Bill > HB1341

This bill establishes a tax credit incentive program for insurance companies that provide full property coverage to condominium owners and associations in Hawaii. Specifically, insurers can claim a nonrefundable tax credit of 20% of the insurance premium tax for policies that cover 100% of a condominium's insurable value, including protection against windstorms, hurricanes, hail, floods, fire, and other localized perils. Insurers incorporated in Hawaii can claim an additional 10% tax credit, bringing their total potential credit to 30%. The bill aims to address challenges in the Hawaii condominium market, where many older buildings struggle to obtain comprehensive insurance coverage, which can impede home sales and mortgage financing. The total tax credits available are capped at $5 million per year, and insurers must apply for a tax credit certificate from the commissioner, who will review and approve applications on a first-come, first-served basis. Each structure can only receive the credit once, and insurers must file their claims within 12 months of the end of the taxable year. The tax credit program will begin applying to taxable years starting after December 31, 2025, with the goal of improving insurance accessibility and affordability for Hawaii's condominium owners.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1341&year=2025