Read the full stored bill text
HB1456
HOUSE OF REPRESENTATIVES
H.B. NO.
1456
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:
����
SECTION 1.
�
Chapter 235, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:
����
"
�235-
�
Environmental
sustainability; projects; tax credit.
�
(a)
�
Each individual or corporate taxpayer that
files an individual or corporate net income tax return for a taxable year may
claim a tax credit under this section against the Hawaii state individual or corporate
net income tax.
�
The tax credit may be
claimed for every qualified project that is installed and placed in service in
the State by a taxpayer during the taxable year.
�
The tax credit may be claimed for
per cent of the actual cost incurred for each qualified
project.
����
(b)
�
In
the case of a partnership, S corporation, estate, or trust, the tax credit
allowable is for every eligible project that is installed and placed in service
in the State by the entity for the taxable year.
�
The cost upon which the tax credit is
computed shall be determined at the entity level.
�
Distribution and share of credit shall be determined
by rule.
����
(c)
�
To
qualify for this tax credit, a taxpayer shall:
����
(1)
�
Comply with all
state environmental and building regulations; and
����
(2)
�
Provide
evidence that the project has quantifiable environmental benefits.
����
(d)
�
The director of taxation shall prepare forms as may be necessary to
claim a credit under this section.
�
The
director may also require the taxpayer to furnish:
����
(1)
�
Proof of costs
for the project, including itemized receipts;
����
(2)
�
Project plans,
including the projected energy output or environmental impact of the project;
and
����
(3)
�
Any
certification of compliance with labor, location, and technical requirements.
����
(e)
�
If
the tax credit under this section exceeds the taxpayer's income tax liability,
the excess of the credit over liability may be used as a credit against the
taxpayer's income tax liability in subsequent years until exhausted.
�
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.
�
Failure to comply with this
subsection shall constitute a waiver of the right to claim the credit.
����
(f)
�
Total tax credits claimed per qualified project shall not exceed
$ .
����
(g)
�
The total amount of tax credits allowed under this section in any
particular year shall be
$ .
����
(h)
�
No
costs incurred for the installation and placing into service in the State of a
qualified project
for which a credit is
claimed by any taxpayer pursuant to section 235-12.5 shall be eligible for
credits under this section.
����
(i)
�
As
used in this section, "project" means a system that supports
environmental sustainability, including support for agriculture, agroforestry,
aquaculture, circular manufacturing, or renewable energy.
"
����
SECTION 2.
�
New statutory material is underscored.
����
SECTION 3.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024.
INTRODUCED BY:
_____________________________
Report Title:
Environmental
Sustainability; Projects; Income Tax Credit
Description:
Establishes
a tax credit for individual and corporate taxpayers who install and place in
service certain projects that support environmental sustainability.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.