SB 768 Hawaii Senate · 2026 Regular Session

RELATING TO TAXATION.

Summary

Creates an alternative water source income tax credit for taxpayers who install, place in service, or repair a water catchment system or who purchase water delivery services. Applicable to taxable years beginning after 12/31/2026. Effective 12/31/2050. (SD1)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 17, 2025 Last action Feb 11, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB768 → SB768_SD1 · 3 edits

MINOR

The bill was converted from a House bill to a Senate District 1 version, updating metadata and dates. The core policy change removes the 'refundable' status of the water tax credit, meaning excess credits can no longer be refunded as cash but must be carried forward for up to five years. The effective date for the credit was extended to apply to taxable years beginning after December 31, 2026, while the entire act takes effect on December 31, 2050.

Scope change

The bill's applicability was extended to taxable years beginning after December 31, 2026, and the act's effective date was set to December 31, 2050.

FISCAL

The tax credit is no longer refundable; excess credits must be carried forward for up to five years instead of being paid out as cash.

TIMELINE

The credit applies to taxable years beginning after December 31, 2026, and the act takes effect on December 31, 2050.

TECHNICAL

The bill was reclassified from HB to SD1, updating author names and revision numbers.

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 11, 2026

Upper · Passed

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

upper

Feb 11, 2026

Committee

Reported from HHS (Stand. Com. Rep. No. 2162) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Jan 28, 2026

Upper · Passed

The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HHS were as follows: 5 Aye(s): Senator(s) San Buenaventura, McKelvey, Kanuha, Keohokalole, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Jan 23, 2026

Upper · Passed

The committee(s) on HHS has scheduled a public hearing on 01-28-26 1:30PM; Conference Room 225 & Videoconference.

upper

Jan 23, 2025

Committee

Referred to HHS, WAM.

upper

Jan 17, 2025

Introduced

Introduced.

upper

6 primary · 0 co-sponsors