RELATING TO TAXATION.

HB105

HOUSE OF REPRESENTATIVES

H.B. NO.

105

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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Chapter 235, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

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"
�235-
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Electric garbage truck tax credit.
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(a)
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There shall be allowed to each qualified
taxpayer subject to the tax imposed under this chapter, an income tax credit
that shall be deductible from the taxpayer's net income tax liability, if any,
imposed by this chapter for the taxable year in which the credit is properly
claimed.

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(b)
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The amount of the tax credit shall be $
for each electric garbage truck purchased by the qualified taxpayer.

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(c)
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In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for qualified expenses incurred
by the entity for the taxable year.
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The
expenses upon which the tax credit is computed shall be determined at the
entity level.
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Distribution and share of
credit shall be determined by rule.

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(d)
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The total amount of tax credits allowed under
this section shall not exceed
$ for all qualified
taxpayers in any taxable year; provided that any taxpayer who is not eligible
to claim the credit in a taxable year due to the
$ cap having
been exceeded for that taxable year shall be eligible to claim the credit in
the subsequent taxable year.

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(e)
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The director of taxation:

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(1)
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Shall prepare
any forms that may be necessary to claim a tax credit under this section;

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(2)
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May require the
taxpayer to furnish reasonable information to ascertain the validity of the
claim for the tax credit made under this section; and

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(3)
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May adopt rules
under chapter 91 necessary to effectuate the purposes of this section.

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(f)
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If the tax credit under this section exceeds
the taxpayer's net income tax liability, the excess of the credit over
liability may be used as a credit against the taxpayer's net income tax
liability in subsequent years until exhausted.
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All claims for the tax credit under this section, including amended
claims, shall be filed on or before the end of the twelfth month following the
close of the taxable year for which the credit may be claimed.
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Failure to comply with the foregoing
provision shall constitute a waiver of the right to claim the credit.

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(g)
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For the purposes of this section:

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"Electric
garbage truck" means a motor vehicle that is powered by an electric motor
via electricity stored in a high-capacity battery or generated from an onboard
fuel cell and used for the transport or disposal of garbage or solid waste.

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"Qualified
taxpayer" means a taxpayer subject to the tax under this chapter that receives
compensation for the transport or disposal of garbage or solid waste within the
State.
"

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SECTION 2.
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New statutory material is underscored.

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SECTION 3.
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This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024.

INTRODUCED BY:

_____________________________

Report Title:

Electric
Garbage Trucks; Income Tax Credit

Description:

Establishes
an income tax credit for the purchase of electric garbage trucks by qualified
taxpayers.
�
Applies to taxable years
beginning after 12/31/2024.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.