SB 1260 Hawaii Senate · 2026 Regular Session

RELATING TO AGRICULTURE.

SB 1260 creates a tax credit for farmers who adopt agroecological and climate-smart farming practices, directly benefiting agricultural producers who implement these methods. The credit applies to taxable years starting after December 31, 2025, providing financial incentive for practices that improve soil health and reduce emissions. This policy change shifts tax treatment to reward specific sustainable farming techniques without altering existing agricultural regulations.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 21, 2025 Last action Dec 8, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB1260 → SB1260_SD1 · 6 edits

MODERATE

This bill revision updates the administrative metadata to reflect a new Senate Draft version and clarifies the tax credit's definition to apply to 'qualified expenses' rather than just the taxpayer. It significantly expands the program by setting a $1,000,000 annual funding cap, extending the carryforward period for unused credits to five years, and explicitly including Native Hawaiian agricultural systems in the list of eligible practices.

Scope change

The bill's scope was expanded to explicitly include Native Hawaiian agricultural systems (such as loi kalo and loko ia fishponds) as eligible farming practices, and the funding cap was increased to $1,000,000 per year.

DEFINITION

Added a specific definition for 'qualified expenses' to clarify that the credit covers costs incurred in adopting agroecological practices.

Explicitly listed Native Hawaiian agricultural systems, including loi kalo wetlands and loko ia fishponds, as eligible farming practices.

FISCAL

Set a specific annual funding cap of $1,000,000 for the total tax credits available to all taxpayers.

REQUIREMENT

Extended the time limit for using unused tax credits from the previous standard to five consecutive taxable years.

Required the Board of Agriculture to establish clear certification standards in consultation with the Department of Taxation.

ELIGIBILITY

Changed the credit calculation basis from a flat amount to a percentage of qualified expenses, with a maximum credit of $25,000 per taxpayer per year.

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 13, 2025

Upper · Passed

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

upper

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