Bill > HB1341

This bill establishes a tax credit program to incentivize insurers to provide full property coverage for condominium associations in Hawaii. Specifically, insurers can claim a nonrefundable tax credit of 20% of the insurance premium tax for providing comprehensive coverage (including windstorm, hurricane, hail, flood, fire, and localized perils) at 100% of the insurable value for condominium properties. Insurers incorporated in the state can receive an additional 10% tax credit, bringing their potential credit to 30%. The total annual tax credits are capped at $5 million, and credits can only be claimed once per structure. To qualify, insurers must be licensed in Hawaii and apply for a tax credit certificate from the commissioner, who will review applications and reserve credits on a first-come, first-served basis. The bill aims to address the challenges faced by aging condominium buildings that struggle to obtain insurance, which has been impacting homeownership and mortgage availability in Hawaii. The tax credit program will take effect for taxable years beginning after December 31, 2025, with the goal of encouraging more comprehensive insurance coverage for condominium associations and improving access to housing financing.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1341&year=2026