Bill > SB768

This bill creates a new refundable income tax credit for Hawaii residents who either install, repair, or place into service a water catchment system, or purchase water delivery services. The tax credit is designed to help residents in areas like the Ka?u region of Hawaii island that lack municipal water infrastructure. Specifically, taxpayers can claim a credit equal to the lesser of: (1) the costs of installing or repairing a water catchment system, (2) the costs of purchasing at least 250 gallons of water delivery services, or (3) $500. A water catchment system is defined as a rainwater collection system with a minimum storage capacity of 1,000 gallons on a residential property. Taxpayers can only claim one of these credit options per tax year, and any excess credit beyond their tax liability will be refunded. The credit must be claimed within 12 months after the end of the taxable year, and the tax director will develop the necessary forms and guidelines. The bill is set to apply to taxable years beginning after December 31, 2025, and aims to support water conservation, help economically precarious communities, and provide alternative water sources for residents without access to municipal water systems.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=768&year=2025