The TURBO Act expands tax-exempt financing options for specific transportation projects to encourage investment in urban transit and freight infrastructure. It directly affects state and local governments issuing bonds to fund these initiatives by raising the maximum borrowing limit for highway and freight transfer facilities from $30 billion to $45 billion. Additionally, the bill allows tax-exempt bonds to be used for purchasing rolling stock like trains and permits high-speed intercity rail projects to have a maximum speed limit of 110 miles per hour instead of 150. These changes apply to any bonds issued after the law is enacted.
This bill requires the IRS to obtain written approval from a supervisor or a specific penalties office before imposing penalties or disallowing tax credits. The approval must be secured before the agency sends the first notice to a taxpayer that allows them to appeal the decision. Additionally, the legislation defines specific timeframes for disallowing certain tax credits and mandates that the Treasury Department publish annual reports detailing how penalties are assessed and enforced. These changes take effect twelve months after the bill is enacted, with the reporting requirement beginning two years later.
This bill establishes a state-funded financial assistance program to cover colorectal cancer screenings and necessary follow-up treatments for Hawaii residents who are uninsured, have inadequate health coverage, or are ineligible for Medicaid. It mandates that all health insurance policies in the state must cover colorectal cancer screenings using approved methods without requiring deductibles, copayments, or other cost-sharing fees. Additionally, the legislation requires insurance providers to inform their customers about the risks of undiagnosed colorectal cancer and encourages them to consult with physicians regarding screening options. The Department of Human Services is tasked with creating an application process for this program, which is initially funded with $1.8 million for the 2026-2027 fiscal year.
On July 15, 2026, the Governor of Hawaii returned Senate Bill 2600 to the Legislature after vetoing a specific funding provision. The bill originally sought to transfer $50 million from the state's general fund into the Emergency and Budget Reserve Fund to comply with constitutional requirements for disposing of excess revenue. The Governor objected to this transfer, arguing that the reserve fund is already well-funded and that the money should be retained for other critical state needs. Consequently, the Governor used his line-item veto authority to reduce the appropriation for the reserve fund to just $1, effectively preventing the transfer of the $50 million.
This bill establishes an income tax credit for film and digital media productions operating in Hawaii to encourage local investment in the industry. The credit provides a percentage of qualified production costs, offering 22% for projects in counties with over 700,000 residents and 27% for those in smaller counties, with an additional 5% bonus for productions that hire at least 80% local workers. To claim the credit, producers must submit sworn statements and independent third-party certifications detailing their spending and hiring practices to state agencies. The total credit available per production is capped at $20 million, though this limit does not apply to projects with at least $60 million in qualified costs, while the overall annual credit pool is set at $60 million.
This bill directs the state to increase Medicaid funding for residential care services in community foster family homes and expanded adult residential care homes. The legislation appropriates $1.7 million for the 2026-2027 fiscal year to raise reimbursement rates to the "medium" level identified in a 2022 study, addressing previous funding gaps that hindered providers from offering employee benefits. The Department of Human Services must secure the maximum available federal matching funds and explore other private grants before spending the money. These changes are designed to help care providers operate sustainably and expand options for older Hawaiians who need long-term care closer to home.
This bill modernizes Hawaii's enterprise zone program to better support local businesses by expanding the range of eligible activities and updating qualification rules. It allows local manufacturers that sell directly to retailers to qualify for benefits, adds new eligible sectors such as aerospace technology and specific medical services, and permits the state to designate up to two census tracts on state land as enterprise zones if they contain innovation enterprises. Additionally, the bill requires the Department of Business, Economic Development, and Tourism to conduct a comprehensive review of the program in consultation with the Department of Taxation and report its findings to the legislature. These changes aim to revitalize neighborhoods and promote job creation and preservation for local companies in designated areas.
This bill, signed into law as Act 215, shifts the authority to approve general excise tax exemptions for affordable housing projects from individual counties to the state's Hawaii Housing Finance and Development Corporation. Beginning January 1, 2027, the state agency will certify these tax incentives for developments that utilize county housing programs, aiming to better offset rising construction costs and interest rates. The legislation also grants counties expanded powers to develop, finance, and construct low- and moderate-income housing, including the ability to make loans, guarantee mortgages, and acquire land, while prohibiting counties from issuing state general obligation bonds for such projects. These changes are designed to leverage both state and local resources to address Hawaii's ongoing housing shortage by streamlining the approval process for affordable rental housing.
This bill, signed into law by Governor Josh Green on July 13, 2026, modifies how school impact fees are applied to residential developments in Hawaii to address housing costs. It directly affects developers and housing projects by expanding exemptions from these fees for smaller developments with fewer than 500 units, affordable housing, and other specific property types. The legislation also clarifies the procedures for paying fees in lieu of land dedications and removes previous reporting requirements while reorganizing related fee accounts. Ultimately, the act aims to reduce financial barriers for smaller housing projects while maintaining contributions from larger developments that significantly increase school enrollment.
This bill directs the State of Hawaii to transfer $50 million from the general fund into the emergency and budget reserve fund for the 2026-2027 fiscal year. The action is taken to comply with a constitutional requirement to dispose of excess tax revenues when specific conditions are met for two consecutive years. By moving the funds into a reserve account, the state sets aside money to be used as a supplemental source during future emergencies, economic downturns, or unexpected revenue shortfalls. The law takes effect on July 1, 2026, and applies to the state's overall budget management rather than targeting specific individuals or agencies.
