Informing the Legislature that on July 3, 2025, the Governor returned the following bill without approval: HB796 HD1 SD1 CD1

House Bill 796 would have required most Hawaii income tax credits existing on December 31, 2025, or established after that date, to either expire after five years or undergo a gradual reduction in value (one-third per year for three years starting in the sixth year). This provision would not apply to certain credits, such as those for renewable energy under specific sections of law. The bill passed the legislature but was vetoed by Governor Josh Green on July 3, 2025, who argued it would harm economic development in key industries.