Bill > SB376

This bill establishes a new nonrefundable income tax credit for homeowners who make improvements that increase their residence's fire safety rating, as determined by their homeowner's insurance policy. The tax credit would allow taxpayers to deduct a certain percentage of their qualified home fire safety improvement costs from their state income tax liability, with specific limitations: the credit for an individual taxpayer cannot exceed a yet-to-be-specified dollar amount, and the total credits statewide cannot surpass another unspecified dollar amount in any fiscal year. Taxpayers must submit a sworn statement to the Department of Taxation detailing their qualified costs and claimed credits, and a third party must provide a certificate of approval for the improvements. The credit cannot be combined with other tax credits for the same expenses, and it will only apply to improvements made on or after January 1, 2026. To claim the credit, taxpayers must file a letter from the Department of Taxation verifying their qualified costs and credit amount with their tax return. The legislation is designed to incentivize homeowners to invest in fire safety improvements by offering a financial benefit through the tax system, with the goal of reducing fire-related risks and potential property damage.

Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=376&year=2026