Bill > HB577

This bill introduces a new tax credit for businesses that subsidize public transportation for their employees. Under this legislation, individual or corporate taxpayers can claim a tax credit for purchasing public transportation fares or passes for their employees, with the credit amount to be determined as a percentage of the total spent on these transportation costs. To be eligible, employers must have a place of business in Hawaii, and they cannot claim any additional tax deductions for the same expenses. The tax credit can be carried forward to offset future tax liabilities, but it is only available for taxable years between 2026 and 2029. The bill requires the director of taxation to create necessary forms, potentially request additional information from taxpayers, and submit detailed reports to the legislature in 2027, 2028, 2029, and 2030 about the number and value of credits granted. Public transportation is specifically defined as mass transit programs that are open to the general public and operated or contracted by the state or county. The bill will take effect on July 1, 3000, but will apply to taxable years beginning after December 31, 2025.

Budget and Finance, Business and Industry, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=577&year=2025