Bill > HB285

This bill establishes a tax credit program to incentivize insurers to provide full property coverage for condominium owners and associations in Hawaii. Specifically, insurers can claim a nonrefundable tax credit of 20% of the insurance premium tax for policies that provide 100% coverage against windstorms, hurricanes, hail, flood, fire, and other localized perils. An additional 10% tax credit is available for insurers incorporated within the state, bringing the potential total tax credit to 30%. The aggregate tax credit amount is capped at $50,000 per year, and can only be claimed once per structure, regardless of the number of policies written. To qualify, insurers must be licensed in Hawaii and must apply to the commissioner for a tax credit certificate, providing necessary documentation to prove eligibility. The tax credits will be available for taxable years beginning after December 31, 2025, and are designed to address the challenges faced by aging condominium buildings that struggle to obtain insurance, ultimately helping Hawaii residents access financing and maintain their properties.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=285&year=2026