Bill > HB690

This bill creates a new refundable income tax credit for Hawaii residents who install, repair, or use water catchment systems, or who purchase water delivery services, primarily aimed at supporting communities with limited water infrastructure, such as parts of the Ka?u region on Hawaii island. Specifically, taxpayers can claim a credit equal to the lesser of their actual costs for installing or repairing a water catchment system (which must have a minimum 1,000-gallon storage capacity), the cost of purchasing at least 250 gallons of water delivery services, or $500. Taxpayers can only claim one of these credit options per taxable year, and if the credit exceeds their tax liability, they will receive the difference as a refund (with a minimum refund of $1). The credit can be claimed until the end of the twelfth month following the close of the tax year, and the tax director will develop necessary forms and guidelines. The bill is set to apply to taxable years beginning after December 31, 2025, and is motivated by the legislature's recognition of water scarcity challenges in certain regions and the potential benefits of water catchment systems, including water conservation, flood mitigation, and energy preservation.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=690&year=2026