Bill > SB1462

This bill establishes a Historic Preservation Income Tax Credit that allows taxpayers to receive a 30% tax credit for substantial rehabilitation of certified historic structures in Hawaii. The credit applies to qualified rehabilitation expenditures that exceed 25% of the structure's assessed value, with an annual cap of $1,000,000 per year from 2025 to 2030. Taxpayers can use the credit against their income tax liability, and if the credit exceeds their current tax liability, they can carry it forward for up to ten years. To qualify, the rehabilitation must preserve the historic character of the building and be approved by the State Historic Preservation Division. The credit is available for structures listed in the Hawaii or National Register of Historic Places, or those determined eligible for inclusion. Taxpayers must notify the State Historic Preservation Division upon completion of rehabilitation, provide documentation of expenses, and receive a certification. The bill requires the division to submit periodic reports to the legislature evaluating the effectiveness of the tax credit. Notably, personal labor costs are not included in qualified rehabilitation expenditures, and if a taxpayer fails to comply with the requirements, the tax credit may be recaptured. The bill will take effect on July 1, 3000, apply to taxable years beginning after December 31, 2024, and will sunset on December 31, 2030.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1462&year=2026