Budget & Taxes (Business Taxes)

passed · Hawaii · Senate Feb 20, 2026

SB 2884: RELATING TO TAXATION.

Establishes a nonrefundable individual income tax credit for a certain percentage of expenses paid to retrofit a residence with wind resistive devices or to purchase, install, or construct, a hurricane shelter on the taxpayer's property. Reduces the general excise tax rate on the gross proceeds or income from the sale of a concrete high-rise certified hurricane-resistant residential project or certain hurricane-resistant components of the project. Applies to taxable years beginning after 12/31/2026. Sunsets 12/31/2030. Effective 7/1/2050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit and rate reduction for hurricane-resistant home improvements, offering tax relief while incentivizing safety measures within state tax policy.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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passed · Hawaii · House Dec 8, 2025

HB 1077: RELATING TO ECONOMIC DEVELOPMENT.

Increases the transient accommodations tax and allocates a portion of the tax to the general fund for projects that address climate change impacts and advance economic development and revitalization. Effective 7/1/3000. (HD2)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases transient accommodations tax and allocates revenue to general fund for climate/economic projects, directly funding government initiatives via tax revenue.95% confidence ✓ EnergySupports EnergyBill allocates transient tax funds to climate change projects, which typically include renewable energy and clean infrastructure investments.95% confidence ✓ EnvironmentSupports EnvironmentAllocates transient accommodations tax revenue to climate change impact projects, explicitly funding environmental initiatives under economic development.95% confidence

Sub-Topics Business Taxes State Budget Tax Incentives Climate Change Tags Economic Development

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in committee · Hawaii · Senate Jan 28, 2026

SB 2562: RELATING TO THE RENTAL MOTOR VEHICLE SURCHARGE TAX.

SB 2562 requires rental companies to prorate the surcharge tax (an additional fee on vehicle rentals) when a customer rents a vehicle for fewer than six hours in a single day. This change directly affects short-term renters (e.g., those using a car for a few hours for errands or a quick trip) and the rental companies that collect the tax. Instead of charging the full daily surcharge for partial-day rentals, the tax would be calculated based on the actual rental duration. The bill aims to reduce the tax burden for brief rental periods while maintaining the tax structure for longer rentals.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill prorates surcharge tax for short rentals, providing tax relief to customers and aligning with support indicators for middle-income tax relief.85% confidence

Sub-Topics Business Taxes Fees & Licensing Sales Tax

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passed · Hawaii · House Mar 10, 2026

HB 1813: RELATING TO TAXATION.

HB 1813 amends and repeals specific exemptions within the state's general excise tax and use tax laws. This bill changes how certain tax exemptions apply, potentially affecting businesses and individuals who currently qualify for those exemptions. The legislation does not create new taxes or directly fund programs, but alters existing tax rules by removing or modifying eligibility criteria for exemptions. As the bill is very recent (introduced January 22, 2026), specific exemptions impacted or affected entities are not detailed in the provided context.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill repeals tax exemptions, closing loopholes and broadening tax base to increase revenue, supporting fiscal responsibility.85% confidence

Sub-Topics Business Taxes Fees & Licensing Sales Tax

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in committee · Hawaii · House Feb 2, 2026

HB 2526: RELATING TO TAXATION.

Establishes a nonrefundable individual income tax credit for a certain percentage of expenses paid to retrofit a residence with wind resistive devices or to purchase, install, or construct, a hurricane shelter on the taxpayer's property. Reduces the general excise tax rate on the gross proceeds or income from the sale of a concrete certified hurricane-resistant residential project or certain hurricane-resistant components of a high-rise condominium. Applies to taxable years beginning after 12/31/2026. Sunsets 12/31/2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits and rate reductions for hurricane-resistant home improvements, offering direct tax relief under taxation policies.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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in committee · Hawaii · Senate Jan 30, 2026

SB 2792: RELATING TO GENERAL EXCISE TAX EXEMPTIONS.

Establishes a general excise tax exemption for the gross proceeds or income from the sale of groceries that are eligible under the Supplemental Nutrition Assistance Program (SNAP), regardless of the means of purchase or the SNAP eligibility of the purchaser. Establishes a general excise tax exemption for the gross proceeds or income from the sale of nonprescription drugs.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts SNAP-eligible groceries and nonprescription drugs from general excise tax, providing tax relief to low-income residents and aligning with fiscal support for essential needs.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Hawaii · Senate Feb 10, 2026

SB 3312: RELATING TO HOUSING.

SB 3312 creates a state income tax credit program to encourage commercial property owners to convert vacant or underused buildings (like stores or offices) into residential housing. The bill directly affects property owners who complete such conversions, offering them a tax credit to offset costs. Key provisions include appropriating state funds to cover the credit value and establishing eligibility criteria for qualifying properties. This policy aims to increase housing supply by making commercial-to-residential conversions financially attractive, without specifying target locations or housing types.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit (taxation) and appropriates state funds (budget), directly using both tools to fund housing conversion program.95% confidence ✓ HousingSupports HousingBill creates tax credits for converting commercial buildings to residential housing, directly increasing housing supply through financial incentives to property owners.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Affordable Housing Historic Preservation Housing Finance

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in committee · Hawaii · House Dec 8, 2025

HB 522: RELATING TO THE GENERAL EXCISE TAX.

HB 522 establishes a monthly tax holiday for small businesses in the state, waiving the general excise tax on the first Saturday of each month. This directly affects small businesses operating within the state, providing them with a recurring day of tax relief. The key mechanism is an automatic exemption on the first Saturday of every month, requiring no additional action from businesses. The bill creates a consistent, predictable schedule for this tax relief without altering tax rates or creating new fees.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides recurring tax relief for small businesses by waiving excise tax on first Saturdays, reducing their tax burden - directly aligns with tax relief indicators for support.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Hawaii · Senate Dec 8, 2025

SB 349: RELATING TO CAPITAL GAINS.

SB 349 would tax profits from selling assets (like stocks or property) at the same income tax rate applied to regular wages and salaries. This change would directly affect individuals and businesses that earn capital gains income, such as investors or sellers of real estate. The bill's key provision aligns capital gains taxation with ordinary income tax rates, rather than using a separate lower rate. The bill is currently pending in the 2026 Regular Session after being introduced in January 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesAligns capital gains tax with ordinary income rates, closing a loophole that benefits high earners, promoting fiscal responsibility and fair taxation.90% confidence

Sub-Topics Business Taxes Income Tax State Budget

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in committee · Hawaii · Senate Jan 28, 2026

SB 2456: RELATING TO THE TAXATION OF LIQUOR.

SB 2456 increases the state tax on liquor sales and establishes a mechanism to automatically adjust this tax rate annually based on inflation. The bill directly affects liquor retailers, distributors, and consumers, as the tax increase would raise costs for these businesses and potentially lead to higher prices for consumers. Key provisions include setting a new base tax rate and linking future adjustments to the official inflation index to maintain revenue levels over time. This bill is currently in the early stages of the legislative process (introduced and passed first reading on January 22, 2026).

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases state liquor tax revenue with automatic inflation adjustments, directly boosting budget through higher taxation.95% confidence

Sub-Topics Business Taxes Sales Tax

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