Budget & Taxes (Income Tax)

in committee · Hawaii · Senate Jan 28, 2026

SB 2468: RELATING TO TAXATION.

SB 2468 would impose an additional tax (a surcharge) on individuals with taxable income exceeding $1,000,000. The revenue generated would fund the State Medicaid Program, but only if the Legislature approves the surcharge. This bill directly affects high-income earners by increasing their tax obligation. The measure is currently in early committee review stages and requires legislative approval to become law.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes surcharge on high earners to fund Medicaid, directly advancing state healthcare funding through targeted taxation.90% confidence ✓ HealthcareSupports HealthcareFunds State Medicaid Program via income surcharge on high earners, directly supporting healthcare access for low-income residents.90% confidence

Sub-Topics Business Taxes Income Tax State Budget Medicaid

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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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passed · Hawaii · Senate Feb 19, 2026

SB 2451: RELATING TO TAXATION.

SB 2451 eliminates the home mortgage interest deduction for second homes under Hawaii's income tax law. This change directly affects Hawaii taxpayers who own second homes and currently claim this tax break on their mortgage interest. The bill removes this specific deduction from the state tax code, meaning owners of secondary properties will no longer receive a tax benefit for mortgage interest paid on those homes. It also requires the state to submit regular reports to the Legislature about the bill's implementation and effects.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates home mortgage interest deduction for second homes, closing a tax loophole and increasing state revenue, aligning with fiscal responsibility.95% confidence

Sub-Topics Income Tax Tax Incentives

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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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