Budget & Taxes (Tax Credits)

Requires the Department of Business, Economic Development, and Tourism to provide public notice of certain information whenever a production obtains a permit or enters into a memorandum of agreement or understanding with DBEDT to film a visually recorded production at certain locations. Requires DBEDT to provide public notice of certain information whenever a production registers for pre-qualification or is determined to qualify for the Motion Picture, Digital Media, and Film Production Income Tax Credit and simultaneously post notice on a publicly accessible part of its website. Allows individuals to sign up to receive notice by electronic mail or postal mail.

Clarifies that references to the base amount in section 41, Internal Revenue Code of 1986, as amended, shall not apply to the tax credit for research activities, and that the tax credit for qualified research expenses may be claimed without regard to expenses in previous years. Increases the annual cap on the total amount of credits that may be certified by the Department of Business, Economic Development, and Tourism.

Increases the rooftop solar tax credit to forty five per cent for tax years beginning after December 31, 2025 through December 31, 2030. Establishes the Direct Solar Rebate Program to be administered by the Hawaii State Energy Office for low‑ and moderate-income households. Streamlines rooftop solar permitting and requires the counties to develop electronic application systems. Requires the Hawaii State Energy Office to enhance workforce development and coordinate with county permitting agencies. Authorizes the adoption of interim rules. Appropriates funds.

Part II: For taxable years beginning after 12/31/2025, establishes an Agroecological and Climate-Smart Farming Practices Tax Credit to be administered by the Department of Taxation. Part III: Establishes the Hawaii Farm to Families Program and requires the Department of Agriculture and Biosecurity to submit reports to the Legislature. Appropriates funds. Part IV: Requires the Department of Education to strengthen the State's farm to school meals program initiatives.

Amends the requirements for productions to qualify for the Motion Picture, Digital Media, and Film Production Income Tax to include completing at least fifteen per cent of the production's principal photography within the same taxable year the production is qualifying for the film tax credit and completing or committing to complete fifteen per cent of the production's post-production in the State within the same taxable year the production is qualifying for the film tax credit or later taxable years. Applies to taxable years beginning after 12/31/2026. Repeals 1/1/2033. Effective 7/1/3000. (HD1)

Requires an automated vehicle used by a motor carrier to transport passengers commercially to have a human supervisor present in the vehicle. Establishes an income tax credit to incentivize the training of supervisors for autonomous vehicles. Sunsets 12/31/2036. Applies to taxable years beginning after 12/31/2026. Effective 7/1/3000. (HD1)

Establishes an income tax credit for the purchase of electric garbage trucks by qualified taxpayers. Applies to taxable years beginning after 12/31/2024.

Establishes a tax credit for sustainable aviation fuel distribution in Hawaii to reduce greenhouse gas emissions. Provides $1 per gallon, increasing by 2 cents per additional 1 per cent emissions reduction, up to $2 per gallon. Caps total credits at $20,000,000 annually, with carryover provisions. Requires reporting to ensure transparency and compliance. Applies to taxable years after December 31, 2025, and sunsets on December 31, 2035.

Provides that a tax credit for low-income housing that exceeds the taxpayer's income tax liability for a taxable year may be used as a credit against the taxpayer's income tax liability in subsequent taxable years, but not after the tenth subsequent taxable year.

Amends the Motion Picture, Digital Media, and Film Production Income Tax Credit (tax credit) by, beginning for costs incurred after 12/31/2025, providing an additional credit to qualified productions with a workforce of at least eighty percent local hires; requiring each taxpayer claiming the tax credit to submit an independent third-party certification verifying certain information to the Department of Business, Economic Development, and Tourism; increasing the per-production cap amount to $20,000,000 and excluding qualified productions that incur at least $60,000,000 of qualified production costs from the per-production cap amount; changing the aggregate cap amount to $60,000,000; providing that, beginning for costs incurred after 12/31/2023, if the total amount of tax credits claimed in a year is less than the aggregate cap amount, the cap for the subsequent year shall be increased by the unclaimed amount; defining "streaming platform" and amending the definition of "qualified production" to include certain streaming productions; and extending the sunset date of the tax credit to 1/1/2038. Exempts from the general excise tax certain amounts received by a motion picture project employer from a client company that represent reimbursements for costs paid or incurred by the client company for reasonable employment-related costs of motion picture project workers or loan-out companies. (CD1)