Bill > SB697

This bill establishes a nonrefundable income tax credit for homeowners who retrofit their primary residences with wind-resistant devices to better prepare for potential hurricane damage. The bill is motivated by findings that climate change is increasing hurricane risks in Hawaii, with more intense storms potentially occurring annually by 2080 and existing refuge areas unable to shelter all residents. Specifically, the tax credit will cover a percentage of actual retrofit costs, with the exact percentage and maximum credit amount to be determined by the insurance commissioner. To qualify, taxpayers must apply to the Department of Commerce and Consumer Affairs for pre-certification before beginning work, and the department will limit credit certifications to 2,000 in the first year and 4,000 in the second year. Taxpayers can only claim the credit once, cannot claim other credits for the same expenses, and can carry forward any excess credit to subsequent tax years. The Department of Taxation will create necessary forms and may require proof of expenses. The tax credit applies to taxable years beginning after December 31, 2025, and will sunset on January 1, 2028, with a delayed implementation date of July 1, 2050.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=697&year=2026