HB1417

Hawaii HB1417 creates a tax exemption for the first $50,000 of income earned by farmers to encourage small, diversified farming businesses.

Hawaii HB1417 amends the state's tax code to exclude the first $50,000 of income earned by farmers from gross income, adjusted gross income, and taxable income. The bill defines a farmer as an individual earning more than seventy-five percent of their gross income from farm products. The purpose of this exclusion is to incentivize the growth of small, diversified farming businesses, particularly among younger generations, and to strengthen the state's economy. The exemption applies to taxable years beginning after December 31, 2025.