Budget & Taxes (Business Taxes)

passed both · Hawaii · House Mar 24, 2026

HB 2590: RELATING TO TAXATION.

Imposes the manufacturing general excise tax rate on motion picture, digital media, and film productions and repeals the provision in the definition of "qualified production costs" that applied the term to mean costs incurred that are subject to the highest general excise tax rate. Exempts from the general excise tax certain amounts received by a motion picture project employer from a client company equal to amounts that are disbursed by the motion picture project employer for employee wages, salaries, payroll taxes, insurance premiums, and employment benefits and payments to loan-out companies. Requires persons making payment to a loan-out company and claiming the Motion Picture, Digital Media, and Film Production Income Tax Credit to deduct and withhold an amount exceeding the amount actually due for all payments made to the loan-out company for services performed in the State. Applies to taxable years beginning after 12/31/2026. Effective 7/1/3050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption for film production wages, directly altering tax policy to reduce burden on industry per bill's exemption provision.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Hawaii · Senate Jan 22, 2026

SB 2104: RELATING TO THE GENERAL EXCISE TAX.

Implements a phased repeal of the state general excise tax on the sale of groceries and nonprescription drugs in the State. Prohibits counties from establishing county surcharges on the state general excise tax on gross income or gross proceeds from the sale of groceries and nonprescription drugs in the State. Prohibition on county surcharges to be repealed on 12/31/2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesPhased repeal of excise tax on groceries/nonprescription drugs provides direct tax relief for essential purchases, aligning with middle/lower income support indicators.95% confidence

Sub-Topics Business Taxes Sales Tax

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passed · Hawaii · Senate Feb 11, 2026

SB 2332: RELATING TO TAXATION.

Reestablishes the Agricultural Development and Food Security Special Fund. Establishes the Carbon Emissions Tax and Dividend Special Fund. Gradually increases the Environmental Response, Energy, Carbon Emissions, and Food Security tax rates and establishes a refundable carbon cashback tax credit to offset increases for most taxpayers. Requires reports to the Legislature. Appropriates funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesReestablishes tax funds, increases rates with refundable carbon cashback credit to offset most taxpayers' burden, funds environmental/agricultural programs via appropriations.90% confidence ✓ EnergySupports EnergyBill imposes carbon emissions tax with refundable credit to reduce fossil fuel dependence, advancing renewable energy transition through fiscal policy.95% confidence ✓ EnvironmentSupports EnvironmentBill establishes Carbon Emissions Tax and Dividend Special Fund to reduce emissions, with refundable tax credit for taxpayers and Environmental Response appropriations.95% confidence

Sub-Topics Business Taxes Tax Credits Climate Change

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in committee · Hawaii · Senate Feb 2, 2026

SB 3270: RELATING TO TAX INCREMENT BONDS.

Conforms county debt limit statements law to permit counties to exclude tax increment bonds from the debt limit of the counties if a constitutional amendment authorizing the use of tax increment bonds and excluding tax increment bonds from determinations of the counties' funded debt is ratified.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnables counties to exclude tax increment bonds from debt limits, promoting fiscal flexibility and management under county budget constraints.85% confidence

Sub-Topics Business Taxes Debt & Bonds Tax Incentives

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in committee · Hawaii · House Dec 8, 2025

HB 260: RELATING TO TAXATION.

HB 260 would eliminate state taxes on gasoline and diesel fuel used in motor vehicles, directly affecting drivers and vehicle owners by reducing fuel costs. The bill requires fuel distributors to pass any tax savings directly to consumers, ensuring that the removal of state taxes lowers prices at the pump. This policy change focuses on concrete tax removal and mandatory price transparency for consumers, with no additional provisions or exemptions specified.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state fuel taxes, providing direct tax relief to consumers through mandatory price reductions at the pump.95% confidence

Sub-Topics Business Taxes Sales Tax State Budget

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in committee · Hawaii · House Dec 8, 2025

HB 520: RELATING TO TAXATION.

HB 520 would exempt tips received by employees from state income tax calculations, meaning tip income would no longer count toward an employee's taxable income. This directly affects service industry workers, such as servers and bartenders, who rely on tips as part of their earnings. The bill removes tips from gross income, adjusted gross income, and taxable income for state tax purposes. Currently pending in committee, the bill has not advanced beyond the referral stage in the 2025 session.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts service workers' tips from state income tax, providing direct tax relief for lower-income employees in the tipped industry.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts tips from state tax, increasing net earnings for tipped workers, directly supporting wage fairness and income stability for service industry employees.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Hawaii · House Jan 28, 2026

HB 2134: RELATING TO GENERAL EXCISE TAX.

HB 2134 exempts small business tenants from paying the general excise tax on income from leasing commercial property. This directly affects small businesses that rent physical space for operations, such as retail stores or offices. The bill removes the tax obligation on the gross income generated from these real property leases. It requires related adjustments to tax code language to implement the exemption. The bill is currently pending introduction as of January 23, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts small businesses from general excise tax, providing direct tax relief and supporting fiscal responsibility for small operations.95% confidence

Sub-Topics Business Taxes Sales Tax Tags Small Business

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in committee · Hawaii · Senate Feb 2, 2026

SB 3213: RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.

Restores the provision that makes references to the Internal Revenue Code's base-amount requirement inapplicable to the Research Activities Tax Credit, allowing all qualified research expenses to be claimed without regard to prior-year expenses. Increases the annual cap for the Research Activities Tax Credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap and removes restrictions, enhancing research tax incentives for businesses.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Hawaii · House Feb 2, 2026

HB 2464: RELATING TO TAXATION.

Establishes a family caregiver tax credit for nonpaid family caregivers. Requires the Department of Taxation to submit annual reports to the legislature. Appropriates moneys to the Executive Office on Aging. The tax credit applies to taxable years beginning after 12/31/2027. Effective 12/31/2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes caregiver tax credit (tax relief) and appropriates funds to aging services, advancing fiscal support for vulnerable populations and public programs.92% confidence ✓ HealthcareSupports HealthcareEstablishes tax credit for family caregivers (supporting unpaid healthcare assistance) and appropriates funds to Executive Office on Aging for healthcare-related services.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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in committee · Hawaii · House Jan 30, 2026

HB 2149: RELATING TO TAX HAVEN ABUSE.

Part I: Effective 1/1/2027, requires corporations to include in their income the income of all foreign subsidiaries to the State; applies the State's apportionment formula to determine the share of reported profits subject to the appropriate tax, which shall be deposited into the state general fund; and requires corporations to report all profits, losses, revenues, and inter-company transactions made and all taxes paid in other states. Part II: Establishes within DOTAX a Corporate Tax Law Task Force to annually review the State's corporate tax laws and recommend updates to close tax loopholes.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses corporate tax loopholes by requiring foreign subsidiary income reporting and applying state apportionment, directing revenue to general fund to increase state tax revenue.95% confidence

Sub-Topics Business Taxes State Budget Tax Incentives

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