Budget & Taxes (Business Taxes)

in committee · Hawaii · House Jan 26, 2026

HB 1755: RELATING TO INCOME TAX.

HB 1755 would eliminate the state's individual income tax, meaning residents would no longer pay tax on personal earnings like wages or investments. This change would directly affect all state residents who currently pay income tax, including wage earners and those with taxable income. The bill's key provision is the removal of this tax obligation without specifying alternative revenue sources. The bill is currently in committee review after its introduction on January 21, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill explicitly eliminates state individual income tax, directly weakening tax revenue collection and opposing current taxation policies.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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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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passed · Hawaii · House Mar 10, 2026

HB 2391: RELATING TO TAXATION.

HB 2391 creates a temporary sales tax exemption for school supplies, meaning businesses selling these items would not collect the usual general excise tax during the holiday period. This directly affects consumers purchasing school supplies and the businesses selling them, as the bill requires retailers to pass any tax savings directly to shoppers. The key provision is a time-limited tax holiday where the state waives the sales tax on qualifying items, but businesses must lower prices for customers rather than keeping the savings. The policy aims to reduce costs for families buying school essentials during the holiday period. (Note: This is a policy change, not a procedural bill.)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary tax relief for school supplies, directly reducing consumer costs during holiday period. Aligns with tax relief for middle-income families without defunding or tax increases.95% confidence ✓ EducationSupports EducationTax exemption on school supplies lowers costs for families, directly improving access to educational materials for K-12 students during the holiday period.90% confidence

Sub-Topics Business Taxes Procurement Sales Tax

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passed · Hawaii · House Mar 12, 2026

HB 2214: RELATING TO TAX CREDITS.

HB 2214 creates a refundable income tax credit specifically for diaper purchases. It directly affects low-income parents or caregivers who buy diapers for children, providing financial relief for this essential expense. The credit is refundable, meaning recipients receive the full credit amount as cash even if they owe no income tax. This policy change adds a new, targeted tax benefit to the state's income tax code, replacing potential tax savings with direct cash assistance for eligible households.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for low-income diaper expenses, providing direct financial relief and targeting essential household costs for vulnerable families.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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in committee · Hawaii · Senate Feb 12, 2026

SB 3337: RELATING TO TAXATION.

SB 3337 would remove the state tax on gasoline and diesel fuel used in motor vehicles. This change would directly affect drivers and businesses that purchase these fuels, as they would no longer pay the state tax on each gallon. The bill’s key provision is eliminating the existing state tax rate applied to these fuels at the point of sale. The bill is currently in committee review, with a public hearing scheduled for February 12, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state fuel tax, providing direct tax relief to drivers/businesses, aligning with tax relief indicators for 'support' stance.95% confidence

Sub-Topics Business Taxes Sales Tax

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passed both · Hawaii · House May 1, 2026

HB 2546: RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.

Amends the tax credit for research activities by: allowing qualifying taxpayers to claim the credit for all qualified research expenses without regard to the amount of expenses for previous years; amending from March 31 to March 1 the deadline for qualified high technology businesses to submit to the Department of Business, Economic development, and Tourism written, certified statements identifying qualified expenditures and the tax amount of tax credits claimed in the previous taxable year; for any taxable year the annual aggregate cap is reached, requiring the credit to be divided between all qualified high technology businesses in proportion to the amount of qualified research expenses claimed; and requiring DBEDT to establish an annual application period and notify each qualified high technology business applicant of the credit amount certified. Applies to costs incurred beginning after 12/31/2025. Repeals the credit on 1/1/2029. Effective 7/1/3050. (SD2)

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap for research activities, providing tax relief to businesses and promoting innovation through expanded fiscal incentives.95% confidence

Sub-Topics Business Taxes Tax Credits

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passed · Hawaii · Senate Mar 10, 2026

SB 2362: RELATING TO TAXATION.

SB 2362 would eliminate a specific tax deduction for real estate investment trusts (REITs), requiring them to pay taxes on dividends they distribute to shareholders instead of deducting those payments. This change directly affects REITs, which are companies that own and operate real estate properties and typically rely on this deduction to reduce taxable income. The key provision removes the "dividends paid deduction" from the tax code, meaning REITs would no longer be able to subtract their dividend payments from their taxable earnings. This policy change would increase the tax burden on REITs without altering their operational structure.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates REIT tax deduction, closing a loophole to increase tax revenue from real estate entities, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Income Tax

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