Bill > HB937

This bill provides a tax exemption for Restaurant Revitalization Fund (RRF) grants received by eligible businesses during the COVID-19 pandemic, specifically those grants provided under the American Rescue Plan Act of 2021. The legislation exempts these federal grants from Hawaii's general excise tax and requires the state to refund any general excise tax that was previously paid on such grants, retroactive to taxable years beginning after March 11, 2021. The bill's background notes that while previous COVID-19 relief programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Emergency Advances (EIDL) were already exempt from state general excise tax, the Department of Taxation had initially indicated that RRF grants would not receive the same treatment. By passing this bill, the legislature aims to provide consistent tax treatment for pandemic-related small business relief grants, recognizing the economic challenges faced by food and beverage businesses during the pandemic and ensuring they are not burdened with additional tax obligations on critical financial assistance.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=937&year=2026