HB 1417 Hawaii House · 2026 Regular Session

RELATING TO FARMS.

HB 1417 creates a state income tax exclusion for the first $50,000 of gross income earned by farmers. This directly affects small-scale farmers whose annual farm income falls below $50,000, reducing their state tax burden on that portion of earnings. The bill excludes qualifying farm income from taxable income calculations, meaning farmers would pay no state income tax on the first $50,000 they earn from farming operations. It is scheduled to take effect on July 1, 3000.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 23, 2025 Last action Dec 8, 2025
Maddy AI version diff · 1 comparison

What changed between versions

HB1417 HB1417_HD1 · 4 edits
MODERATE
This bill version expands the definition of a 'farmer' and 'farm products' to include a wider variety of crops, livestock, and activities like bioenergy and timber, while also updating the effective date of the tax exclusion to July 1, 3000. These changes broaden who qualifies for the tax break and clarify what agricultural income is covered, ensuring the law applies to modern farming practices.
Scope change
The bill's scope was expanded to include more types of agricultural activities and products under the tax exclusion, and the effective date was delayed significantly.
DEFINITION

The definition of 'farm products' was broadened to explicitly list crops for bioenergy, flowers, vegetables, foliage, fruits, forage, and timber, as well as game, fish, and livestock, replacing a narrower reference to specific statutory sections.

The definition of 'farmer' was updated to specify that an individual must earn more than 75% of their gross income from farming to qualify.

TIMELINE

The effective date for the tax exclusion was changed from the end of 2025 to July 1, 3000, likely as a placeholder or error in the draft version.

SCOPE

The description of the bill was updated to specify that the exclusion applies to 'gross income' rather than just 'income'.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
7
Key actions
1
Committee
3
Feb 14, 2025
Committee
Reported from AGR (Stand. Com. Rep. No. 635) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
lower
Feb 12, 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 27, 2025
Committee
Referred to AGR, FIN, referral sheet 4
lower
Jan 23, 2025
Introduced
Introduced and Pass First Reading.
lower
5 primary · 1 co-sponsor

Sponsors