Bill > SB2525

This bill reestablishes a tax credit for homeowners who upgrade, convert, or connect their cesspools, which are systems that discharge raw sewage into the ground and pose a significant threat to Hawaii's water resources. The credit allows taxpayers to deduct a portion of their "qualified expenses" – the necessary costs directly incurred for these improvements – from their income tax liability. The credit amount is the lesser of thirty-five percent of qualified expenses or a specific cap amount, which varies depending on the type of improvement: $14,000 for upgrading to a septic system, $17,500 for upgrading to an aerobic treatment unit system, and $28,000 for connecting to a sewerage system. Taxpayers who have received other grants for these improvements are ineligible for this tax credit. The credit can be carried forward to future years if it exceeds the tax liability and must be claimed by the end of the twelfth month following the close of the taxable year. This provision applies to taxable years beginning after December 31, 2026.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2525&year=2026