RELATING TO TAXATION.

Taxes

Active

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

Sponsor: SAYAMA, CHUN, GARRETT, ILAGAN, KAHALOA, KILA, LEE, M., LOWEN, MARTEN, MIYAKE, MORIKAWA, OLDS, POEPOE, TAKAYAMA, TAM, TARNAS, WOODSON
Last action: 2026-03-12
Official status: Referred to WAM.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific dollar amounts for the tax credits per program or in total.

Apprenticeship Program Income Tax Credit

This bill establishes an income tax credit to help businesses with qualified apprenticeship programs by allowing them to deduct certain costs from their taxes.

What This Bill Does

Creates an income tax credit for taxpayers who have qualified apprenticeship programs.
Limits the total amount of tax credits available each year and per program, but specific dollar amounts are not provided in the official source material.
Allows unused portions of the tax credit to be used in future years if not fully claimed in one year.
Requires businesses to follow all state, federal, and local rules to qualify for the credit.
Necessitates a certified statement from the Department of Labor and Industrial Relations verifying that an apprenticeship program is qualified.

Who It Names or Affects

Businesses with apprenticeship programs in Hawaii
Taxpayers who run qualified apprenticeship programs

Terms To Know

Qualified Apprenticeship Program: An apprenticeship program that is registered and approved by the Department of Labor and Industrial Relations.
Qualified Costs: Direct costs for training, instruction, and related expenses necessary to maintain compliance with regulations and provide apprenticeship opportunities.

Limits and Unknowns

The bill does not specify the exact dollar amount limits for tax credits per program or in total.
It is unclear how many businesses will qualify for this credit.
The effective date of July 1, 3000, seems to be a placeholder and likely needs correction.

Amendments

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

HD1

Hawaii published version HD1

Plain English: This amendment creates an income tax credit for businesses that participate in apprenticeship programs, allowing them to deduct up to $4,800 or half the cost of the program from their taxes.

Adds a new section to Hawaii Revised Statutes allowing taxpayers to claim an apprenticeship program income tax credit.
Limits the total amount of tax credits per qualified apprenticeship program and for all taxpayers in any taxable year, though specific dollar amounts are not provided.
Allows excess tax credit to be carried over to subsequent years if it exceeds the taxpayer's current liability.

The amendment does not specify exact limits on total tax credits per qualified apprenticeship program or for all taxpayers in any taxable year, leaving these details undefined.
The effective date of July 1, 3000, and the unspecified sunset date are unusual and may need clarification.

HD2

Hawaii published version HD2

Plain English: This amendment creates an income tax credit for businesses that sponsor apprenticeship programs, allowing them to deduct up to $4,800 or half the costs they spend on these programs from their taxes.

Adds a new section in Chapter 235 of Hawaii Revised Statutes to allow taxpayers to claim an income tax credit for qualified apprenticeship program expenses.
Limits the total tax credit per taxpayer and overall cap at $1,500,000 annually.
Allows excess credits not used in one year to be carried over to future years until exhausted.

The amendment text does not specify a maximum amount of tax credit that can be claimed per qualified apprenticeship program (the placeholder is '$').

HD3

Hawaii published version HD3

Plain English: This amendment creates an income tax credit for businesses that sponsor apprenticeship programs in Hawaii, allowing them to deduct up to $4,800 or half the costs they incur from their taxes.

Adds a new section to Chapter 235 of Hawaii Revised Statutes to allow taxpayers to claim an income tax credit for qualified apprenticeship program costs.
Limits the total tax credit per program and overall annual cap on credits, with provisions for carryover if caps are exceeded in one year.
Specifies that any excess credit not used in a given year can be carried forward to future years until exhausted.

The amendment text does not specify the exact dollar amount of the total tax credit claimed per program or the aggregate annual cap, which are placeholders in the official text.
The effective date is listed as July 1, 3000, which seems to be an error and likely intended for a different year.

Bill History

2026-03-12 S
Referred to WAM.
2026-03-12 S
Passed First Reading.
2026-03-12 S
Received from House (Hse. Com. No. 300).
2026-03-10 H
Passed Third Reading as amended in HD 3 with none voting aye with reservations; none voting no (0) and Representative(s) Kong, Pierick excused (2). Transmitted to Senate.
2026-03-06 H
Forty-eight (48) hours notice Tuesday, 03-10-26.
2026-03-06 H
Reported from FIN (Stand. Com. Rep. No. 1160-26) as amended in HD 3, recommending passage on Third Reading.
2026-03-04 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2026-03-02 H
Bill scheduled to be heard by FIN on Wednesday, 03-04-26 10:00AM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-19 H
Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and none excused (0).
2026-02-19 H
Reported from ECD (Stand. Com. Rep. No. 509-26) as amended in HD 2, recommending referral to FIN.
2026-02-13 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.
2026-02-10 H
Bill scheduled to be heard by ECD on Friday, 02-13-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-02-05 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with none voting aye with reservations; none voting no (0) and Representative(s) Woodson excused (1).
2026-02-05 H
Reported from LAB (Stand. Com. Rep. No. 19-26) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
2026-02-03 H
The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2026-01-29 H
Bill scheduled to be heard by LAB on Tuesday, 02-03-26 9:30AM in House conference room 309 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to LAB, ECD, FIN, referral sheet 2
2026-01-26 H
Introduced and Pass First Reading.
2026-01-23 H
Pending introduction.

Official Summary Text

RELATING TO TAXATION.
Taxation; Apprenticeship Program Income Tax Credit; Qualified Apprenticeship Program; Qualified Costs
Establishes an apprenticeship program income tax credit for certain qualified costs incurred by a taxpayer for a qualified apprenticeship program. Sunsets 12/31/2036. Effective 7/1/3000. (HD3)

Current Bill Text

Read the full stored bill text

HB1851

HOUSE OF REPRESENTATIVES

H.B. NO.

1851

THIRTY-THIRD LEGISLATURE, 2026

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:

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"
�235-
�
Apprenticeship
program income tax credit.
�
(a)
�

There shall be allowed to each taxpayer subject to the taxes imposed by
this chapter an apprenticeship program 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.

����
(b)
�
The
amount of the tax credit shall be ten per cent of the qualified costs incurred
by a qualified apprenticeship program in the taxable year; provided that:

����
(1)
�
The total tax
credit claimed per qualified apprenticeship program shall not exceed $
per taxable year; and

����
(2)
�
The aggregate
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.

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

����
(d)
�
To qualify for the income tax credit, the
taxpayer shall be in compliance with all applicable federal, state, and county
statutes, ordinances, rules, and regulations.

����
(e)
�
Every taxpayer claiming a tax credit under
this section shall file with the department of taxation a written, certified
statement from the department of labor and industrial relations verifying that
the apprenticeship program is a qualified apprenticeship program and specifying
the amount of qualified costs incurred.

����
(f)
�
The director of taxation:

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

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

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

����
(g)
�

No taxpayer that claims a credit under this section shall claim any
other credit for the same qualified costs under this chapter.

����
(h)
�
As used in this section:

����
"Qualified apprenticeship
program" means an apprenticeship program in the State that is registered
and approved by the department of labor and industrial relations.

����
"Qualified costs" means
costs directly incurred by a qualified apprenticeship program for training,
instruction, and related expenses necessary to maintain program compliance and
provide apprenticeship opportunities.
"

����
SECTION 2.
�
New statutory material is underscored.

����
SECTION 3.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Taxation;
Apprenticeship Program Income Tax Credit; Qualified Apprenticeship Program;
Qualified Costs

Description:

Establishes
an apprenticeship program income tax credit for certain qualified costs
incurred by a qualified apprenticeship program.
�

Applies to taxable years beginning after 12/31/2025.

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