Bill > HB577

This bill creates a new tax credit for businesses that subsidize public transportation for their employees, allowing employers to receive a tax credit equal to the amount spent on purchasing public transit fares or passes for their workers. To qualify, businesses must have a place of business in Hawaii and cannot be claimed as a dependent by another taxpayer. The tax credit can be applied against the company's income tax liability, with any excess credit able to be carried forward to subsequent tax years, but only until December 31, 2030. Businesses cannot claim any other tax credit or deduction for the same transportation expenses. The director of taxation will be responsible for creating the necessary forms, verifying claims, and adopting rules to implement the program. Additionally, the director must submit reports to the legislature before the 2027, 2028, 2029, and 2030 legislative sessions, detailing the number and value of credits granted. The bill defines public transportation as mass transit systems that are open to the general public and operated or contracted by the state or county. The tax credit will be available for taxable years beginning after December 31, 2025, but not after December 31, 2029, with the act technically taking effect on July 1, 3000.