Bill > SB1130

This bill provides a temporary exemption from the Hawaii general excise tax (GET) for construction rebuilding materials used in federally declared disaster areas, specifically for residential and commercial properties that need to be rebuilt or reconstructed. The exemption applies only to materials purchased between July 1, 2025, and December 31, 2028, and covers common construction materials like lumber, steel, concrete, roofing materials, plumbing fixtures, and electrical systems. To qualify, the disaster declaration must have existed as of August 8, 2023, and a third-party certification will be required to validate the exemption. The bill aims to alleviate financial burdens on homeowners and businesses rebuilding in disaster-impacted areas, where construction costs have become increasingly expensive, by reducing the tax burden on essential rebuilding materials. The legislation recognizes the challenges faced by communities in recovering from catastrophic events, such as the Los Angeles fires in January 2025, and seeks to support timely reconstruction efforts. The tax exemption will automatically expire on December 31, 2028, and will take effect on January 1, 2026.

Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1130&year=2026