Bill > HB916

This bill aims to expand the use of the state low-income housing tax credit by allowing developers to offset transient accommodations taxes (TAT) in addition to income taxes. Currently, the low-income housing tax credit can only be used against income taxes, but this legislation would permit developers to use these credits to reduce their TAT liability, specifically in the county where the qualified low-income housing building is located. The bill makes permanent a previous temporary provision (Act 129 from 2016) and is designed to increase the pool of potential investors in affordable housing projects by providing more flexible tax credit usage. The low-income housing credit is a tax incentive intended to encourage the construction of housing for lower-income households by offering developers tax credits when they reserve a portion of their housing developments for these populations. By allowing credits to be applied against transient accommodations taxes, the bill seeks to make low-income housing development more financially attractive and potentially increase the availability of affordable housing. The bill specifies that tax credits can only be used against TAT in the same county as the qualified low-income building, and it will apply to taxable years beginning after December 31, 2025.

Budget and Finance, Business and Industry, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=916&year=2026