RELATING TO AUTONOMOUS VEHICLES.

Taxes Technology

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: LEE, M., AMATO, BELATTI, GEDEON, GRANDINETTI, ILAGAN, KILA, OLDS, SOUZA
Last action: 2026-02-10
Official status: Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and none excused (0).
Effective date: Not listed

Plain English Breakdown

The bill summary and text do not specify the exact amount of the tax credit.

Rules for Autonomous Vehicles

This bill requires commercial vehicles that use autonomous technology to transport passengers to have a human supervisor present, and it establishes an income tax credit to incentivize the training of these supervisors.

What This Bill Does

Requires any automated vehicle used by a motor carrier to carry people commercially to have a person called a 'supervisor' on board at all times.
Establishes an income tax credit for companies that train supervisors to work with autonomous vehicles.

Who It Names or Affects

Motor carriers that use automated vehicles for transporting passengers commercially
Supervisors who work with autonomous vehicles

Terms To Know

Automated vehicle: A car or truck that can drive itself using computer systems.
Dynamic driving task: The real-time actions needed to safely operate a vehicle, like steering and braking.

Limits and Unknowns

This bill does not apply to non-commercial vehicles or small trucks under 10,000 pounds.
The tax credit amount is not specified in the summary text provided.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: The amendment requires motor carriers using automated vehicles to transport passengers to have a supervisor onboard at all times and mandates training for these supervisors.

Requires any automated vehicle used by a motor carrier to transport passengers to have a human supervisor on board at all times.
Establishes that the supervisor must be properly licensed and trained in operating the automated vehicle, including its capabilities and limitations.

The amendment introduces new definitions for terms like 'automated driving system,' 'automated vehicle,' and 'dynamic driving task' but does not provide full context on how these will be regulated or enforced.
Details about the tax credit program for training supervisors are provided, but the exact implementation and administration of this program remain unclear.

Bill History

2026-02-10 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and none excused (0).
2026-02-09 H
Reported from TRN (Stand. Com. Rep. No. 95-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
2026-02-05 H
The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Kila, Miyake, Cochran, Grandinetti, Kitagawa, Muraoka; Ayes with reservations: Representative(s) Evslin, La Chica; Noes: none; and 1 Excused: Representative(s) Pierick.
2026-02-03 H
Bill scheduled for decision making on Thursday, 02-05-26 9:30AM in conference room 430 VIA VIDEOCONFERENCE.
2026-02-03 H
The committee(s) on TRN recommend(s) that the measure be deferred until 02-05-26 9:30AM.
2026-01-30 H
Bill scheduled to be heard by TRN on Tuesday, 02-03-26 10:30AM in House conference room 430 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to TRN, CPC, FIN, referral sheet 1
2026-01-23 H
Introduced and Pass First Reading.
2026-01-22 H
Pending introduction.

Official Summary Text

RELATING TO AUTONOMOUS VEHICLES.
Automated Vehicles; Motor Carrier Safety; Supervisors; Regulation; Income Tax Credit
Requires an automated vehicle used by a motor carrier to transport passengers commercially to have a human supervisor present in the vehicle. Establishes an income tax credit to incentivize the training of supervisors for autonomous vehicles. Sunsets 12/31/2036. Applies to taxable years beginning after 12/31/2026. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1797

HOUSE OF REPRESENTATIVES

H.B. NO.

1797

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to autonomous vehicles
.

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

PART I

����
SECTION 1.
�
Chapter 286, Hawaii Revised Statutes, is
amended by adding a new section to part XI to be appropriately designated and
to read as follows:

����
"
�286-
�
�
��
Automated
vehicles; supervisor required.
�
(a)
�

Any automated vehicle used by a motor carrier to transport passengers shall
have a supervisor on board at all times.

����
(b)
�
A
motor carrier that uses an automated vehicle to transport passengers shall:

����
(1)
�
Ensure that each supervisor is properly
licensed to operate the vehicle; and

����
(2)
�
Establish
a program to provide each supervisor with training and instruction related to
the operation, capabilities, and limitations of the automated vehicle.
"

����
SECTION 2.
�
Section 286-201, Hawaii Revised Statutes, is
amended by adding four new definitions to be appropriately inserted and to read
as follows:

����
"
"Automated driving
system" means the hardware and software that are collectively capable of
performing the entire dynamic driving task on a sustained basis, regardless of
whether the system is limited to a specific operational design domain, if any.

����
"Automated vehicle"
means a vehicle equipped with an automated driving system capable of performing
all aspects of the dynamic driving task within its operational design domain,
if any.

����
"Dynamic driving task"
means all of the real-time operational and tactical functions required to
operate a motor vehicle in on-road traffic, including:

����
(1)
�
Lateral vehicle
motion control through steering;

����
(2)
�
Longitudinal
motion control through acceleration and deceleration;

����
(3)
�
Monitoring the
driving environment through object and event detection, recognition,
classification, and response preparation;

����
(4)
�
Object and
event response execution;

����
(5)
�
Maneuver
planning; and

����
(6)
�
Enhancing
conspicuity with lighting, signaling, and gesturing.

"Dynamic driving task" does not include
strategic functions such as trip scheduling and selection of destinations and
waypoints.

����
"Supervisor" means a
human driver who is onboard an automated vehicle and who performs in real-time
part or all of the dynamic driving task and dynamic driving task fallback for
the vehicle.
�
A supervisor may assume or
resume performance of part or all of the dynamic driving task from the
automated driving system during a given trip.
"

����
SECTION
3
.
�
Section
286-207, Hawaii Revised Statutes, is amended to read as follows:

����
"
�286
-
207
�
Exemptions, certain vehicles.
�
[
This
]
Except as provided in
section 286-
��
, this
part shall not
apply to the following vehicles, if such vehicles are in compliance with safety
ordinances and rules of the county in which they operate and other applicable
state safety laws and rules:

����
(1)
�
Trucks,
truck-trailers, trailers, or other nonpassenger carrying equipment having a
gross vehicle weight rating of 10,000 pounds or less, except
vehicles used in transporting material found by the United
States Secretary of Transportation to be hazardous under 49 U.S.C. section 5103
and transported in a quantity requiring placarding under 49 C.F.R., subtitle B,
chapter I, subchapter C
;

����
(2)
�
Taxicabs as
described in section 271-5(3)(B);

����
(3)
�
Passenger
carrying vehicles used by employees solely for their own transportation to,
from, and during work;

����
(4)
�
Passenger
carrying vehicles with a gross vehicle weight of 10,000 pounds or less used in
car or van pools to transport less than sixteen individuals for the movement of
passengers to and from work;

����
(5)
�
A passenger
carrying vehicle used for the transportation, without compensation, of persons
for personal, recreational, or entertainment purposes;

����
(6)
�
A passenger carrying vehicle
with a gross vehicle weight rating of 10,000 pounds or less used solely for the
transportation, without compensation, of the vehicle owner, the vehicle owner's
family or guests; and

����
(7)
�
A passenger carrying vehicle
with a gross vehicle weight rating of 10,000 pounds or less used for the
transportation, without compensation, of persons for the furtherance of their
physical or mental rehabilitation or for social welfare activities.
"

PART II

����
SECTION 4.
�
Chapter 235, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

����
"
�235-
��
��
Motor carrier automated vehicle supervisor
training program tax credit.
�
(a)
�

There shall be allowed to each taxpayer subject to the tax imposed under
this chapter, a motor carrier automated vehicle supervisor training program 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.

����
(b)
�
The motor carrier automated vehicle
supervisor training program tax credit shall be equal to the qualified expenses
of the taxpayer, up to a maximum of $
���������

.

����
(c)
�
The total amount of tax credits allowed under
this section shall not exceed $
��������
�
for all 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.

����
(d)
�
The director of taxation:

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

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

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

����
(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 the foregoing
provision shall constitute a waiver of the right to claim the credit.

����
(f)
�
As used in this section, "qualified
expenses" means
�
costs that are
directly incurred by the taxpayer to establish and maintain a training program
pursuant to section 286‑
��
(b)(2).
"

PART III

����
SECTION 5.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION 6.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 7.
�
This Act shall take effect upon its approval;
provided that:

����
(1)
�
Part II shall
apply to taxable years beginning after December 31, 2025; and

����
(2)
�
This Act shall be
repealed on December 31, 2038, and section 286-207, Hawaii Revised Statutes,
shall be reenacted in the form in which it read on the day before the effective
date of this Act.

INTRODUCED
BY:

_____________________________

Report Title:

Automated
Vehicles; Motor Carrier Safety; Regulation; Income Tax Credit

Description:

Requires
an automated vehicle used by a motor carrier to transport passengers
commercially to have a human supervisor present in the vehicle.
�
Establishes an income tax credit to
incentivize the training of supervisors for autonomous vehicles.
�
Sunsets 12/31/2038.

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