Bill > HB889

This bill creates a refundable transient accommodations tax (TAT) credit for Hawaii residents to address what the legislature views as a double taxation issue. Specifically, the bill allows individual taxpayers to claim a tax credit equal to the full amount of transient accommodations taxes they paid while staying at accommodations within Hawaii during a taxable year. The credit is fully refundable, meaning that if the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded to the taxpayer, with a minimum refund of $1. The Hawaii Department of Taxation will be responsible for creating the necessary forms to claim the credit and may require proof of the TAT paid. Taxpayers must file claims for the credit, including any amended claims, by the end of the twelfth month following the taxable year. The bill is designed to provide relief to Hawaii residents who pay the transient accommodations tax when vacationing within the state, effectively reducing their tax burden. The new tax credit will apply to taxable years beginning after December 31, 2024.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=889&year=2026