Bill > SB2506

This bill establishes a temporary income tax credit for individuals and entities in Hawaii to help cover the costs of upgrading or converting a cesspool, which is a basic underground wastewater system that retains solids and allows liquids to seep into the ground, to a more modern septic system (a system with a tank and drainage field for natural biological decontamination), an aerobic treatment unit system (a system using aeration to treat wastewater), or connecting to a public sewer system. The credit is for qualified expenses, meaning costs directly related to these upgrades or connections, up to a maximum of $10,000 per taxpayer, with a special provision for residential large capacity cesspools (cesspools serving more than one dwelling) where the credit can be up to $10,000 per connected dwelling. The Department of Health will certify these upgrades and expenses, and as a pilot program, can certify no more than two residential large capacity cesspools. There's an overall cap of $5,000,000 in tax credits allowed statewide each year, but taxpayers who can't claim the credit due to this cap can carry it over to the next year. This tax credit program will be in effect for taxable years beginning after December 31, 2027, and will expire on December 31, 2032.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2506&year=2026