Bill > SB697

This bill establishes a nonrefundable income tax credit to help Hawaii homeowners retrofit their residences with wind-resistant devices in response to increasing hurricane risks caused by climate change. The legislation is motivated by findings that warmer ocean waters are causing more frequent and intense hurricanes, with predictions of Category 5 hurricanes potentially occurring annually by 2080. The tax credit will allow eligible taxpayers to claim a percentage of their wind resistance retrofit project costs, with pre-certification required through the Department of Commerce and Consumer Affairs. The insurance commissioner will determine specific wind resistance standards, and the Department of Taxation will manage the credit's implementation. The credit is limited to 2,000 credits in the first year and 4,000 in the second year, cannot be claimed alongside other credits for the same expenses, and can be carried forward if it exceeds the taxpayer's current tax liability. The program will apply to taxable years beginning after December 31, 2025, and will sunset on January 1, 2028, with a surprisingly distant effective date of July 1, 2050. The legislature views this as a moral obligation to help residents prepare for potentially catastrophic hurricane risks and protect both current and future generations.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=697&year=2025