HB1843 • 2026

RELATING TO TAX CREDITS.

Taxes

Active

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

Sponsor: YAMASHITA
Last action: 2026-02-11
Official status: The committee(s) on ECD recommend(s) that the measure be deferred.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on which tax credits are exempt, leaving room for interpretation.

Tax Credits with Sunsets

This bill requires existing tax credits to end by December 31, 2030, and new or renewed tax credits after that date to end seven years later.

What This Bill Does

Sets a deadline for all income tax credits in existence on December 31, 2026, to expire on December 31, 2030.
Requires any new or renewed tax credit after December 31, 2026, to end seven years from when it was created or renewed.

Who It Names or Affects

People who benefit from income tax credits that exist on December 31, 2026
Individuals and businesses applying for new or renewed tax credits after December 31, 2026

Terms To Know

Sunset: A date when a law or program ends automatically.

Limits and Unknowns

The bill does not specify which tax credits are exempt from the sunset requirements.
It is unclear how many existing tax credits will be affected by this legislation.

Bill History

2026-02-11 H
The committee(s) on ECD recommend(s) that the measure be deferred.
2026-02-06 H
Bill scheduled to be heard by ECD on Wednesday, 02-11-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to ECD, EEP, FIN, referral sheet 2
2026-01-26 H
Introduced and Pass First Reading.
2026-01-23 H
Pending introduction.

Official Summary Text

RELATING TO TAX CREDITS.
Taxation; Income Tax Credits; Sunset; Exceptions
Requires that income tax credits existing on 12/31/2026 include a sunset on 12/31/2030. Requires that income tax credits established or renewed after 12/31/2026 include a sunset 7 years after the date of enactment or renewal of the tax credit. Provides for exceptions.

Current Bill Text

Read the full stored bill text

HB1843

HOUSE OF REPRESENTATIVES

H.B. NO.

1843

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO TAX CREDITS
.

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

����
SECTION
1.
�
The purpose of this Act is to require
income tax credits existing on December 31, 2026, to include a four‑year
sunset; and for credits established or renewed after December 31, 2026, to
include a seven-year sunset.

����
SECTION
2.
�
Chapter 235, Hawaii Revised Statutes,
is amended by adding a new section to part I to be appropriately designated and
to read as follows:

����
"
�235-
��
��
Tax credits; generally.
�
Notwithstanding any other provision of
this chapter to the contrary:

����
(1)
�
Any income tax credit existing under this
chapter on December 31, 2026, shall sunset on December 31, 2030; and

����
(2)
�
Any income tax credit established or
renewed under this chapter after December 31, 2026, shall sunset seven years after
the date of reenactment or renewal of the tax credit;

provided that this section shall not apply to
section 235-15 or income tax credits codified under part III of this chapter.
"

����
SECTION
3.
�
New statutory material is
underscored.

����
SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Taxation;
Income Tax Credits; Sunset; Exceptions

Description:

Requires
that income tax credits existing on 12/31/2026 include a sunset on 12/31/2030.
�
Requires that income tax credits established
or renewed after 12/31/2026 include a sunset 7 years after the date of
enactment or renewal of the tax credit.
�

Provides for exceptions.

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