Bill > SB768

This bill establishes an "alternative water source income tax credit" for taxpayers in Hawaii, aiming to help residents in areas lacking municipal water infrastructure, such as parts of the Ka'u region on the Big Island, who often face economic hardship. The credit, applicable for taxable years beginning after December 31, 2026, allows individuals to claim a tax credit for either installing, putting into service, or repairing a "water catchment system" – defined as a system that collects rainwater from a surface and transports it to a storage container of at least 1,000 gallons on their residential property – or for purchasing "water delivery services," which means having fresh water delivered to their residential property. The credit is capped at $500 per taxable year, and if the credit exceeds a taxpayer's tax liability, the unused portion can be carried forward for up to five years. The bill also specifies that only one taxpayer can claim the credit for a property owned by multiple individuals in the same year and requires claims to be filed by the end of the twelfth month following the close of the taxable year. The Director of Taxation will provide necessary forms and may adopt rules to implement the credit, which will officially take effect on December 31, 2050.

Budget and Finance, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=768&year=2026