Bill > SB651

This bill establishes new requirements for tax expenditures (tax credits, deductions, exemptions, and other preferential tax treatments) in Hawaii, mandating that any new or modified tax expenditure law must include a comprehensive set of details. These details include an explanation of the intent behind the tax expenditure, an analysis of its economic and employment benefits compared to its cost, a maximum duration of 36 months, and static revenue estimates for each fiscal year. For existing tax expenditures being modified or extended, the bill requires additional information such as the total cost over the previous three years, revenue estimates if the expenditure were repealed, and an analysis of its effectiveness in achieving its intended goals. The bill also introduces provisions for public disclosure of certain tax expenditure information, allowing the release of the claimant taxpayer's identity and the amount of tax expenditure claimed for specific types of tax incentives, such as renewable energy credits, film production credits, and agricultural tax credits. The director of the relevant state agency is tasked with adopting rules to implement these new requirements, and the bill defines key terms like "static revenue estimate" and provides a comprehensive list of tax expenditures subject to the new disclosure rules.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=651&year=2026