Budget & Taxes (Income Tax)

in committee · Hawaii · Senate Jan 28, 2026

SB 2597: RELATING TO TAXATION.

SB 2597 creates an income tax credit for dairy farmers who convert their operations to hog farming. The credit covers costs for building or upgrading facilities like pens, waste systems, or feed storage during the conversion process. This directly affects dairy farmers seeking to switch livestock operations by reducing their state income tax burden for these specific infrastructure expenses. The policy provides a concrete tax benefit for eligible conversion costs without altering broader tax rates or policies.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates targeted income tax credit for farm conversion costs, directly reducing tax burden for eligible businesses as a form of tax relief.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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passed both · Hawaii · House Apr 6, 2026

HB 2049: RELATING TO HOUSING.

Restructures the conveyance tax to a marginal rate system for the sale of properties with residential use, adjusts the tax for multifamily properties to reflect value on a per-unit basis, and applies a cost-of-living adjustment to conveyance tax rates. Allocates revenues from conveyance tax collections. Allocates a portion of conveyance tax collections to the Dwelling Unit Revolving Fund to fund infrastructure programs in areas that meet minimum standards of transit-supportive density. Allocates a portion of conveyance tax revenues to the Hawaii Agricultural Development Revolving Fund, Special Land and Development Fund, and Hawaiian Home Lands Infrastructure and Housing Special Fund. Establishes and appropriates funds out of the Hawaiian Home Lands Infrastructure and Housing Special Fund. Authorizes the Hawaii Agricultural Development Revolving Fund to be used to acquire land. Effective 7/1/3000. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesRestructures conveyance tax to fund infrastructure via Dwelling Unit Revolving Fund, aligning with fiscal responsibility and public service funding.90% confidence ✓ HousingSupports HousingAllocates conveyance tax revenue to Dwelling Unit Revolving Fund for infrastructure in transit-oriented development areas, directly funding housing-related infrastructure projects.95% confidence ✓ TransportationSupports TransportationAllocates conveyance tax revenue to fund infrastructure in transit-oriented development areas, directly supporting transportation infrastructure through targeted funding.85% confidence

Sub-Topics Income Tax Affordable Housing Housing Finance Property Taxes

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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 · Senate Dec 8, 2025

SB 236: RELATING TO CESSPOOLS.

Part II: Requires certain priority level 1 cesspools to be upgraded, converted, or connected before 1/1/2035, and priority level 2 cesspools to be upgraded, converted, or connected before 1/1/2040, rather than before 1/1/2050. Part III: Appropriates funds to the Department of Health to implement the Cesspool Compliance Pilot Grant Project established pursuant to Act 153, Session Laws of Hawaii 2022. Part IV: Establishes an income tax credit for the cost of upgrading or converting a qualified cesspool to a Director of Health-approved wastewater system or connecting to a sewerage system, and requires the Auditor to periodically review the tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates funds for DOH implementation and establishes income tax credit for cesspool upgrades, providing tax relief and funding essential environmental compliance program.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Hawaii · House Dec 8, 2025

HB 882: RELATING TO INCOME TAX CREDITS.

Amends the amount of total income tax credits available. Increases the annual per production and aggregate caps. Provides the State with alternative marketing opportunities in lieu of a shared-card, end-title screen credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases film industry tax credit caps, expanding tax incentives for economic diversification. Directly modifies tax credit structure to support industry growth and state marketing opportunities.92% confidence

Sub-Topics Income Tax State Budget Tax Incentives

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in committee · Hawaii · Senate Feb 2, 2026

SB 3172: RELATING TO TAXATION.

Requires the Department of Taxation to accept, evaluate and make determinations on offers in compromise under certain conditions, including for offers requiring the Governor's approval. Amends the income tax and general excise tax statute of limitation periods for collection or commencement of proceedings to six years, except in cases of false or fraudulent returns, or intent to evade tax. Effective 1/1/2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax collection statute of limitations to 6 years, strengthening revenue collection and fiscal management per tax enforcement provisions.85% confidence

Sub-Topics Income Tax Sales Tax

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in committee · Hawaii · House Feb 2, 2026

HB 2623: RELATING TO TAXATION.

HB 2623 establishes a new tax surcharge on high-income individuals, estates, and trusts, applying to taxable years starting after December 31, 2026. The bill directly affects high earners and large wealth holders by imposing an additional tax on their "wealth proceeds," though specific income thresholds are not detailed in the abstract. Key provisions include defining the tax base as wealth-related income or assets and setting a future effective date to allow for planning. The bill is currently in early committee review, having been introduced and passed its first reading in January 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new tax surcharge on high-income earners and wealth holders, increasing state revenue for budget purposes.95% confidence

Sub-Topics Business Taxes Income Tax State Budget

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in committee · Hawaii · House Dec 8, 2025

HB 354: RELATING TO EMERGENCY MANAGEMENT.

Appropriates funds for the Office of the Governor, in collaboration with the Insurance Division of the Department of Commerce and Consumer Affairs, to: (1) plan and administer income tax credits relating to emergency management or disaster preparedness and grants for low-income taxpayers to fortify their residential real property; (2) oversee the development of emergency shelters; and (3) hire necessary personnel.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides income tax credits for low-income taxpayers and appropriates funds for disaster preparedness programs, aligning with tax relief and fiscal responsibility indicators.95% confidence

Sub-Topics Income Tax Tags Emergency Management

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in committee · Hawaii · House Dec 8, 2025

HB 690: RELATING TO TAXATION.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for water conservation, providing tax relief under Budget & Taxes policy90% confidence

Sub-Topics Income Tax Tax Credits

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passed both · Hawaii · House May 1, 2026

HB 1591: RELATING TO HEALTH CARE.

Expands the definitions of "preceptor" and "volunteer‑based supervised clinical training rotation" applicable to the Healthcare Preceptor Tax Credit to improve accessibility for providers to receive income tax credits for acting as preceptors, including removing "primary care" from the criteria to qualify as a preceptor. Adds physician assistants, dietitians, and social workers to the list of preceptors and eligible students. Expands eligibility for the tax credit to include accredited residency programs that require preceptor support. Adds the Director of Health and representatives of residency programs with eligible students to the Preceptor Credit Assurance Committee. Applies to taxable years beginning after 12/31/2026. Effective 7/1/2050. (SD2)

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility for healthcare preceptors, providing tax relief to incentivize provider participation in clinical training programs.95% confidence ✓ HealthcareSupports HealthcareExpands tax credit eligibility for healthcare preceptors (including PAs/social workers), removing barriers to increase provider training and accessibility.95% confidence

Sub-Topics Income Tax Tax Credits Primary Care

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