Budget & Taxes (Tax Credits)

passed · Hawaii · Senate Dec 8, 2025

SB 1260: RELATING TO AGRICULTURE.

SB 1260 creates a tax credit for farmers who adopt agroecological and climate-smart farming practices, directly benefiting agricultural producers who implement these methods. The credit applies to taxable years starting after December 31, 2025, providing financial incentive for practices that improve soil health and reduce emissions. This policy change shifts tax treatment to reward specific sustainable farming techniques without altering existing agricultural regulations.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for sustainable farming, providing tax relief to agricultural producers without altering regulations.90% confidence ✓ EnvironmentSupports EnvironmentCreates tax credit for climate-smart farming practices reducing emissions and improving soil health, directly advancing environmental protection goals.95% confidence

Sub-Topics Tax Credits Tags Agriculture

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in committee · Hawaii · House Jan 30, 2026

HB 2174: RELATING TO TAXATION.

HB 2174 removes the expiration date for Act 163 from Hawaii's 2023 legislative session, making that tax law permanent. It directly affects Hawaii's tax code by preventing Act 163 from automatically ending on its original sunset date. The bill's key mechanism is simply repealing the specific expiration provision in Act 163. This change ensures the tax provisions established by Act 163 remain in effect indefinitely without requiring further legislative action.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently extends tax credits for dependents, cost of living, and food, providing ongoing relief to lower/middle-income households.95% confidence

Sub-Topics Tax Credits

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in committee · Hawaii · Senate Feb 17, 2026

SB 2746: RELATING TO TAXATION.

SB 2746 creates an income tax credit for individuals covering medical travel costs not paid by insurance, such as trips to specialists or treatments outside their local area. This directly affects people with significant out-of-pocket medical travel expenses who lack insurance coverage for those costs. The credit is set to expire on January 1, 2031, as it includes a sunset provision. The bill was introduced on January 23, 2026, and has advanced to committee referral.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for medical travel costs, providing tax relief to lower/middle-income individuals with out-of-pocket medical expenses.90% confidence ✓ HealthcareSupports HealthcareBill creates tax credit for uncovered medical travel costs, directly improving patient access to specialists/treatments outside local area and expanding coverage for out-of-pocket expenses.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Insurance

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in committee · Hawaii · Senate Feb 17, 2026

SB 2027: RELATING TO SUSTAINABLE AVIATION FUEL TAX CREDIT.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes a new tax credit mechanism ($1-$2/gal) with annual cap ($20M), directly implementing tax policy to incentivize sustainable aviation fuel under state fiscal framework.95% confidence ✓ EnergySupports EnergyProvides tax credit for sustainable aviation fuel to reduce emissions, promoting renewable energy adoption in aviation sector.95% confidence ✓ EnvironmentSupports EnvironmentBill explicitly establishes tax credits to reduce greenhouse gas emissions via sustainable aviation fuel, with incentives tied to emissions reductions and capped funding for environmental compliance.95% confidence ✓ TransportationSupports TransportationEstablishes tax credit for sustainable aviation fuel to reduce emissions, directly promoting sustainable transportation practices within aviation infrastructure.95% confidence

Sub-Topics Tax Credits Climate Change Airports Transportation Funding

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passed both · Hawaii · Senate Apr 20, 2026

SB 2376: RELATING TO THE RENEWABLE FUELS PRODUCTION TAX CREDIT.

Expands the provisions of the renewable fuels production tax credit. Applies to taxable years beginning after December 31, 2025. Effective 7/1/3000. (HD2)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies and expands eligibility for renewable fuels tax credit, creating tax incentives for qualifying producers within the state.90% confidence ✓ EnergySupports EnergyClarifies in-state renewable fuels production eligibility for tax credit, extending incentives to promote local renewable energy development.95% confidence ✓ EnvironmentSupports EnvironmentProvides tax incentives for in-state renewable fuel production, promoting clean energy adoption and reducing fossil fuel reliance per bill's tax credit provisions.95% confidence

Sub-Topics Tax Credits Renewable Energy

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in committee · Hawaii · Senate Feb 2, 2026

SB 3217: RELATING TO TAXATION.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases annual cap on research tax credits, expanding tax relief for businesses under tax policy.90% confidence

Sub-Topics Business Taxes Tax Credits

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in committee · Hawaii · House Jan 28, 2026

HB 2064: RELATING TO CESSPOOLS.

Provides a temporary income tax credit for the cost of upgrading or converting a cesspool to a septic system or an aerobic treatment unit system or connecting to a sewer system. Permits the Department of Health, as a pilot program, to certify no more than two residential large capacity cesspools. Applies to taxable years after 12/31/2027. Sunsets 12/31/2032.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides income tax credit for cesspool upgrades, reducing tax burden for homeowners - tax relief aligning with support indicators.90% confidence ✓ EnvironmentSupports EnvironmentBill incentivizes cesspool upgrades to prevent groundwater pollution, directly reducing environmental harm from outdated sewage systems.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Hawaii · Senate Feb 2, 2026

SB 3283: RELATING TO TAXATION.

Amends the research activity tax credit so that references to the base amount in section 41 of the Internal Revenue Code shall not apply and credit for all qualified research expenses may be taken without regard to the amount of expenses for previous years. Increases the annual aggregate cap for the research activity tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap and removes restrictions, providing greater tax relief for research activities.95% confidence

Sub-Topics Business Taxes Tax Credits

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signed · Hawaii · House Jul 9, 2026

HB 1920: RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

Clarifies that, for tax credits issued after 7/1/2026, a partner or member that is a partnership or limited liability company that has been allocated a Low-Income Housing Tax Credit may either further allocate the credit or transfer, sell, or assign all or a portion of the credit to any taxpayer. Extends the sunset date of Act 129, SLH 2016, relating to the Low-Income Housing Tax Credit, until 12/31/2032. (CD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends low-income housing tax credit program, providing tax relief for affordable housing development and maintaining funding for essential housing programs.90% confidence ✓ HousingSupports HousingExtends LIHTC program until 2032 and allows credit transfers, enabling more affordable housing development through tax incentives.95% confidence

Sub-Topics Tax Credits Affordable Housing Housing Finance

passed both · Hawaii · House Mar 30, 2026

HB 2017: RELATING TO AGRICULTURE.

Establishes a nonrefundable income tax credit for certain agricultural investment costs incurred for agricultural activities conducted on Hawaiian home lands. Applies to costs incurred after 12/31/2026. Effective 7/1/3000. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit for agricultural costs, providing tax relief to farmers and landowners under specified categories, directly advancing tax policy within Budget & Taxes.95% confidence

Sub-Topics Income Tax Tax Credits Tags Agriculture

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