Bill > HB1086

This bill creates a tax exemption for development activities related to homestead lots and housing for the Department of Hawaiian Home Lands (DHHL). Specifically, the bill exempts planning, design, financing, and construction activities from general excise and use taxes for projects that meet certain criteria, such as being part of a government assistance program, sponsored by a nonprofit organization providing housing for Hawaiian families, or creating affordable rental housing where at least 50% of units are for households at or below 80% of the area median income. The exemption applies to "qualified persons or firms" - any individual or organization with the necessary professional licenses - and covers various types of housing development, including new construction, moderate rehabilitation, and substantial rehabilitation. To claim the exemption, applicants must file claims with DHHL, which will then forward them to the Department of Taxation. The bill defines key terms like "homestead lot" (residential, agricultural, or pastoral land awarded under the Hawaiian Homes Commission Act) and provides context that these exemptions aim to support affordable housing opportunities for Native Hawaiians. The tax exemption will take effect on July 1, 3000.

Budget and Finance, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1086&year=2026