Bill > SB970

This bill creates a new tax credit for businesses located in counties with populations of 700,000 or more (which in Hawaii would be Honolulu County) that subsidize public transportation for their employees. The tax credit will allow qualifying employers to claim a credit equal to the amount they spend purchasing public transit fares or passes for their workers. Businesses can use the credit to offset their income tax liability, and if the credit exceeds their tax burden, they can carry forward the remaining credit to future tax years. The tax credit is available for taxable years beginning after December 31, 2024, but will expire for taxable years starting after December 31, 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 before the 2027, 2028, 2029, and 2030 legislative sessions. The reports must include information about the number and value of credits granted, the credits' overall impact, and a recommendation about continuing the program. The bill defines "public transportation" broadly to include mass transit operated by the state or county within counties with over 700,000 residents, and notably also includes bicycle share programs. The tax credit is designed to encourage employers to support sustainable transportation options for their employees.

Budget and Finance, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=970&year=2026