. 2026-02-10 S The committee(s) on AEN has scheduled a public hearing on 02-13-26 3:10PM; CR 224 & Videoconference. 2026-01-30 S Referred to AEN, WAM. 2026-01-26 S Passed First Reading. 2026-01-23 S Introduced.

Votes

2026-02-13 Senate Agriculture and Environment: Passed, With Amendments Yea: 4 Nay: 0 2026-03-03 Senate Ways and Means: Passed, With Amendments Yea: 12 Nay: 0